CPN Calpine Corp.

SAN JOSE, Calif., Oct. 17 /PRNewswire-FirstCall/ -- Calpine Corporation's (NYSE:CPN) indirect, stand-alone subsidiary CCFC Preferred Holdings, LLC (CCFC Holdings) has received funding for its $300 million offering of 6-Year Redeemable Preferred Shares due 2011. Net proceeds from the offering of the Redeemable Preferred Shares will be used as permitted by Calpine's existing bond indentures. CCFC Holdings repaid the $150 million of redeemable preferred shares due February 13, 2006 simultaneously with this closing. CCFC Holdings indirectly owns six natural gas-fired, combined-cycle power plants with a combined estimated peak capacity of approximately 3,700 megawatts. Calpine and other Calpine affiliates are not responsible for the debts or other obligations of CCFC Holdings or other CCFC entities. The Redeemable Preferred Shares have not been registered under the Securities Act of 1933, as amended, and may not be offered in the United States or any state absent registration or an applicable exemption from registration requirements. The Redeemable Preferred Shares were offered in a private placement in the United States under Section 4(2) and Regulation D under the Securities Act of 1933. This press release shall not constitute an offer to sell or the solicitation of an offer to buy. Securities laws applicable to private placements limit the extent of information that can be provided at this time. DATASOURCE: Calpine Corporation CONTACT: Katherine Potter, Media Relations, +1-408-792-1162, or , or Karen Bunton, Investor Relations, +1-408-792-1121, or , both of Calpine Corporation Web site: http://www.calpine.com/

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