Calpine estimates Valley fire damage in The Geysers at up to $35 million

Sept. 28--Damages from the Valley fire will total $30 million to $35 million for Calpine Corp. energy production operations at The Geysers geothermal complex, the company announced Monday.

The estimated losses include property damage and lost revenue due to reductions in electric power generation.

Facility repairs should be completed within 12 months.

"We believe our insurance program will cover repair and replacement costs as well as our net revenue losses, after deductibles," the company said in a statement. Calpine expects its unmet obligations for electricity delivery will be excused until repairs are completed by reason of "force majeure," a contract clause that typically removes liability for natural and unavoidable catastrophes.

The company suffered fire damage to cooling towers and other facilities at five of its 14 power plants. The 76,000-acre blaze began Sept. 12 in the nearby Cobb area in Lake County.

Calpine's facilities at The Geysers currently are producing 540 megawatts, or about three-quarters of its normal operating capacity of 725 megawatts.

The Geysers is the world's largest geothermal complex, occupying 45 square miles along the border of Sonoma and Lake counties.

For complete wildfire coverage go to: www.pressdemocrat.com/wildfire

You can reach Staff Writer Robert Digitale at 521-5285 or [email protected]. On Twitter @rdigit

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