Friday, April 29, 2016

USA, California: Geothermal Capacity at The Geysers to be Restored to Pre-fire Levels During Third Quarter of 2016

Calpine Reports First Quarter Results, Reaffirms 2016 Guidance (News Release)

Calpine Corporation today reported first quarter earnings for 2016. Included was the following statement on Geysers Wildfire Impact:

In September 2015, a wildfire spread to our Geysers assets in Lake and Sonoma counties, California. The wildfire affected five of our 14 power plants in the region, which sustained damage to ancillary structures such as cooling towers and communication/electric deliverability infrastructure. Our Geysers assets are currently generating renewable power for our customers at more than 80% of the normal operating capacity and will be restored to prefire levels once repairs are completed, which is expected during the third quarter of 2016. 

We believe the repair and replacement costs, as well as our net revenue losses relating to the wildfire, will be limited to our insurance deductibles of approximately $36 million, all of which was recognized in 2015. Any losses incurred in 2016 related to the wildfire will be primarily offset by insurance proceeds, when such proceeds are realizable. We record insurance proceeds in the same financial statement line as the related loss is incurred. We do not anticipate the impact of the wildfire or timing of insurance proceeds recovery will have a material impact on our financial condition, results of operations or cash flows.

Calpine operates the largest single renewable geothermal power resource in the world at The Geysers. Steam produced in naturally occurring underground reservoirs is brought to the surface where it drives turbines to produce electricity. Available 24 hours a day, this important renewable resource poses none of the grid integration challenges of other renewables.

According to the presentation published with the latest financials, The Geysers consists of 14 plants constructed between 1971-1989: Aidlin, Big Geysers, Calistoga, Cobb Creek, Eagle Rock, Lake View, McCabe, Ridge Line, Sonoma, Sulphur Springs and West Ford Flat.

Currently the net capacity at The Geysers is 725 MW which is 3% of the company's generation.

The GRC will offer two GRC Fieldtrips to The Geysers from the 40th GRC Annual Meeting & GEA Geothermal Energy Expo, October 23-26 in Sacramento, California, USA.