Calpine to Raise Cash for Plant Projects

Calpine Corp., which produces power in 23 U.S. states, plans to offer $800 million in senior notes secured by some multiple-year electricity sales to California to raise cash to keep building plants.

The notes, maturing in 2010, will be secured by one of four sales renegotiated with the California Department of Water Resources in April 2002 after power prices tumbled from highs reached during the state’s energy crisis in 2000 and 2001, a spokeswoman said. The bonds also will be backed by a long-term sale to an unidentified party.

Calpine shares rose 38 cents, or 7%, to $5.66 on the NYSE.