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School.
States in Region
Market
Size in
1999a
Percent
Projected New Development by
Merchant in
2002
2002 (est)
Salomon SB Resource Data
NPCC
MAAC
ECAR
MAIN
MAPP
ME,VT,NH,CO,MA, RI.NY
PA.NJ.MD
MI,IN,OH,KY,WV
M,IL,WI,MI
MT,ND,SD,NE,MN, IA.WI
59,000
58,000
106,000
52,000
33,000
68%
90
26
59
0
7,000
5,000
5,000
4,000
0
20,322
11,714
19,895
14,777
1,501
SERC
LA,AR,MO,MS.AL, GA,SC,NC,VA,TN
150,000
17
14,000
39,250
FRCC
SPP
ERCOT
WSCC
FL
TX,OK,KS,LA,AR
TX
CA,NV,NM,CO,UT, WA,OR,ID,MT,WY
38,000
43,000
60,000
136,000
733,000
0
3
89
35
0
2,000
13,000
9,000
57,000
8,499
9,124
22,122
21,487
168,681
Source: Hiller and Mclsaac, "Talkin' 'Bout Their Generation," Part II, Salomon Smith Barney Research Report, 12/1/2000.
a
Of this total amount, coal accounted for 51.0%, nuclear for 19.7%, natural gas for 15.3%, hydro-electric for 8.3%, oil for 3.2%, and other for 2.4% according to the US Department of Energy.
Income Statement
Total revenue
EBITDA
Deprec./amort. expense
Interest expense
Net income
1994
1995
1996
1997
$94.8
53.7
20.3
23.9
6.0
$132.1
69.5
25.9
32.2
7.4
$214.5
117.4
36.6
45.3
18.7
$276.3
172.6
46.8
61.5
34.7
$555.9
255.3
74.3
86.7
45.7
$145.9
46.3
19.0
21.0
3.9
n/a
n/a
n/a
n/a
$1.45
1.22
$1.74
1.65
$2.27
2.16
$0.19
0.18
n/a
n/a
$0.00
$0.00
$0.00
$0.00
$421.0
27.3
196.8
334.4
18.6
$554.5
85.9
190.6
407.7
25.2
$1,030.2
37.5
278.6
601.1
203.1
$1,380.9
113.0
182.9
855.9
240.0
$1,728.9
5.5
114.2
1,071.4
287.0
$2,562.6
5.5
115.2
1,786.5
470.3
1998 3/31/1999
B1/B
2.23X
95%
6.23X
Ba3/B+
2.11X
94%
5.87X
Ba3/BB2.41X
75%
5.12X
Ba2/BB2.60X
79%
4.96X
Ba2/BB
2.74X
80%
4.20X
Ba2/BB
2.20X
79%
n/a
n/a
n/a
19.8
20.1
20.2
26.3
n/a
n/a
$20.00
$14.88
$25.25
$36.44
Operations
Number of operating plants
Capacity-gross (MW)
Capacity-net (MW)
5
221
141
8
349
268
10
589
508
18
2,194
1,268
22
2,729
2,064
Basic and fully diluted earnings per share in the first quarter of 1998 were ($0.15) and ($0.15), respectively.
22
3,018
2,064
B
$105.0
101.0
262.5
---
1995
1996
B-----
BB$180.0
175.0
250.0
$317.0
298.0
1997
BB$275.0
265.0
195.0
---
1998
BB
$400.0
392.0
190.0
---
3/99
BB
$600.0
589.8
162.5
$213.9
203.8
Debt issues consisted of Calpine Corporation senior unsecured fixed-rate notes with either seven or ten-year bullet
cmaturities. Underwriter discounts and other fees represent the difference between gross and net proceeds to Calpine.
Combined initial public offering by Calpine and secondary offering by its parent Electrowatt; proceeds-$109 million for
b
Calpine IPO and $189 million for Electrowatt. Offering price was $16 per share.
1,000
90%
$31.00
$24.00
$2.20
7,500
$3.50
$500
30
65%
7.75%
2.00%
38%
Dollars
For the
Per MWh
Plant ($000) Produced
Production (MWh)
Revenue
Expense
Fuel
O&M Expense
Depreciation
Total Expense
Gross Profit
Interest Expense
Profit before Tax
Taxes @38%
Net Income
7,884,000
$244,404
$31.00
130,086
27,594
16,667
174,347
70,057
25,188
44,870
17,051
27,819
16.50
3.50
2.11
22.11
8.89
3.19
5.69
2.16
3.53
4.90%
5.31
5.53
5.66
5.91
6.27%
6.34
6.53
6.84
7.76
9.12
10.21
Interest Rates
3-month LIBOR
6-month LIBOR
3-month CD
Prime Rate
5.03%
5.13
4.94
7.75
Calpine Corporation
Equity Beta (calculated using 2 years of daily data)
Asset Beta (calculated using 2 years of daily data)
0.60
0.20
2000
2001
Electricity ($/MWh)
California/Arizona
Texas
New England
$24.69
25.22
35.18
$26.50
26.21
36.48
$27.73
26.00
37.86
$29.54
26.36
40.15
Gas ($/mmBTU)
California/Arizona
Texas
New England
$2.24
2.19
2.84
$2.19
2.14
2.94
$2.28
2.23
2.99
$2.38
2.33
3.07
11,024
12,101
12,164
12,413
11,515
12,400
12,246
12,409
11,661
12,658
11,314
12,678
Source: Morgan Stanley Dean Witter, US Investment Research on Calpine Corp., 6/18/99.
a
2002
Exhibit 9 U.S. Corporate Bond Issuance by S&P Rating and Project Debt, 19901999 (in $ billions)
1985
1986
1987
n/a
n/a
n/a
n/a
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
$79.3
31.7
28.9
15.2
2.9
18.5
5.9
$54.2
37.3
32.8
13.9
4.5
20.0
1.0
$119.2
108.8
105.5
36.4
7.2
1.5
0.0
$170.7
116.3
215.8
52.9
20.6
6.2
0.5
$188.4
105.5
203.6
100.5
23.0
27.9
1.0
$213.1
140.2
228.5
115.7
33.4
39.8
1.6
$207.9
67.8
182.9
101.2
21.0
23.7
1.9
$167.2
82.3
322.2
105.7
26.6
20.0
1.0
$242.3
100.0
329.7
146.5
40.9
44.6
1.8
$329.2
237.9
529.9
219.2
82.6
82.9
3.0
$517.1
336.8
647.6
323.2
104.9
92.8
9.4
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
13.7
4.0
23.3
3.8
42.8
4.8
67.5
7.5
56.7
9.8
1998