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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: emaildelivery@businesswire.com X-To: TX-INDUSTRIAL-INFO-RES@businesswire.com X-cc: X-bcc: X-Folder: \ExMerge - Thomas, Paul D.\Deleted Items X-Origin: THOMAS-P X-FileName: paul d thomas 6-26-02.PST Welcome to eMail News Delivery, a service from Business Wire. Here is your Industrial Information Resources Inc. news release. If you have received this in error please send a message to: eMailDelivery@businesswire.com with the following command in the body of the message: unsubscribe TX-INDUSTRIAL-INFO-RES If you have questions about this service, please contact your Business Wire Account Executive or service@businesswire.com BW2009 JAN 17,2002 2:05 PACIFIC 05:05 EASTERN ( BW)(TX-INDUSTRIAL-INFO-RES) Energy Producers Continue Expansion Plans Despite Cautious Market in 2002, in an Advisory by Industrialinfo.com Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Jan. 17, 2002--The following is an advisory by IndustrialInfo.com (Industrial Information Resources Inc; Houston). It seems as though it was just yesterday that the California energy crisis was reaching catastrophic proportions and Governor Davis (CA) had all but deemed Houston the evil empire of the universe. All eyes were on the states with deregulation looming on the horizon and wondering if the next deregulated state would follow in the steps of California. State governors and a newly elected Bush Administration were scrambling for answers to prevent a regional crisis from becoming a national nightmare. Prior to that Industrial Information Resources had identified over 300,000 megawatts of new generation either under construction or in various stages of planning and development. The solution then was to build more power plants and add new capacity. Also in response to the shortfall of energy production, the National Energy Policy estimated the need for 1,300 new power plants to meet future demand. Developers responded in kind, taking an aggressive approach to meet our new electrical needs by developing and building new power plants at alarming rates. Wow! What a difference a year makes. Due to new capacity, milder seasons and a shaky economy, lower demand and prices are causing some to question the validity of the national energy crisis. No less than seven states have delayed deregulation placing in question the future developments of some new plants. Our economy, already in recession took a nose-dive after the tragic events of Sept. 11, 2001, further reducing demand primarily from industrial and commercial customers. To close out the year we witnessed the demise of the Enron Corporation, which could have far-reaching effects in the industry. As a result many developers are heading into 2002 with a more cautious approach to constructing new power plants. On Wednesday one of the most aggressive developers in the industry, Calpine Corporation (NYSE:CPN) (San Jose, Calif.) outlined their revised future development program in a conference call hosted by Pete Cartwright (chairman, CEO & president), Robert Kelly (president of Calpine Finance), Charles Clark (senior VP & corporate controller) and other members of Calpine's management team. Calpine announced plans for completion of twenty-seven projects representing 15,200MW currently under construction. "Upon completion of construction of this program, Calpine will have a portfolio of 26,300MW of the most efficient power plants in the United States by the end of 2003," stated Cartwright. Plans are to proceed with thirty-four projects in advanced development accounting for 15,100MW of capacity. Development of these projects will be completed to a point where they are ready to begin construction and then will be placed in "hot standby" according to Mr. Cartwright. "We have ordered all these projects be put on hold and no capital spending will take place until we have had opportunities to do a thorough review of each project." Calpine had planned to spend about $2 Billion on advanced projects in 2002. "We intend to keep going with these projects when conditions are right. We do not intend to have any significant cancellations." Plans are to continue with approximately 30,000MW in early development originally scheduled to be completed by 2006. In contrast, Cartwright says a number of his competitors are cancelling and selling off their projects. In his address, Mr. Cartwright also commented on the status of power markets, availability of capital and earnings. "Our goal, as it's always been, is to grow Calpine to become the largest and most profitable power generator in North America." Calpine is certainly not the only power plant developer to announce revised programs for the coming year. Companies such as NRG Energy, Dynegy and El Paso Merchant Energy have also announced a review of their strategies. Research conducted by Industrial Information Resources has identified over 50,000MW of cancelled projects since June of 2001, including projects by PPL and Mirant. "While this is a major contrast from the beginning of 2001, all we need is a speedy economic recovery, a harsh winter and a scorching summer and it could be deja vu all over again," according to Britt Burt manager of power market research for Industrial Information Resources. Industrialinfo.com provides daily news related to the industrial market place including industry alerts and databases for the energy and industrial markets. For more information on trends and upcoming construction activities for the energy and power markets as well as other industrial sectors send inquiries to powergroup@industrialinfo.com or visit us at www.industrialinfo.com or www.iirenergy.com. --30--HM/ho* CONTACT: Industrialinfo.com, Houston Britt Burt, 713/783-5147 KEYWORD: CALIFORNIA TEXAS INDUSTRY KEYWORD: ENERGY OIL/GAS UTILITIES SOURCE: Industrialinfo.com For the best viewing of the news releases please use the following email settings: Courier 10 point. -Notice of Copyright and General Disclaimer- © 2000 Business Wire. All of the releases provided by Business Wire are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire`s members who are solely responsible for their content, accuracy and originality. All reproduction, other than for an individual user`s reference, is prohibited without prior written permission. - Notice of Copyright and General Disclaimer -- © 1999 Business Wire. All of the releases provided by Business Wire are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire`s members who are solely responsible for their content, accuracy and originality. All reproduction, other than for an individual user`s reference, is prohibited without prior written permission.
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