Calpine Posts Wider Loss for Quarter, Opens Plant

San Jose-based Calpine Corp., an electricity producer in 21 U.S. states, said Thursday that its first-quarter net loss widened to $168.7 million as fuel and interest costs rose.

The loss was 38 cents a share compared with a loss of $71.2 million, or 17 cents, in the first quarter of 2004, Calpine said. Revenue rose 8.9% to $2.21 billion.

Calpine also said its Pastoria power plant near Bakersfield had begun operations, which will help meet demand for electricity this summer. State energy officials have warned that supplies in Southern California could run short if the weather is hotter than normal. The plant is producing 250 megawatts of electricity, and output will rise to 750 megawatts by the end of June.

In addition, Calpine is winding up construction of a 600-megawatt power plant in San Jose that’s scheduled to begin operating in June. One megawatt is enough to power about 800 typical U.S. homes.

Calpine has reported losses in seven of the last 10 quarters, partly because Chief Executive Peter Cartwright’s construction of new plants has left the company with $18.1 billion in debt and rising interest costs. Soaring prices for natural gas, used to fuel most of Calpine’s plants, have made many of them unprofitable to run.

Calpine’s stock tumbled to a record low last week amid rumors that some creditors might force the company into bankruptcy. The stock rebounded after Calpine issued a preliminary earnings statement April 29 that showed it had $800 million in cash at the end of March, enough to make debt and other payments due this year.

Calpine’s shares Thursday fell 19 cents, or 8.4%, to $2.06 on the New York Stock Exchange.