Calpine Applauds the EPA’s Approach to Regulating Green House Gas Emissions under the Clean Air Act

On November 10, 2010, the U.S. Environmental Protection Agency (EPA) issued guidance to assist permit writers and the power industry in complying with the prevention of significant deterioration (PSD) and Title V permitting requirements of the Clean Air Act for greenhouse gas (GHG) emissions. Beginning January 2, 2011, GHG emissions from large stationary sources will, for the first time, be covered by the PSD and Title V permit programs.

“Calpine applauds the EPA’s efforts to develop a reasonable and pragmatic approach to regulating GHG emissions under the Clean Air Act,” said Jack A. Fusco, President and Chief Executive Officer of Calpine (NYSE:CPN). The EPA’s actions to date are reasonable and positive steps towards curbing GHG emissions from the electric power sector by focusing on energy efficiency improvements while retaining the existing permitting procedures of the Clean Air Act.”

The EPA’s GHG permitting guidance outlines a process similar to what has been required for other air pollutants regulated under the Clean Air Act, including the five-step “top down” best available control technology (BACT) analysis. Calpine is uniquely familiar with this approach. Consistent with its long track record as a leader in generating environmentally responsible renewable geothermal and natural gas-fired electricity, Calpine received the nation’s first federally enforceable air permit with limits on the emissions of carbon dioxide (CO2) and other GHGs. The PSD permit for Calpine’s Russell City Energy Center in Hayward, California, includes limits that will result in 50 percent fewer GHG emissions than even the most advanced coal-fired plants.

“Calpine’s Russell City project provides real-world proof that this approach to controlling GHG emissions can work while stimulating innovation, local development and jobs,” said Fusco. “While we continue to review the details of the EPA’s guidance, it appears that the EPA’s BACT guidance continues the measured approach the agency began with its proposal to limit the applicability of GHG permitting rules to the highest emitting sources. As the EPA makes clear, however, the document provides guidance, not iron-clad rules. As the EPA and the states move toward implementation, we look for them to stay on the reasonable course that the EPA has set.”

About Calpine

Founded in 1984, Calpine Corporation is a major U.S. power company, currently capable of delivering nearly 29,000 megawatts of clean, cost-effective, reliable and fuel-efficient power from its 93 operating plants to customers and communities in 21 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 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, 2009, and its Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2010. 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.

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