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About Calpine Corporation

Calpine is one of America's top wholesale power generation companies. The firm has over 75 power plants with around 25,000 MW of generating capacity, about 95% of which comes from natural gas. The company's Geysers assets in northern California represent the largest geothermal power generation portfolio in the US. It sells power, steam, capacity, renewable energy credits, ancillary services to the customers, which include utilities, independent electric system operators and industrial companies, retail power providers, municipalities, CCA's and other government entities, as well as, retail commercial, industrial, governmental, and residential customers. Calpine primarily operates in competitive power markets in California, Texas, and the Northeast and Mid-Atlantic regions.


Calpine operates in four segments: Retail, Texas, East, and West. The West, Texas, and East segments cover the company's wholesale operations. Leases and derivative instruments accounts for approximately 45% of the company's total operating revenue.

The Retail segment, accounting for over 15% of revenue, serves commercial, industrial, residential, and government customers throughout Calpine's operating territories through subsidiaries including Calpine Solutions, Champion Energy, and North American Power.

The Texas segment, bringing in around 15% of sales, operates some 9,100 MW of generating capacity in competitive wholesale markets in Texas.

The West segment (around 10%) operates around 7,500 MW of capacity, primarily in California but also in Oregon and Arizona.

The East segment (over 10%) operates nearly 9,500 MW of capacity in the Northeast and Mid-Atlantic regions and in Canada.

Focusing on clean power resources, more than 60 of Calpine's natural gas-fired generation facilities use combined-cycle technologies, which use gas and steam combustion turbines to produce power more efficiently than traditional gas-fired plants. The company also operates one natural gas and fuel oil-fired steam-based plant, around a dozen geothermal steam turbine plants, and one solar plant.

Geographic Reach

Calpine serves customers in nearly 25 US states, Canada, and Mexico. The company has offices in Houston (headquarters), Texas; and San Diego, California.

Sales and Marketing

Calpine sells power and related services to wholesale customers which include commercial and industrial end-users, primarily through long-term contracts; the firm also trades power on the state and regional wholesale market operators and retail customers. Clients include utilities, municipalities, CCA's and other governmental entities, retail power companies, independent electric system operators and industrial companies, power marketers, wholesalers, retail commercial, industrial, government, and residential customers, and retail power providers.

Financial Performance

In 2019, the company's revenue increased by $560 million to $10.1 billion, compared to $9.5 billion in the prior year. The increase was due to the recovery on their mark-to-market loss with about $373 million to a gain of $618 million.

In 2019, Calpine's net income increased by $760 million to $770 million, compared to $10 million. The increase was due to the increase on their revenue and less operating expense.

The company's cash held by the end of 2019 was $1.1 billion higher than ($1.5 billion) the prior year with $406 million. Cash provided by operations was $1.6 billion while cashed used for investing activities and financing activities were $258 million and $228 million, respectively.


Calpine's capital allocation philosophy seeks to maximize levered cash returns to equity while maintaining a strong balance sheet. The company seeks to enhance value through a diverse and balanced capital allocation approach that includes portfolio management including select asset sales, organic or acquisitive growth, returning capital to owners and debt reduction. The mix of this activity shifts over time given the external market environment and the opportunity set.

The company's commercial hedging and optimization strategies are designed to maximize its risk-adjusted Commodity Margin by leveraging the company's knowledge, experience and fundamental views on natural gas and power. Additionally, the company seeks strong bilateral relationships with load serving entities that can benefit itself and its customers. Calpine's retail portfolio has been established to provide an additional source of liquidity for its generation fleet as the company hedges retail load from its wholesale generation assets as appropriate.

Company Background

Calpine was formed in 1984 to invest in clean power generation facilities. The company went public in 1996. The firm built up its retail electricity sales operations through acquisitions of Champion Energy in 2016 and North American Power in 2017.

Calpine Corporation

717 Texas St Ste 1000
Houston, TX 77002-2743
Phone: 1 (713) 830-2000

Firm Stats

Employer Type: Publicly Owned
Chairman: Frank Cassidy
President and CEO: John B. Hill
EVP and CFO: Zamir Rauf
Employees (This Location): 170
Employees (All Locations): 2,256

Major Office Locations

Houston, TX

Other Locations

Decatur, AL
Mohave Valley, AZ
Cloverdale, CA
Dublin, CA
Fairfield, CA
Middletown, CA
Sacramento, CA
Yuba City, CA
Washington, DC
Wilmington, DE
North Weymouth, MA
Westbrook, ME
Hermiston, OR
Delta, PA
Baytown, TX
Corpus Christi, TX
Edinburg, TX
Fairfield, TX
Freeport, TX
Houston, TX
Marion, TX
Pasadena, TX
Richmond, TX
Beloit, WI