Calpine inks tolling agreement to supply power to TVA

By Reshmi Basu

New York, Sept. 6 - Calpine Corp. and the Tennessee Valley Authority (TVA) signed a five-year tolling agreement for the rights of the company's power plant in Decatur, Ala., according to a company press release.

Under the pact, TVA will sell the output of the Decatur Energy Center. In exchange the public power provider will supply the natural gas to fuel the plant. Meanwhile, Calpine will deliver 770 megawatts of electricity to TVA.

The agreement became effective Sept. 1.

"We are pleased that our Decatur Energy Center will continue to provide a clean, dependable and economical energy supply source to TVA," said Robert P. May, chief executive officer, in the release.

The plant has been in operation since 2002, Calpine added, lauding it for being one of the nation's cleanest plants.

Calpine filed for bankruptcy on Dec. 20, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-60200.

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