Cal Energy: Out Of Hot Water?

For the past few years, California Energy Co. has spewed trouble like an uncapped geyser. Its founder and chairman, Charles T. Condy, spent nearly $2.5 million a year on a Falcon 20 jet, a Bentley, and 15 other luxury cars for top executives--hefty perks for a small geothermal-energy producer. The company was mired in legal brawls: Partners in its giant plant in California's Mojave desert tried to oust it as operator, and its contractor sued in a dispute over ballooning construction costs. Little wonder that short-sellers flocked like vultures to California Energy's stock.

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