The regional markets for electricity in the U.S. are more messed up than many readers probably realize. Although the power stays on, the incentives and pricing structures have led to capacity imbalances and the prospects for more problems down the line. That's a good news / bad news situation for an independent producer like Calpine (NYSE:CPN) - the good news is that this company's very efficient gas-fired generation fleet can generate attractive cash flows when pricing gets better, but the bad news is that there is little visibility on those price improvements and regulators keep trying to postpone the day of reckoning.
A Large, Clean Fleet
Calpine owns more than 28GW of aggregate electrical generation capacity, roughly half...
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