Calpine posts its first profit in two years

Calpine Corp., the power producer that filed last year’s biggest U.S. bankruptcy, on Thursday posted its first profit in two years as it benefited from hotter weather.

Net income was $1.66 million in the third quarter, compared with a loss of $216.7 million a year earlier, the San Jose-based company said. Sales fell 34% to $2.16 billion.

Calpine’s profitability improved during hotter-than-normal weather in July and August, when states including California experienced record demand for electricity. The company also benefited from lower interest costs and the termination of some power contracts that offered below-market prices.

It was the first quarterly profit for the company since the third quarter of 2004.

Calpine filed for bankruptcy protection in December after fuel costs soared and a glut of electricity generators kept prices down.