Calpine Corporation

And so I think it's a great thing to see.

But it's also funny you mentioned Yuri because I know of a company in California that had signed a PPA with Calpine.

And when Yuri did happen, the company in California made so much money off of that because it's a PPA.

So they had to.

But in between, there was work to do, but not tons.

And I worked on a case called Calpine, And Kirkland was representing the company, multi-billion dollar restructuring.

And at Weill Goucho, we were representing indenture trustee for one of the large bond issuances.

And I was able as a third and fourth year to really run with that and lead it.

So this allows Constellation to sign very long-term contracts directly with major companies.

Um, the Calpine acquisition added natural gas, uh, making Constellation much more diversified and creating the largest electricity producer in the US.

So power could become the most important resource for AI build-outs, and I believe CEG owns some of America's most valuable power assets.

Ranks a 7 out of 10 for us, and we see about a 25% upside from here.

We basically, even though we're responsible for the power supply on the wholesale side for our members, we were contracting, you know, multi-year contracts with providers for the requirement service.

And so when we purchased a minority stake in Freestone Energy Center with Calpine, that was sort of our first entry point into it.

So that gets us through the decade of the two 2010s, right? And at that time, you know, ERCOT was putting in a lot of wind, and there was a, a lot of downward pressure on wholesale pricing, at least, you know, the marginal pricing.

What Rayburn actually does, even though we're not in the competitive space of ERCOT, we definitely track what the competitive market's doing and use that as a benchmark to how well we are doing.

Precisely.

That, combined with a significant chunk of accounting goodwill they had to digest from their recent $21.8 billion acquisition of Calpine Corporation.

Right.

It just made the GAAP earnings look terrible on the surface.

It wasn't about raising capital because they were strapped for cash or anything.

Right.

It was the final regulatory hurdle required to satisfy the Department of Justice and the Federal Energy Regulatory Commission, FERC, so they could officially close that massive Calpine acquisition.

Because if they kept Brazos Valley, they'd have, what, too much market concentration in that specific Texas grid?