Calpine may benefit from global warming limits
May 16, 2007
Power generator Calpine will be well-positioned when the regularlory environment for carbon dioixde emissions shifts and federal caps are introduced, reports the Wall Street Journal.
Calpine, which filed for bankruptcy in December 2005, has seen its propsects rebound due, in part, to growing concerns over global warming and federal regulation, says the newspaper.
“Future carbon-limiting rules would be fine with Calpine because it doesn’t own coal-fired generating plants on which restrictions would be toughest,” writes Rebecca Smith. “It operates 66 clean-burning gas-fired power plants, which emit only 40% as much carbon dioxide as coal-fired plants, and 19 geothermal plants that tap the Earth’s heat to make electricity.”
Smith notes that Calpine emits the least carbon dioxide of the 20 top power generators in the U.S.
“That means it could benefit from new regulations because the rules would likely force other generators to charge more for electricity to cover greenhouse-gas compliance costs, making Calpine’s power more competitive by comparison,” she explains.
“Calpine’s stock started climbing in November, when congressional elections delivered the Democrats a big victory. Suddenly, legislation to curb greenhouse-gas emissions looked far more likely and the 150 coal plants on the drawing boards looked problematic.”
“Plugging In to Calpine” By REBECCA SMITH. May 16, 2007; Page C1. Wall Street Journal