Calpine was one of the most aggressive independent power producers of that era. For one, that was an era when many states—including California—started deregulating power generation, allowing independent developers to build large-scale power projects in a competitive market. While power demand looks set to inevitably grow, the magnitude and timing is still an open question. Notably, utilities’ long-term demand forecasts have changed a lot over the past few years and are likely to keep being revised. So while an outright bust looks unlikely, there is still the risk that independent power producers’ stocks get ahead of themselves.

Source: Forbes October 09, 2024 13:14 UTC