Calpine debtor to receive $3.72 million termination payment under TXU power purchase settlement

By Caroline Salls

Pittsburgh, Feb. 5 - Calpine Corp. debtor Calpine Energy Services LP obtained court approval of a settlement with TXU Portfolio Management Co. LP, under which Calpine will receive a $3.72 million final payment for termination of a 2000 power purchase and sale agreement, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

On Dec. 22, 2005, TXU sent a notice of default to Calpine and terminated the agreement. TXU also withheld payment of $6.55 million due to Calpine for service provided under the contract up to the termination date.

Under the settlement, TXU will keep $2.83 million of the withheld amount.

Calpine, a San Jose, Calif., power company, filed for bankruptcy on Dec. 20, 2005. Its Chapter 11 case number is 05- 60200.

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