NEW YORK (Standard&Poor's) May 26, 2005--Standard&Poor's Ratings Services said today that Calpine Corp.'s (B-/Negative/--) announcement that it plans to reduce debt by $3 billion in 2005 is aggressive, but could improve near-term cash flow if they are successful. The announcement of the debt reduction plan does not affect the rating on Calpine at this time. Calpine stated that interest costs could be reduced by $275 million. However, asset sales will likely lead to greater volatility in revenues and expenses over the longer term. The sale of contracted power plants could increase revenue volatility as merchant power sales would make up a greater percent of revenues. Furthermore, the sale of Calpine's gas assets could cause natural gas
