Tucson Electric Power Co. (TEP) has signed a five-year wholesalecontract to supply 60 MW of electricity to Phelps Dodge EnergyServices. The contract calls for TEP to supply the power at alltimes except during the company’s peak customer energy demandperiods from July through September of each year. TEP ChairmanJames S. Pignatelli said the contract is an important one for bothcompanies. “This agreement provides a comfort factor for PhelpsDodge as it plans ahead for its energy needs,” Pignatelli said.”And for TEP, the contract provides a stable, profitable margin forfive years and a solid boost to our financial outlook in a volatileenergy market.” Pignatelli said TEP expects the agreement togenerate revenues of about $30 million annually.

Calpine said it anticipates financial results for 2001 to exceedprevious expectations. The company expects to report net income of$645 million compared with $324.7 million in 2000. Diluted earningsper share for the year are expected to be $1.80, which exceeds thecompany’s previous estimate of $1.50 and compares with $1.11 lastyear. “This increase reflects Calpine’s accelerated growth in theU.S. power industry,” commented Calpine CEO Peter Cartwright. “Withour recent announcement of our plans to acquire Encal Energy, ourcurrent expectations for 13 new energy facilities to entercommercial operations this year and a robust energy environment, weare looking forward to another strong year for Calpine.” To date,the company has 31,200 MW of base load capacity and 6,500 MW ofpeaking capacity in operation, under construction and in announceddevelopment in 28 states and Canada.

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