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Calpine Signs 7-Year, 200 Megawatt Power Purchase Agreement with Xcel Energy Subsidiary Southwestern Public Service

05/26/2010

Calpine's Oneta Energy Center in Oklahoma to Supply the Power

HOUSTON, May 26, 2010 (BUSINESS WIRE) --Calpine Corporation (NYSE:CPN) has signed a seven-year power purchase agreement to provide 200 MW of electric power generated by its Oneta Energy Center to Southwestern Public Service Co. (SPS).

Calpine's Oneta Energy Center in Coweta, Okla., will supply power to SPS, a subsidiary of Xcel Energy, beginning Jan. 1, 2012. The energy purchased will be enough to power 200,000 homes in the parts of the Texas Panhandle and eastern New Mexico located on the Southwest Power Pool (SPP) grid.

Fully owned by Calpine, the Oneta Energy Center is a cleaner-burning, combined-cycle natural gas plant with 1,134 MW of capacity. The highly efficient, technologically advanced facility entered commercial operation in 2002.

"We are pleased to enhance our already strong relationship with Xcel Energy by providing a reliable, cost-effective option to help fulfill SPS' comprehensive power plans for the region," said Thad Hill, Calpine's Chief Commercial Officer. "SPS' selection of Calpine through a competitive process demonstrates our ability to tailor contract terms and products to meet our customers' individual requirements."

Calpine will furnish all fuel under the contract and will provide dispatch flexibility for SPS' energy needs. The contract resulted from a request for proposals issued by SPS, and the New Mexico Public Regulatory Commission must approve the deal. SPS must also secure firm transmission service from the SPP by July 1, 2011.

About Calpine

Founded in 1984, Calpine Corporation is a major U.S. power company, currently capable of delivering nearly 25,000 megawatts of clean, cost-effective, reliable and fuel-efficient power from its 76 operating plants to customers and communities in 16 states in the United States and Canada. Calpine Corporation is committed to helping meet the needs of an economy that demands more and cleaner sources of electricity. Calpine owns, leases and operates low-carbon, natural gas-fired and renewable geothermal power plants. Using advanced technologies, Calpine generates power in a reliable and environmentally responsible manner for the customers and communities it serves. Please visit our Web site at http://www.calpine.com for more information.

About Xcel Energy

Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural gas company with regulated operations in eight Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. Company headquarters are located in Minneapolis. More information is available at http://www.xcelenergy.com.

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 Dec. 31, 2009, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2010. 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
Media Relations:
Norma F. Dunn, 713-830-8883
norma.dunn@calpine.com
or
Investor Relations:
Andre Walker, 713-830-8775
andrew@calpine.com