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New Otay Mesa Energy Center Celebrates Start of Operations

Ceremony Commemorates Beginning of Full Commercial Output

SAN DIEGO, Dec 11, 2009 (BUSINESS WIRE) -- Calpine Corporation (NYSE:CPN) commemorated the start of commercial operations with a dedication ceremony at its new Otay Mesa Energy Center (OMEC) near San Diego, Calif.

The occasion was marked by celebratory events at OMEC which included numerous speeches by executives from Calpine and San Diego Gas & Electric and public officials including State Senator Christine Kehoe, Supervisor Greg Cox of the San Diego County Board of Supervisors, Jan Smutney Jones, Executive Director of Independent Energy Producers Association and Michael Peevey, President of the California Pubic Utilities Commission.

In addition, tours of the facility were given and participants enjoyed a performance by San Ysidro High School's Baile Folklorico dance troupe.

OMEC is a highly efficient combined-cycle power plant, fueled by natural gas and fitted with advanced air emissions control technology. In addition, in a first-of-its-kind program, Calpine paid to retrofit older marine vessels and sanitation vehicles with vastly improved emission control technology in order to generate mobile emissions credits that have reduced overall pollution in the region. These permanently retired emissions more than offset emissions from the plant, resulting in a net air quality benefit for the San Diego region.

The facility also is the largest air cooled power plant in the State of California, conserving precious water by eliminating the need to use ground or potable municipal water to cool recirculated steam.

"The Otay Mesa Energy Center demonstrates Calpine's continuing commitment to developing sustainable energy solutions for the people of California," said Calpine President and Chief Executive Officer Jack Fusco. "We are excited about this and our future projects in this great state and look forward to breaking ground on two other facilities, the Russell City Energy Center in Hayward and the expansion of Los Esteros Energy Center in Northern California."

The plant, with a capacity of almost 600 megawatts, began commercial operation Oct. 3 and is generating electric power for customers of San Diego Gas & Electric in the region.

Supportive Quotes about the Otay Mesa Energy Center

"It is wonderful to see this state-of-the-art facility in operation, which serves as a model with its support from every arm of the community," said Debra Reed, President and Chief Executive Officer of San Diego Gas & Electric. "This helps us provide affordable electricity to the customers we serve."

"Advanced technology power plants such as the Otay Mesa Energy Center play a critical role in meeting our demand for reliable sources of energy," said State Senator Christine Kehoe. "In addition, this project represents an example of a private company working with local labor unions to create good jobs for workers in our region."

"The Otay Mesa Energy Center is a vital part of our state's overall energy policy," said Michael Peevey, President of the California Public Utilities Commission. "By bringing this facility online we can further our goal of retiring older, aging power plants in the region."

"Today is a very good day for independent energy producers in the State of California," said Jan Smutney Jones, Executive Director of the Independent Energy Producers Association. "Calpine should be commended for its commitment and dedication to seeing this project to the finish."

"We are proud to have partnered with Calpine to build this world class facility," said Art Cantu, Secretary-Treasurer of the San Diego Building and Construction Trades Council. "This partnership is important to keeping our working men and women surviving during this difficult economy."

Calpine's Commitment to California

Calpine has built and operated power plants in the State of California for 25 years and prides itself in developing innovative and environmentally responsible energy solutions for the people of California. The Otay Mesa Energy Center will increase Calpine's California portfolio to 38 power plants and more than 5,800 megawatts including 725 megawatts of renewable geothermal energy. Calpine's geothermal facilities at The Geysers supply about 20 percent of California's renewable electric generation. Taken as a whole, Calpine's projects produce enough electricity to satisfy the power needs of more than six million California households.

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 nearly 25,000 megawatts of clean, cost-effective, reliable and fuel-efficient electricity to customers and communities in 16 states in the United States and Canada. 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 Information

In addition to historical information, this release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 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. Please see the risks identified in this release or in Calpine's reports and registration statements filed with the Securities and Exchange Commission, including, without limitation, the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2008. These filings are available by visiting the Securities and Exchange Commission's web site at http://www.sec.gov or Calpine's web site at http://www.calpine.com. 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.

SOURCE: Calpine Corporation

Calpine Corporation
Norma F. Dunn, 713-830-8883 (Media Relations)
Andre Walker, 713-830-8775 (Investor Relations)