Through wholesale power operations and its retail businesses, Calpine serves customers in 24 states, Canada, and Mexico.[4][5] Its fleet of 80 power plants in operation or under construction represents nearly 26,035 megawatts of generation capacity.[5][6] In 2019, it reported generating 100.8 million megawatt hours of electricity, 5% more than in 2018.[6] Calpine is the largest generator of electricity from natural gas and geothermal resources in the United States.[7][8]
Its grouping of 19 power plants located in a geothermal field outside Sonoma, CA often referred to as "The Geysers" is the largest producer of renewable geothermal power in North America, producing 725 megawatts of electricity, enough to power 725,000 homes or a city the size of San Francisco.[9][10] Despite the name of the steam field no natural geysers exist near The Geysers - Clear Lake area.[11]
In addition to its retail business, Calpine is a merchant power plant operator that sells power to utilities at market rates.[12]
Los Medanos Energy Center — a 561 megawatt natural gas fired co-generation power plant located in Pittsburg, California.
Edgemoor Power Generating Station — Wilmington Delaware acquired with the purchase of Connective energy from PEPCO in July 2010. 760 Megawatt coal fired converted in July 2010 to natural Gas with additional peak turbine capacity of 350 Megawatts to be built. They also acquired 5 other power generating plants from PEPCO in the $1.63 billion deal
In 1984, Calpine was founded in Silicon Valley, California.[13] Peter Cartwright and four of his co-workers, the Guy F. Atkinson Construction Company of South San Francisco, and the Electrowatt Corporation struck an investment arrangement. With initial capital of US$1 million, it was essentially a Silicon Valley startup company. In 1988, the first QF cogeneration plant was commissioned and power production began.[13]
The name "Calpine" is derived from the company's original California location and alpine, a reference to the Zürich home base of Electrowatt. Electrowatt provided essential assistance when Calpine was a startup.[7]
In 1988, the first QF cogeneration plant was commissioned and power production began. In 1992, the company's assets reached US$21 billion. In 1994, the company reached capacity output of 141 MegaWatts. In 1996, the company's initial public offering was the largest for an independent energy company.[13]
In 1999, Calpine bought PG&E's holdings at The Geysers, acquiring most of the geothermal complex. The Houston-based company operates 15 plants and produces about 725 megawatts.[14]
2000–2020
In 2001, the California electric energy crisis occurred. In 2004, the investment bank Lehman Brothers begins shorting Calpine, with researcher Christine Daley lacking confidence in Calpine. This information spreads to clients of Lehman. By the time Calpine goes bankrupt in 2005, Lehman will profit roughly $100,000,000 from the short.[15] In November 2005, CEO Peter Cartwright and CFO Bob Kelly resigned.[16]
In 2005, the founder and CEO of Calpine, Peter Cartwright, resigned amid severe financial problems for the company. Kenneth T. Derr was named acting CEO. Derr was a retired Chevron executive.[12]
On January 31, 2008, Calpine emerged from bankruptcy protection. The company's previous stock was exchanged for warrants and new Calpine stock began trading on the NYSE under the ticker symbol "CPN."[17] Later that year, a new management team, headed by president and CEO Jack Fusco, joined the company.[18]
In 2010, Calpine bought the Conectiv Energy power plant fleet from Pepco for $1.65 billion. The deal included 18 operating plants and one plant that was under construction. The Conectiv acquisition provided access to markets in the Northeast.[19]
In 2016, Calpine acquired Noble American Energy Solutions from Noble Group. Calpine paid roughly $800 million with an additional amount of roughly $100 million in net working capital paid at closing. The acquisition was funded with cash-on-hand and a one-year loan of about $550 million. The name of this business unit was changed to Calpine Energy Solutions.[20]
In 2018, Calpine was acquire by an affiliate of Energy Capital Partners and a consortium of other investors including Access Industries and the Canada Pension Investment Board. A new board was appointed shortly after the acquisition. As Calpine became a private company its stock stopped trading prior to the opening of the New York Stock Exchange on March 9, 2018.[8]
2021–present
In February 2023, Calpine released plans to begin development for a 425 MW natural gas-fired plant next to the Freestone Energy Center in Freestone County, Texas.[21]
In July 2023, Calpine announced a $25 million carbon capture technology project. The technology could capture 95% of a plant’s carbon emissions, which would reduce greenhouse emissions.[22] The technology was created by ION Clean Energy of Colorado.[23]
In January 2025, Constellation Energy agreed to acquire Calpine for $16.4 billion ($26.6bn including debt) in a cash-and-stock deal.[24]
↑ Don Weinland in Hong Kong and David Sheppard and Neil Hume in London (2016-10-10). "Noble Group sells US energy business in turnround drive". Archived from the original on 2022-12-11. Retrieved 2017-01-04. Calpine Corporation is the largest generator of electricity from natural gas and geothermal in the US.
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US$10.072 billion (2019) [1] 