In early 1999, Calpine Corporation with CEO Pete Cartwright has an aggressive growth strategy in order to increase the total power generating company of about 3,000 to 15,000 megawatts (MW) by 2004. He thought it was a fleeting opportunity to Repower America, given the age and inefficiency of the current generating capacity, and recently had the opportunity to compete in the wholesale electricity market. In order to achieve the new target, Calpine will have to build or acquire as many as 25 power plants worth $ 6 billion (approximately $ 500,000 for 1000 MW). For a company with assets of $ 1.7 billion, subinvestment debt rating, the debt-to-capitalization ratio of 79%, and the after-tax cash flows of $ 143 million in 1998, raising so much money had to be a complex task. "Hide
by Benjamin C. Esty, Michael Kane Source: Harvard Business School 22 pages. Publication Date: May 19, 2001. Prod. # 201 098-PDF-ENG
