SAN JOSE, Calif., June 4 /PRNewswire-FirstCall/ -- Calpine Corporation (OTC: CPNLQ) announced today that Greenfield Energy Centre LP ("Greenfield"), which is currently constructing a 1,005-megawatt natural gas-fired, combined- cycle electric generating plant in St. Clair Township, Ontario, Canada, has obtained $650 million in non-recourse project financing. Greenfield is a limited partnership between subsidiaries of Calpine Corporation and Mitsui & Co., Ltd., each of which hold a 50 percent interest in the Greenfield Energy Centre.

Calpine Chief Executive Officer Robert P. May stated, "As one of North America's most environmentally responsible power producers, Calpine is dedicated to developing clean, reliable and cost-effective energy solutions for its customers. This financing is a significant milestone in our progress towards supplying Ontario with a much-needed, low-carbon energy resource. We appreciate the opportunity to work with our partner, Mitsui, and Ontario Power Authority in providing a new source of reliable power generation, and also are very pleased with the support of the lead banks in arranging this financing package."

The financing was co-arranged by BMO Capital Markets, a business unit of BMO Financial Group, and The Bank of Tokyo-Mitsubishi UFJ, Ltd. and is structured as a construction loan facility that will convert to an 18-year term loan facility once the plant begins commercial operations.

The Greenfield Energy Centre entered construction in late 2005. The plant is scheduled to commence commercial operations in 2008, and will operate under a 20-year Clean Energy Supply Contract awarded by the Ontario Power Authority in 2005. Greenfield is a non-debtor Calpine affiliate and is not a party to Calpine's U.S. or Canadian bankruptcy proceedings.

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, capable of delivering nearly 25,000 megawatts of clean, cost-effective, reliable and fuel-efficient electricity to customers and communities in 18 states in the U.S. The company 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.

This news release discusses certain matters that may be considered "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, including statements regarding the intent, belief or current expectations of Calpine Corporation and its subsidiaries ("the Company") and its management and uses words such as "believe," "intend," "expect," "anticipate," "plan," "may," "will" and similar expressions to identify forward-looking statements. Such statements include, among others, those concerning the Company's expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Readers 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) the risks and uncertainties associated with the Company's Chapter 11 cases and Companies' Creditors Arrangement Act proceedings, including impact on operations; (ii) the Company's ability to attract, retain and motivate key employees and successfully implement new strategies; (iii) the Company's ability to successfully reorganize and emerge from Chapter 11; (iv) the Company's ability to attract and retain customers and counterparties; (v) the Company's ability to implement its business plan; (vi) financial results that may be volatile and may not reflect historical trends; (vii) the Company's ability to manage liquidity needs and comply with financing obligations; (viii) the direct or indirect effects on the Company's business of its impaired credit including increased cash collateral requirements; (ix) the expiration or termination of the Company's power purchase agreements and the related results on revenues; (x) potential volatility in earnings and requirements for cash collateral associated with the use of commodity contracts; (xi) price and supply of natural gas; (xii) risks associated with power project development, acquisition and construction activities; (xiii) risks associated with the operation of power plants, including unscheduled outages of operating plants; (xiv) factors that impact the output of the Company'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; (xv) quarterly and seasonal fluctuations of the Company's results; (xvi) competition; (xvii) risks associated with marketing and selling power from plants in the evolving energy markets; (xviii) present and possible future claims, litigation and enforcement actions; (xix) effects of the application of laws or regulations, including changes in laws or regulations or the interpretation thereof; and (xx) other risks identified the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2006, and its Quarterly Report on Form 10-Q for the quarter ended March 31 ,2007, which can also be found on the Company's website at http://www.calpine.com. All information set forth in this news release is as of today's date, and the Company undertakes no duty to update this information.

SOURCE Calpine Corporation
06/04/2007
CONTACT: Media, Mel Scott, +1-713-725-4300, scottm@calpine.com, or Karen
Bunton, +1-408-792-1121, karenb@calpine.com, both of Calpine Corporation
Web site: http://www.calpine.com
(CPNLQ)


4357 06/04/2007 14:00 EDT http://www.prnewswire.com