Calpine Loses Bid To Break Electricity Contracts

Law360, New York (January 29, 2006, 12:00 AM EST) -- A federal judge in New York has dealt a stinging setback to bankrupt power generator Calpine Corp. and its creditors, denying the company’s attempt to break eight long-term electricity contracts and sending the matter to the Federal Energy Regulatory Commission (FERC).

Calpine had argued it should be relieved from its obligations under the contracts, which are set to expire between December 2006 and June 2025, in order to cut its losses. The company estimates it will lose $1.2 billion if it is forced to honor the...
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