Calpine to Purchase Bosque Power Plant for $432 Million, Increasing Size of Texas Portfolio by 800 MW

  Calpine to Purchase Bosque Power Plant for $432 Million, Increasing Size of
  Texas Portfolio by 800 MW

Business Wire

HOUSTON -- October 04, 2012

Calpine Corporation (NYSE:CPN) has agreed to purchase the 800 megawatt power
plant owned by Bosque Power Co., LLC, for $432 million plus adjustments, or
approximately $540 per kilowatt. The natural gas-fired, combined-cycle plant
is located in Central Texas near the unincorporated community of Laguna Park
in Bosque County.

“Bosque is a modern combined-cycle plant making it a good fit for our clean,
efficient fleet while increasing our presence in ERCOT’s north zone consistent
with our strategy to boost capacity in Texas as electric demand rises and
reserve margins tighten,”said President and Chief Executive Officer Jack
Fusco. “TheBosque acquisition presents a great opportunity for Calpine to add
generation capacity at an important time in the evolution of one of our core
markets and at a discount to replacement cost.”

Upon purchase, Calpine will change the name of the merchant plant to the
Calpine Bosque Energy Center. The 280-acre site includes two generation
blocks:

  *a 250-megawatt block with one natural-gas turbine, one heat-recovery steam
    generator and one steam turbine that achieved commercial operations in
    June 2001 and
  *a 550-megawatt block with two natural-gas turbines that went online in
    June 2000 as well as two heat-recovery steam generators and one steam
    turbine that achieved commercial operations in June 2011.

Calpine is targeting a transaction close in early November 2012 and expects to
fund the acquisition with cash on hand. The transaction is subject to
customary closing conditions and expiration of the waiting period under the
Hart-Scott-Rodino Act. No shareholder approval is required.

About Calpine

Calpine Corporation is the largest independent power producer in the U.S.,
with a fleet of 93 power generation plants representing more than 28,000
megawatts of generation capacity. Last year our plants generated more than 94
million megawatt hours of power for our wholesale customers in 20 states and
Canada. Our 91 operating plants as well as two under construction consist
primarily of natural gas-fired and renewable geothermal power plants that use
advanced technologies to generate power in a low-carbon and environmentally
responsible manner. Our modern, clean, efficient and cost-effective fleet
stands ready to respond to the increased need for cleaner and more affordable
power as the economy recovers, as new environmental rules are implemented and
force older, dirtier plants to retire or reduce generation, as variable
renewable power generation from wind and solar grows and with it the need for
flexible natural gas generation to assure firm supply to the grid, and
finally, as natural gas becomes economically competitive with coal as a fuel
for power generation. Please visit www.calpine.com to learn more about why
Calpine is a generation ahead - today.

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, 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.

Contact:

Calpine Corporation
Media Relations:
Norma F. Dunn, 713-830-8883
norma.dunn@calpine.com
Investor Relations:
Bryan Kimzey, 713-830-8775
bryan.kimzey@calpine.com