Calpine Completes Sale of 25% Undivided Interest in Freestone Energy Center to Rayburn Country Electric Cooperative

Calpine Corporation (NYSE:CPN) today completed the sale of a 25% undivided interest in the 1,038-megawatt Freestone Energy Center to Rayburn Country Electric Cooperative, Inc. (Rayburn) for $215 million, or $830 per kilowatt.

Calpine remains the majority owner of the combined-cycle, natural gas-fired plant, which is located near Fairfield, Texas, in the North Zone of ERCOT. Rayburn will receive 25% of the net economic benefit of the plant’s output. Calpine will continue to operate the plant and will receive annual operating and management fees from Rayburn in addition to the sales price.

The transaction represents Rayburn’s first acquisition of ownership interest in a power plant. Headquartered in Rockwall, Texas, Rayburn is a rural electric generation and transmission cooperative which provides the wholesale power requirements for five rural electric distribution cooperatives. Rayburn’s member cooperatives include Fannin County Electric Cooperative Inc., Farmers Electric Cooperative Inc., Grayson-Collin Electric Cooperative Inc., Lamar County Electric Cooperative Association and Trinity Valley Electric Cooperative Inc., which together provide electric service in sixteen counties in North Central and Northeast Texas.

Freestone Energy Center, which began commercial operation in June 2002, is a natural gas-fired combined-cycle facility. In 2009, it earned Bronze Member status in the Texas Commission on Environmental Quality’s Clean Texas Program. Using advanced technology, the Freestone plant generates power first via four electricity-producing natural gas turbines. Then it uses heat from that process to create steam that drives two steam turbines. This highly fuel-efficient approach allows Calpine to dramatically reduce emissions compared to older fossil-fuel facilities. A combined-cycle facility consumes about 40 percent less natural gas per megawatt-hour-produced than older technology plants, making it a cost-effective and low-carbon source of electricity.

About Calpine

Founded in 1984, Calpine Corporation is a major U.S. power company, currently capable of delivering approximately 27,500 megawatts of clean, cost-effective, reliable and fuel-efficient power from its 91 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 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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