Calpine Restates 2001 Earnings to Reflect Missing ERCs

Calpine

(CPN)

downwardly restated its 2001 earnings after learning that some emission reduction credits it purchased weren't available in time.

The San Jose, Calif., power company said it is suing the broker who sold it the credits, which are freely traded pollution rights that Calpine uses to get power plants approved.

The restatement lowered 2002 earnings by $11.5 million, or 3 cents a share, to $1.87 a share. Diluted earnings from recurring operations were lowered by 3 cents to $1.92. The company said the restatement won't hurt its future earnings, and said it's confident that all the other ERCs it purchased in the course of its development program "are secure and not at risk of similar loss."

The shares closed at $12.70 on Thursday.