Calpine’s Loss Widens on Decline in Generation, Canceled Contracts

Power plant owner Calpine Corp. said Wednesday that its second-quarter net loss widened more than tenfold to $298.5 million, citing reduced generation as well as costs related to canceled service contracts and suspended plant construction.

The company, based in San Jose, said its net loss widened to 66 cents a share, from $28.7 million, or 7 cents, in the second quarter of 2004. Sales rose to $2.23 billion from $2.22 billion.

Calpine shares fell 56 cents to $3.32; the stock is down nearly 16% year to date.

The company, which owns power plants in 21 states, has reported a loss in eight of the last 11 quarters as an ambitious building program has left it with $17.4 billion in debt.

Calpine put four power plants into service in the quarter as its construction program wound down. The new plants increased generating capacity by about 6% from a year earlier to 26,599 megawatts, enough power for about 20 million typical U.S. homes.

But unplanned shutdowns at some plants reduced Calpine’s power production in the second quarter to about 20 million megawatt-hours in the quarter, little changed from last year. Its plants ran 39.7% of the time, down from 45% a year earlier.

Unplanned repairs occurred at power plants in California, Texas, Arizona and New England, Chief Financial Officer Bob Kelly said. Repairs have been completed and the plants are running this quarter, the highest demand period for power in most U.S. markets.