Calpine Corporation announced that it has entered into a three-year power sales agreement with the Tennessee Valley Authority (TVA). Beginning in June 2004, Calpine will supply TVA with an option to purchase up to 500 megawatts per day of baseload capacity from its 794-megawatt Decatur Energy Center, under construction in Decatur, Ala. Energy deliveries will begin in June 2004 and continue through May 31, 2007. Calpine was selected through a TVA request for proposals dated January 2001 that generated approximately 45 proposals from 15 bidders.
Under an earlier request for proposals from TVA, Calpine will provide TVA with an option to purchase up to 400 megawatts of peaking supply in 2002 and up to 500 megawatts in 2003.
Calpine’s Decatur Energy Center is a natural gas-fired, combined-cycle electric generating facility located in Decatur, Ala. Phase I of the project, which includes a 500-megawatt combined-cycle power block, is in the final stages of construction, with startup expected to begin in June 2002. The remaining 294-megawatt power block is expected to begin commercial operations by the summer of 2003.
