Calpine granted court OK of debtor's terminated power contract fee agreements

By Caroline Salls

Pittsburgh, April 18 - Calpine Corp. obtained court approval of debtor Calpine Energy Services, Inc.'s agreements with three Massachusetts light departments that resolve fee disputes under the debtor's terminated power contracts with the utilities, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Calpine agreed to a $42.55 million termination fee under its contract with Reading, Mass., light department, $3.2 million with the Middleton, Mass., light department and $9.2 million with the Mansfield, Mass., light department.

In exchange, the light departments agreed to withdraw all claims against Calpine Energy Services, as well as their motion to confirm inapplicability of the automatic stay in Calpine's Chapter 11 case or terminate the automatic stay.

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

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