Calpine Dedicates York Energy Center, Newest Plant in Fleet

Calpine Corporation (NYSE:CPN) today joined federal, state and local officials, organized labor representatives, contractors and community leaders in celebrating the dedication of the York Energy Center, the company’s newly constructed, natural gas-fired power plant in Peach Bottom Township, York County, Pennsylvania. With electric generating capacity of 565 megawatts, the York Energy Center is able to produce enough electricity to power more than 450,000 residential customers.

"I am proud to celebrate the newest addition to the Calpine fleet, and I salute the hard work and dedication of our employees and contractors who delivered this plant three months ahead of schedule and under budget,” said Calpine President and Chief Executive Officer Jack Fusco. "For energy consumers and policymakers in Pennsylvania and the surrounding states in the PJM power market, this plant demonstrates that competitive power markets are working as designed – independent power companies will build plants and produce reliable, flexible and cost-effective power in an environmentally sustainable manner.”

Pennsylvania Governor Tom Corbett recognized the importance of the plant, commenting in a letter commemorating the event that "exploring and expanding energy resources are of the utmost importance. This facility has turned one of Pennsylvania’s own natural resources [natural gas] into a reliable, responsible energy source for our citizens…. This ceremony represents an incredibly important economic development success story and it is my sincere hope that this display of determination and ingenuity will inspire the rest of the commonwealth and beyond.”

At the dedication ceremony, Mr. Paul Bachman, President of the Central Pennsylvania Building and Construction Trades Council, spoke about the jobs the project had and will continue to create. Mr. Fusco presented a check for $450,000 to Peach Bottom Township Supervisors John Johnson, Joseph Ailes and David Stewart to help fund improvements to the community’s recreation facility.

York Energy Center is a flexible and highly efficient combined-cycle plant fitted with advanced emissions control technologies that make it among the cleanest in the eastern United States. Additionally, the combined-cycle plant consumes about 40 percent less fuel per megawatt-hour produced compared to older natural gas plants and produces less than half of the greenhouse gas emissions of the typical coal-fired power plant, making it a reliable, cost-effective, lower-carbon source of electricity.

Commercial operations at the York Energy Center commenced on March 2, and effective June 1, the power produced by York is sold to Constellation Energy under a six-year tolling agreement.

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 Dec. 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.