916457--2/29/2008--CALPINE

related topics

{debt, indebtedness, cash}

{gas, price, oil}

{interest, director, officer}

{stock, price, operating}

{operation, natural, condition}

{financial, litigation, operation}

{stock, price, share}

{cost, operation, labor}

{loss, insurance, financial}

{system, service, information}

{tax, income, asset}

{customer, product, revenue}

{personnel, key, retain}

{regulation, government, change}

{acquisition, growth, future}

{competitive, industry, competition}

{cost, regulation, environmental}

Risks Relating to Emergence from Chapter 11 The market pricing of our reorganized Calpine Corporation common stock may be volatile. Transfers of our equity, or issuances of equity in connection with our reorganization, may impair our ability to utilize our federal income tax net operating loss carryforwards in the future. Our financial results may be volatile and may not reflect historical trends. We may be subject to claims that were not discharged in the Chapter 11 cases, which could have a material adverse effect on our results of operations and profitability. Our principal shareholders own a significant amount of our common stock, giving them influence over corporate transactions and other matters. We have substantial liquidity needs and could face liquidity pressure. Our substantial indebtedness could adversely impact our financial health and limit our operations. Substantially all of our indebtedness contains floating rate interest provisions, which could adversely affect our financial health if interest rates were to rise significantly. We may be unable to obtain additional financing in the future. Our Exit Facilities impose significant restrictions on us; any failure to comply with these restrictions could have a material adverse effect on our liquidity and our operations. Our credit status is below investment grade, which may restrict our operations, increase our liquidity requirements and restrict financing opportunities. Use of commodity contracts, including standard power and gas contracts (many of which constitute derivatives), can create volatility in earnings and may require significant cash collateral. Our ability to generate cash depends upon the performance of our subsidiaries. We may utilize project financing, preferred equity and other types of subsidiary financing transactions when appropriate in the future. Our Exit Facilities and other parent-company debt is effectively subordinated to certain indebtedness and other liabilities of our subsidiaries and other affiliates and may be effectively subordinated to our secured debt to the extent of the assets securing such debt. Our results are subject to quarterly and seasonal fluctuations. In certain situations, our PPAs and other contractual arrangements, including construction agreements, commodity contracts, maintenance agreements and other arrangements may be terminated by the counterparty, and/or may allow the counterparty to seek liquidated damages. We may be unable to obtain an adequate supply of natural gas in the future at prices acceptable to us. We rely on electric transmission and natural gas distribution facilities owned and operated by other companies. Our revenues and results of operations depend on market rules, regulation and other forces beyond our control. Revenue may be reduced significantly upon expiration or termination of our PPAs. Our power generating operations performance may be below expected levels of output or efficiency. Our power project development activities may not be successful. Our geothermal energy reserves may be inadequate for our operations. Natural disasters could damage our projects. We depend on our management and employees. We depend on computer and telecommunications systems we do not own or control. Competition could adversely affect our performance. We are subject to complex governmental regulation which could adversely affect our operations. If we were deemed to have market power in certain markets as a result of the ownership of our stock by certain significant shareholders, we could lose FERC authorization to sell power at wholesale at market-based rates in such markets or be required to engage in mitigation in those markets to counteract the market power.

Full 10-K form ▸

916457--2/29/2008--CALPINE_CORP