Power Failure

1 decade 5 months 3 weeks ago April 05, 2006 Apr 5, 2006 Wednesday, April 05 2006 Wednesday, April 05, 2006 1:06:41 PM CDT in News
Calpine, a California-based power producer and marketer, asked the U.S. Bankruptcy Court in New York on Wednesday for permission to reject eight power-supply agreements, including a contract with Great Plains subsidiary Strategic Energy LLC. Great Plains says it has enough supply to cover the possible loss of the contract. Calpine says it will lose $1.2 billion if it has to supply power until all eight contracts expire. Calpine signed the contracts between 2001 and 2003, when natural gas, the main fuel for its power plants, was much cheaper than it is today.

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