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Robert P. May Announces Intent to Leave Calpine after Orderly Transition

02/29/2008

Board Announces Formation of Search Committee May To Continue As CEO Until Permanent Successor Is In Place

HOUSTON & SAN JOSE, Calif., Feb 29, 2008 (BUSINESS WIRE) -- Calpine Corporation (NYSE: CPN) today announced that, after discussion with its Board of Directors, Robert P. May, its Chief Executive Officer and a director, has announced his intent to leave the Company once a successor is in place. In order to ensure an orderly transition, the Board intends to extend Mr. May's employment contract with Calpine until the management transition has been completed.

The Board has formed a search committee and will be selecting an executive search firm to identify qualified candidates to lead the Company on a permanent basis. The members of the search committee are William J. Patterson, who is also the Chairman of Calpine's Board of Directors, Frank Cassidy and Denise M. O'Leary.

"It has been a great honor to lead Calpine's employees, one of the finest groups in the country, and I am very proud of all that we have accomplished together over the last two years," said Mr. May. "Now that Calpine has emerged as a strong, focused competitor with an appropriate financial structure, now is the right time to identify a successor who will take Calpine to the next level. I have every confidence that Calpine will continue its positive momentum as one of most important providers of reliable - and environmentally responsible - electricity in this country."

"The Board and I would like to thank Bob for his tremendous contributions during his tenure with Calpine and we respect his decision to begin this transition process," said William J. Patterson, Chairman of Calpine's Board. "His leadership, experience and knowledge helped Calpine successfully navigate one of the largest and most complex reorganizations in corporate history. He led a talented team that implemented and managed operational and financial improvements, substantially enhancing the value of Calpine and leaving it well positioned for success."

Over the past 30 years, Mr. May, age 58, has served in various senior management and executive positions. Most recently, he served as Interim President and Chief Executive Officer of Charter Communications from January 2005 to August 2005. For HealthSouth Corporation, he was non-executive Chairman of the Board from July 2004 to October 2005; Interim Chief Executive Officer from March 2003 until May of 2004; and served as a Board member from 2002 to 2005.

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 capable of delivering approximately 24,000 megawatts of clean, cost-effective, reliable, and fuel-efficient electricity to customers and communities in 18 states in the United States. Calpine owns, leases, and operates low-carbon, natural gas-fired, 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 http://www.calpine.com for more information.

Forward Looking Statement

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 and Bridge Facilities 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 http://www.sec.gov or Calpine's website at http://www.calpine.com.

SOURCE: Calpine Corporation

Calpine Corporation 
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Mel Scott, 713-570-4553
scottm@calpine.com
or
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Norma Dunn, 713-830-8883
norma.dunn@calpine.com