Power Contract Financing LLC Jul 05

Standard & Poors, July 2005

Abstract
California settlement supporting validity of contracts, Record of reliable power delivery and payments, and Cash debt-service reserve supports contract. Possible contract pressure if power prices are high, and Little operating cash flow cushion. Parent Calpine Corp. formed Power Contract Financing LLC (PCF) to monetize a power sales agreement (PSA) between the California Department of Water Resources (CDWR) and Calpine Energy Services (CES). PCF purchased the rights, title, and interest in the CDWR PSA, under which CES sells electricity and electricity capacity to CDWR. PCF also entered into a mirror power-purchase agreement (PPA) with Morgan Stanley Capital Group (MSCG), under which PCF purchases electricity from MSCG. PCF also entered into an indenture and related financing documents. To finance the PSA and...

Companies mentioned in this report are: California Dept of Wtr Resources,Pacific Gas & Electric Co.,Public Service Electric & Gas Co.,Morgan Stanley,Calpine Corp.,El Paso Corp.,Cedar Brakes I LLC,Cedar Brakes II LLC,Utility Contract Funding LLC,Power Receivable Finance LLC
Action: Review

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Full Analysis

California Dept of Wtr Resources,Pacific Gas & Electric Co.,Public Service Electric & Gas Co.,Morgan Stanley,Calpine Corp.,El Paso Corp.,Cedar Brakes I LLC,Cedar Brakes II LLC,Utility Contract Funding LLC,Power Receivable Finance LLC

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