Calpine

Calpine Corporation

Company type	Public (formerly)
Industry	Energy
Founded	1984 (1984) in Silicon Valley, California, United States
Founder	Peter Cartwright
Headquarters	Houston, Texas , United States
Area served	United States (24 states), Canada, Mexico
Key people	Jack Fusco (President and CEO from 2008)
Products	Electricity generation (natural gas and geothermal), retail energy services
Parent	None (private ownership since 2018 by Energy Capital Partners, Access Industries, Canada Pension Investment Board)
Website	www.calpine.com

Calpine is a Fortune 500 energy corporation based in Houston, Texas. It stands as the leading producer of electricity generated from natural gas and geothermal sources within the United States, competing actively in deregulated power markets.

Operations

Calpine provides energy services to clients in 24 states, as well as in Canada and Mexico, through its wholesale and retail divisions. The company’s portfolio comprises 80 power plants—both operational and under development—with a combined generation capacity approaching 26,035 megawatts.

In 2019, Calpine produced 100.8 million megawatt hours of electricity. The firm functions dually as a retail energy supplier and a merchant power plant operator, marketing electricity to utilities at prevailing market prices.

Champion Energy

Champion Energy, a Calpine-owned entity headquartered in Houston, Texas, operates as a retail electricity provider serving residential, governmental, commercial, and industrial sectors within deregulated markets across Texas, Illinois, Ohio, Pennsylvania, New Jersey, and New York. Additionally, it caters to governmental, commercial, and industrial customers in Delaware, Maryland, and Washington, D.C., along with natural gas clients in Illinois. Champion Energy’s extensive market coverage enhances Calpine’s growth and diversification initiatives.

York Energy Center

Situated in Peach Bottom Township, York County, Pennsylvania, the York Energy Center is a natural gas-fired facility with a capacity of 565 megawatts, playing a key role in Calpine’s overall generation capabilities.

Metcalf Energy Center

The Metcalf Energy Center, located near San Jose in Silicon Valley’s Coyote Valley, is a combined cycle natural gas plant with 605 megawatts of capacity. It delivers electricity through major transmission pathways such as Path 15, strengthening Calpine’s strategic presence in critical energy markets.

The Geysers

The Geysers geothermal complex, positioned in the Mayacamas Mountains north of San Francisco, represents the largest geothermal field worldwide. Calpine owns 13 out of the 15 plants there, generating 725 megawatts—sufficient to supply power to roughly 725,000 households or a city comparable to San Francisco. In 2019, The Geysers contributed nearly 20% of California’s renewable energy production, highlighting Calpine’s leadership in renewable energy generation and its dedication to sustainable business practices.

Los Medanos Energy Center

The Los Medanos Energy Center is a co-generation facility powered by natural gas with a capacity of 561 megawatts, located in Pittsburg, California.

Edgemoor Power Generating Station

Located in Wilmington, Delaware, the Edgemoor Power Generating Station became part of Calpine following the acquisition of Connectiv from PEPCO in July 2010.

Russell City Energy Center

Commissioned in August 2013 in Hayward, California, the Russell City Energy Center is a natural gas-fired plant with a capacity of 619 megawatts. It holds distinction as the first U.S. power facility to obtain a federal air permit that includes a voluntary greenhouse gas emissions cap.

1984–1999

Calpine was established in 1984 in Silicon Valley, California, by founder Peter Cartwright along with partners such as Guy F. Atkinson Construction Company and Electrowatt Corporation. Starting as a Silicon Valley startup, the company began with an initial investment of US$1 million. The name "Calpine" symbolizes its California heritage combined with Electrowatt’s Swiss roots from Zürich.

The company initiated power generation by commissioning its first QF cogeneration facility in 1988. By 1992, Calpine's assets had surged to US$21 billion, and by 1994, its power generation capacity reached 141 megawatts. The company's public offering in 1996 was notable for being the largest IPO among independent energy firms at that time.

In 1999, Calpine significantly enhanced its geothermal energy portfolio by acquiring PG&E’s assets at The Geysers geothermal complex. This deal added 15 plants and approximately 725 megawatts of capacity, strengthening Calpine’s position and influence within the renewable energy sector.

2000–2020

The California electricity crisis of 2001 had a profound effect on the industry. By 2004, investment bank Lehman Brothers began betting against Calpine by short selling, anticipating financial distress. This strategy contributed to Calpine filing for bankruptcy in 2005, from which Lehman reportedly earned around $100 million. That same year, CEO Peter Cartwright and CFO Bob Kelly stepped down amid financial instability.

In 2004, Calpine expanded its natural gas capacity by acquiring the Brazos Valley Power Plant in Texas for $175 million, adding 570 megawatts to its portfolio. Following Cartwright’s resignation in 2005, Kenneth T. Derr, a retired executive from Chevron, assumed the role of interim CEO.

Calpine successfully exited bankruptcy protection on January 31, 2008, with its shares relisted on the NYSE under the ticker "CPN." Later that year, Jack Fusco was named president and CEO, leading a revitalized leadership team.

The company further expanded in 2010 by purchasing Pepco’s Conectiv Energy fleet for $1.65 billion. This acquisition included 18 operational plants and one under construction, broadening Calpine’s footprint in the Northeastern United States.

In 2016, Calpine acquired Noble American Energy Solutions from Noble Group for roughly $800 million plus working capital. Funded through cash reserves and a $550 million loan, this entity was rebranded as Calpine Energy Solutions.

In 2018, Calpine transitioned to private ownership when Energy Capital Partners partnered with Access Industries and the Canada Pension Investment Board to acquire the company. This change ushered in a new board of directors and resulted in Calpine’s NYSE delisting on March 9.

The following year, in 2019, Calpine sold its RockGen facility located in Wisconsin to Starwood Energy as part of strategic portfolio streamlining.

2021–present

In February 2023, Calpine revealed plans to construct a new 425 MW natural gas-fired power plant adjacent to its existing Freestone Energy Center in Freestone County, Texas, aiming to increase generation capacity.

By July 2023, the company initiated a $25 million carbon capture initiative employing technology from ION Clean Energy designed to capture up to 95% of carbon emissions from its facilities, demonstrating a strong commitment to greenhouse gas reduction.

In January 2025, Constellation Energy announced an agreement to acquire Calpine for $16.4 billion in cash and stock (totaling $26.6 billion including debt), representing a major consolidation move within the energy industry.

In April 2025, ExxonMobil collaborated with Calpine to manage the transportation and storage of up to two million metric tons of CO₂ annually from Calpine’s Baytown Energy Center near Houston, advancing large-scale carbon capture and storage projects.

See also

• Editors, World-Generation. Peter Cartwright. Accessed February 10, 2006.
• Peters, Sara (2002). Insights and wisdom from Calpine's CEO. Accessed February 10, 2006.
• Schlager, Neil (2006). Biography of Peter Cartwright (1930-). Accessed February 10, 2006.