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Calpine and Mitsui Announce Commercial Operation of Greenfield Energy Centre

1,005-Megawatt Plant to Operate Under 20-Year Contract with Ontario Power Authority

HOUSTON & SAN JOSE, Calif. & TOKYO, Oct 17, 2008 (BUSINESS WIRE) -- Calpine Corporation (NYSE:CPN) and Mitsui & Co., Ltd. announce the completion of construction and commercial operation of the Greenfield Energy Centre (Greenfield), located in Courtright, St. Clair Township, near Sarnia, Ontario, Canada. Greenfield is a limited partnership between subsidiaries of Calpine and Mitsui, each of which hold a 50 percent interest in the project.

"We congratulate the Greenfield project team for the successful completion of this important new energy resource," said Calpine Chief Executive Officer Jack Fusco. "We appreciate the opportunity to have worked with Mitsui and Ontario Power Authority to provide Ontario with a cost-effective, energy-efficient, reliable and low-carbon solution to the region's growing electricity needs."

"We are delighted to announce the completion of Greenfield Energy Centre and to contribute to meet the growing electricity demand in Ontario. We have had the pleasure of working with Calpine and Ontario Power Authority on this project which will be providing Ontario with reliable long-term clean energy," said Mitsui Executive Managing Officer Takao Omae.

In 2005, Greenfield was awarded a 20-year clean energy supply contract with the Ontario Power Authority (OPA) to construct and operate the 1,005-megawatt combined-cycle power plant. Greenfield provides energy and capacity to the Independent Electricity System Operator of Ontario. Under the terms of the contract, OPA guarantees revenue equivalent to a fixed monthly payment, plus payment for variable operations and maintenance costs based on actual electricity generation.

The plant is a clean and highly efficient combined-cycle facility fueled by natural gas and is equipped with advanced air emission controls including Dry Low-NOx combustion, Selective Catalytic Reduction technology and a continuous emission monitoring system. With the use of clean-burning natural gas, combined with its high level of thermal efficiency, Greenfield is a relatively low-carbon electric generating facility that will produce approximately half as much carbon dioxide per megawatt-hour of electricity as an older coal-fired power plant.

Greenfield is financed by an 18-year, CAD550 million non-recourse project term loan, co-arranged by BMO Capital Markets, a business unit of BMO Financial Group, and The Bank of Tokyo-Mitsubishi UFJ, Ltd.

About Calpine

Calpine Corporation is helping meet the needs of an economy that demands more and cleaner sources of electricity. Founded in 1984, Calpine is a major U.S. power company, currently operating nearly 24,000 megawatts of clean, cost-effective, reliable and fuel-efficient electricity to customers and communities in 16 states in the United States. Calpine owns, leases, and operates low-carbon, natural gas-fueled and renewable geothermal power plants. Using advanced technologies, Calpine generates electricity in a reliable and environmentally responsible manner for the customers and communities it serves. Please visit www.calpine.com for more information.

About Mitsui

Mitsui is one of Japan's leading trading houses, with a diversified business portfolio including activities in infrastructure projects, oil & gas, natural resources, chemicals, food, textile and other sectors. Mitsui operates through its trading subsidiaries in 67 countries worldwide, with approximately 42,000 employees on a consolidated basis. Power generation is one of Mitsui's core businesses, with net generation capacity of 3.8GW. Mitsui owns and manages a portfolio of interests in 29 power stations located in 16 countries.

Forward Looking Information

In addition to historical information, this release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words such as "believe," "intend," "expect," "anticipate," "plan," "may," "will" and similar expressions identify forward-looking statements. Such statements include, among others, those concerning expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results to differ materially from those anticipated in the forward-looking statements. Such risks and uncertainties include, but are not limited to: (i) Calpine's ability to implement its business plan; (ii) financial results that may be volatile and may not reflect historical trends; (iii) seasonal fluctuations of results and exposure to variations in weather patterns; (iv) potential volatility in earnings associated with fluctuations in prices for commodities such as natural gas and power; (v) ability to manage liquidity needs and comply with covenants related to the Exit Credit Facility and other existing financing obligations; (vi) Calpine's ability to complete the implementation of its Plan of Reorganization and the discharge of its chapter 11 cases including successfully resolving any remaining claims; (vii) disruptions in or limitations on the transportation of natural gas and transmission of electricity; (viii) the expiration or termination of power purchase agreements and the related results on revenues; (ix) risks associated with the operation of power plants including unscheduled outages; (x) factors that impact the output of Calpine's geothermal resources and generation facilities, including unusual or unexpected steam field well and pipeline maintenance and variables associated with the waste water injection projects that supply added water to the steam reservoir; (xi) risks associated with power project development and construction activities; (xii) ability to attract, retain and motivate key employees including filling certain significant positions within Calpine's management team; (xiii) ability to attract and retain customers and counterparties; (xiv) competition; (xv) risks associated with marketing and selling power from plants in the evolving energy markets; (xvi) present and possible future claims, litigation and enforcement actions; (xvii) effects of the application of laws or regulations, including changes in laws or regulations or the interpretation thereof; and (xviii) other risks identified from time-to-time in Calpine's reports and registration statements filed with the SEC, including, without limitation, the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2007. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and Calpine undertakes no obligation to update any such statements. Unless specified otherwise, all information set forth in this release is as of today's date, and Calpine undertakes no duty to update this information. For additional information about Calpine's chapter 11 reorganization or general business operations, please refer to Calpine's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, and any other recent Calpine report to the Securities and Exchange Commission. These filings are available by visiting the Securities and Exchange Commission's website at www.sec.gov or Calpine's website at www.calpine.com.

SOURCE: Calpine Corporation

Calpine Media Relations:
Mel Scott, 713-570-4553
Calpine Investor Relations:
Andre Walker, 713-830-8775
Mitsui Media Relations:
Corporate Communications Division
Telephone: +81-3-3285-7566
Facsimile: +81-3-3285-9819
Mitsui Investor Relations:
Investor Relations Division
Telephone: +81-3-3285-7910
Facsimile: +81-3-3285-9819