Calpine enters power supply agreement with Western Farmers Electric

Calpine Corp. on March 5 said it has signed an agreement with Western Farmers Electric to supply electric generation capacity and power from its 1,134-MW combined-cycle power plant Oneta Energy Center located in Coweta, Okla.

Under the agreement, Calpine will supply power to WFEC from June 1, 2014, through 2035.

Financial terms of the agreement were not disclosed.

WFEC initially will purchase 160 MW of Oneta’s capacity, and that amount will increase in increments up to a maximum of 280 MW in 2019-2035.

The contract is conditioned on certain approvals, including securing satisfactory transmission service.

“This is a win-win-win transaction. For WFEC and its members, our facility provides secure, reliable and affordable long-term power supply,” Calpine’s COO Thad Hill said. “For Calpine, the level of capacity payments approaching replacement cost reflects the value of our modern and efficient fleet as the nation moves toward greater natural gas-fired generation.

“For Oklahoma, it means the use of power generated by Oklahomans in Oklahoma from cleaner burning natural gas produced in Oklahoma. We look forward to a long and mutually beneficial relationship with Western Farmers Electric Cooperative,” Hill added.

WFEC is a power generation and transmission cooperative in Oklahoma.