Calpine makes 15-year energy deal

Calpine Corporation has signed an agreement to supply electric generation capacity and power to American Electric Power Service Corporation. Calpine will do so as agent for Public Service Company of Oklahoma, from Calpine’s Oneta Energy Center for the 15-year period spanning from June 1, 2016, through May 31, 2031.

Calpine is the largest independent power producer in the U.S., with a fleet of 93 power generation plants representing more than 28,000 megawatts of generation capacity.
Under the contract, PSO will purchase 260 megawatts of Oneta’s capacity, energy and ancillary services. PSO will have the right to dispatch Oneta to meet its energy needs up to the contracted capacity. Calpine secured the contract through a competitive process resulting from a request for proposals that PSO issued earlier this year.

“We are pleased to partner with PSO to provide Oklahomans with power that is generated locally from cleaner burning natural gas produced in Oklahoma,” said Calpine’s Chief Operating Officer, Thad Hill. “The highly efficient Oneta Energy Center is one of the most in-demand assets in Calpine’s fleet. When this 15-year power purchase agreement takes effect, Oneta’s capacity will be almost fully subscribed for the balance of the decade at pricing levels that reflect the tightening reserve margins in the region.”

PSO is an electric utility company serving more than 530,000 customers in eastern and southwestern Oklahoma. PSO provides electricity to 230 cities and towns across a service area encompassing 30,000 square miles.
The clean and modern Oneta Energy Center is located near Tulsa in Coweta, Oklahoma. This combined-cycle, natural gas-fired power plant is capable of generating up to 1,134 megawatts of electricity.