Calpine expects to reach full operation of Geyser operations by Q3 2016
Calpine expects to reach full operation of its Geyser geothermal plants by the third quarter of 2016, following the destruction of wildfires in 2015. Currently. Currently, the company only reaches 80 percent of normal operating capacity.
Following the destructive wildfire at the Geysers in California, geothermal power operations of Calpine were effected in Lake and Sonoma counties in California, as we reported last year.
In recent reports on its financial results for the first quarter of 2016, Calpine reports that “the wildfire affected five of its 14 power plants in the region, which sustained damage to ancillary structures such as cooling towers and communication/electric deliverability infrastructure.
Currently, Calpine plants at the Geysers are generating renewable power for our customers at more than 80% of the normal operating capacity and will be restored to pre-fire levels once repairs are completed, which is expected during the third quarter of 2016.
Repair and replacement costs, as well as our net revenue losses relating to the wildfire, will be limited to Calpine’s insurance deductibles of approximately $36 million, all of which was recognized in 2015. Any losses incurred in 2016 related to the wildfire will be primarily offset by insurance proceeds, when such proceeds are realizable. Insurance proceeds were reported in the same financial statement line as the related loss is incurred. We do not anticipate the impact of the wildfire or timing of insurance proceeds recovery will have a material impact on our financial condition, results of operations or cash flows.