Calpine’s Chapter 11 Case Could Cost Utility
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Great Plains Energy Inc., the parent company of Kansas City Power & Light Co., said that abankruptcy filing by Calpine Corp. could reduce next year’s earnings by as much as $4 million.
Calpine, a power producer and marketer based in San Jose, Wednesday asked the U.S. Bankruptcy Court in New York for permission to reject eight power-supply agreements. Among those is a contract with Great Plains subsidiary Strategic Energy.
Calpine said in its filing that it would lose $1.2 billion if forced to supply power through the expiration of all eight contracts. The company 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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