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Calpine, Entergy Texas Enter 10-Year Power Purchase Agreement

Calpine's Carville Energy Center to Provide 485 MW of Electricity

HOUSTON, May 24, 2011 (BUSINESS WIRE) -- Calpine Energy Services, L.P., a subsidiary of Calpine Corporation (NYSE:CPN), has signed a 10-year power purchase agreement (PPA) to provide 485 megawatts of power from its Carville Energy Center to Entergy Services, Inc., as agent for Entergy Texas, Inc., beginning in June 2012.

Entergy Gulf States Louisiana, L.L.C., currently purchases the electrical output of the natural gas-fired Carville Energy Center, located in St. Gabriel, Louisiana. Calpine won the new PPA through a competitive process that resulted from the 2009 Request for Proposals for Long-term Supply Side Resources issued by Entergy Services. Under the PPA, Calpine will provide Entergy Texas with a blend of baseload, intermediate and peaking capacity and energy and ancillary products.

"We are pleased to continue our productive relationship with Entergy," said Heather Hazen, Calpine's Vice President of Strategic Origination for its South Region. "This agreement illustrates the value of natural gas-fired generation in terms of dispatch flexibility to meet our customers' quickly changing load needs."

Carville Energy Center, which commenced commercial operation in June 2003, is a highly efficient cogeneration power plant. Using modern, combined-cycle technology, Carville consumes significantly less natural gas and emits less nitrogen oxide per megawatt hour generated than the average fossil-fueled power plant. In addition to generating electricity, Carville provides steam for industrial processing to Cos-Mar Incorporated under a long-term contract.

Under the PPA, Entergy Texas will purchase the plant's full output at summer-rated conditions. Entergy Texas will sell one-half of the power purchased under the PPA to Entergy Gulf States Louisiana. The PPA is conditioned on regulatory approval by the Louisiana Public Service Commission of that sale and on securing satisfactory transmission.

About Calpine

Founded in 1984, Calpine Corporation is a major U.S. power company, currently capable of delivering approximately 28,000 megawatts of clean, cost-effective, reliable and fuel-efficient power from its 92 operating plants to customers and communities in 20 U.S. 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 primarily 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 website at 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, 2010, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2011. 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. 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

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