CPN: Calpine Corporation Message Board

1/20/2002 12:05:12 PM

In a recent thestreet.com article by Peter Eavis on Friday January 18, 2002 he says Calpine is paying approximately $550,000 for every megawatt of capacity it adds. In June 1999 Ann Curtis, Calpine's CFO, said every megawatt of capacity Calpine adds to its portfolio of power plants adds $20,000 of net income. These numbers give a return on assets of 3.6%. Not very encouraging and implies if Calpine wants a high return on equity Calpine will be highly leveraged in the foreseeable future.