Project Finance: Practical Case Studies

equal to up to 25 per cent of the contract price for each project. The EPC contracts also con- tain extensive warranty packages ...

will not be met are mitigated by the project’s interconnections with two different pipeline sys- tems, Texas Gas and Gulf States ...

Power marketing risk Aquila, the former manager of short-term energy transactions for both projects, was among the top five ener ...

During 2002 and early 2003 the Panda–TECO joint venture replaced its EPC contractor and sought to replace its power marketer; TE ...

Aquila to reflect the increased importance of its energy trading activities. During 2002, how- ever, all energy traders came und ...

TECO Energy’s stock because they anticipated an oversupply of electricity in some of the markets that the company’s new wholesal ...

Additional financing In October 2002 TECO Energy issued US$200 million in common equity. Despite this bal- ance-sheet strengthen ...

prices would be the key, not only in Florida, but also in all the other markets where TECO Energy was building plants, including ...

Chapter 14 Calpine, United States Summary of approach to projects^1 This case study, unlike other case studies in this book, exa ...

project finance loans, private placements, leveraged leases and open-ended revolving credits. Calpine’s financing of a 240 MW ga ...

in the domestic US power generation industry. Historically the industry has been dominated by regulated electricity monopolies s ...

investors since 1994 – US$8 billion in 2000 alone – while staying below its target ratio of 65 per cent debt to total capitalisa ...

When Pacific Gas & Electric Company was forced to sell the plants, Calpine had the right of first refusal, but had only 60 d ...

so many individual project finance loans in such a short time, especially considering that about a dozen banks are required to s ...

estimated US supply, at an annual cost of about US$10 billion. To assure its supply and pro- tect its costs Calpine started to t ...

The company’s pro formainterest in 66 power plants and steamfields, representing 1 1,600 MW of capacity, created a true portfol ...

Perfect storm By December 2001 Calpine’s financial outlook had been changed by a confluence of events that included recession in ...

agency’s adjustments to include guarantees on lease payments and partial debt treat- ment of convertible preferred stock increas ...

company had competitive and timely access to the capital markets, providing it with suffi- cient liquidity to meet its current a ...

operations. A large integrated oil company that wanted to move into power had been consid- ered for some time to be the type of ...