Risk & Compliance

SEC Seeks Info from Calpine

The commission is seeking information related to the energy company's downward revision of proved oil and gas reserve estimates.
Stephen TaubJune 10, 2005

Calpine Corp. announced that the Division of Enforcement of the Securities and Exchange Commission has requested documents related to previous revisions of its reserves and financial statements.

In a regulatory filing, Calpine elaborated that the SEC is seeking information related to its downward revision of proved oil and gas reserve estimates at year-end 2004, compared with year-end 2003, and the company’s corresponding impairment of the value of certain assets, which it previously disclosed.

The commission is also seeking information related to statements made to regulatory agencies by a terminated former Calpine employee. Those statements concern the energy company’s determination of state sales and use taxes as well as Calpine’s April 2005 upward restatement of earnings for the third quarter, and the first three quarters, of 2004.

The company stressed it is fully cooperating with the SEC’s request.

Calpine noted in a May 11 filing that subsequent to his termination, the former employee filed a claim with the Department of Labor alleging that his termination violated the whistle-blower provisions of the Sarbanes-Oxley Act.

An investigation by federal regulators, which found no reasonable cause to believe that Calpine violated those Sarbanes-Oxley provisions, dismissed the former employee’s claim, according to the company. Calpine also acknowledged that the employee’s right to appeal this decision has not yet expired.