SUMMARY OF CONTRACT RENEGOTIATION EFFORTS
As of February 11, 2003
Status
-
To date, 22 energy contracts have been renegotiated (out of a total of 56). Renegotiations to date have reduced the State’s obligations by more than $5.1 billion (on $23.2 billion worth of contracts, or roughly 22%). Renegotiation efforts are on-going.
Reduced Energy Prices and Contract Terms
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Shortened contract terms.
Examples: GWF, Calpine, High Desert.
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Reduced prices.
Examples: Calpine, GWF, Sunrise, PGE Trading, Soledad.
Improved Products
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Conversion of must-take energy to dispatchable energy products.
Examples: Williams, High Desert.
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Improved dispatch rights for dispatchable products.
Examples: Sunrise, CalPeak.
More Reliable Energy Products
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Improved availability provisions with penalties for failure to deliver energy.
Examples: Williams, Calpine, High Desert.
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Limitations on substitute energy; greater transparency.
Examples: Calpine, Williams.
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Anti-gaming provisions and termination rights.
Examples: Williams, High Desert, GWF.
Guarantees that New Generation Will Be Built
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Liquidated damages and/or termination rights for failure to construct new power plants.
Examples: High Desert, CalPeak, Calpine.
Improved Contract Administration Terms
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Limitation of provisions permitting costs to be passed through to DWR.
Examples: GWF, Williams.
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Improved inspection rights.
Examples: Williams, High Desert.
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Improved assignment and novation terms.
Examples: all renegotiated contracts.
| Original Cost ($M) | All-In Contract Savings ($M) | ||
| Total Original Cost (56 contracts, 26 parties) | $43,500 | ||
| Renegotiated Contracts Savings (22 Contracts, 15 parties) | $5,155 | ||
| Calpine | $ 11523 | $ 2486 | |
| HDPP | $ 3282 | $ 1167 | |
| Williams | $ 4327 | $ 1003 | |
| GWF | $ 991 | $ 215 | |
| CalPeak | $ 403 | $ 71 | |
| Whitewater | $ 100 | $ 17 | |
| Cabazon | $ 66 | $ 11 | |
| Alliance | $ 180 | $ 15 | |
| PG & E ET | $ 84 | $ 3 | |
| Capital Power (*) | $ 53 | $ 6 | |
| Soledad | $ 44 | $ 2 | |
| Clearwood | $ 140 | $ 28 | |
| Wellhead | $ 141 | $ 8 | |
| Santa Cruz County | $ 9 | $ 2 | |
| Sunrise | $ 1874 | $ 121 | |
| Cost after Renegotiation | $38,345 |
(*) Capitol has been terminated, saving a total of $46M
