Calpine to Receive California Energy Commission Grant to Study Flexibility Enhancements at The Geysers

Calpine Corporation (NYSE: CPN), on behalf of its subsidiary Geysers Power Company LLC (The Geysers), announced today that it has been selected by the California Energy Commission (CEC) to receive a $3 million grant for “Advancing Utility-Scale Clean Energy.” Calpine will match the grant award, which will fund a study to investigate how generation at The Geysers may be modified to enhance flexibility and address the greater demands imposed on the grid by intermittent renewables.

“The Geysers is a true treasure of California,” said Joseph Ronan, Senior Advisor of Government and Regulatory Affairs for Calpine. “In continual operation for over 50 years, this keystone resource will continue to play a major role in helping California meet its renewable energy and climate objectives for years to come.”

The Geysers is the world’s largest geothermal resource developed for electric generation and produces approximately 6 million megawatt hours of reliable, low-carbon energy annually accounting for more than 15% of the delivered renewable energy in California.

The California Independent System Operator (CAISO) also offered support of the project in a letter submitted with the proposal. “As the integration of renewable resources progresses, it will be increasingly common to experience periods in which it is difficult for the electric power system to accommodate all available renewable generation. Consequently, it will become increasingly valuable to be able to shift the output of renewable resources, such as The Geysers, through enhanced modeling and/or additional investment in controls and associated equipment,” said Mark Rothleder, Vice President of Market Quality and Renewable Integration at CAISO.

“While The Geysers currently offers a considerable amount of flexibility and shaping to the system, we have been analyzing new ways to operate our facility with even greater responsiveness to changing demand. This grant will enhance our ability to support the reliability needs of the system from this renewable and low-carbon resource,” said Jim Kluesener, Calpine’s Vice President of Geothermal Operations. “We are appreciative of the support from the CEC and other California energy stakeholders in considering the role of The Geysers in meeting the challenges associated with integrating other renewable technologies into the grid.”

The CEC solicited grant proposals to help “fund applied research and development projects that develop emerging utility scale renewable energy generation technologies and strategies to improve power plant performance, reduce costs, and expand the resource base.” The funding is contingent upon approval at a public business meeting of the CEC in November and execution of a grant agreement. The solicitation comes from funds awarded by the Electric Program Investment Charge (EPIC) program, an electricity ratepayer surcharge established by the California Public Utilities Commission (CPUC) in December 2011. The EPIC funds clean energy technology projects that promote greater electricity reliability, lower costs and increased safety.

About Calpine

Calpine Corporation is America’s largest generator of electricity from natural gas and geothermal resources. Our fleet of 87 power plants in operation or under construction represents approximately 26,000 megawatts of generation capacity. Serving customers in 17 states and Canada, we specialize in developing, constructing, owning and operating natural gas-fired and renewable geothermal power plants that use advanced technologies to generate power in a low-carbon and environmentally responsible manner. Our clean, efficient, modern and flexible fleet is uniquely positioned to benefit from the secular trends affecting our industry, including the abundant and affordable supply of clean natural gas, stricter environmental regulation, aging power generation infrastructure and the increasing need for dispatchable power plants to successfully integrate intermittent renewables into the grid. We focus on competitive wholesale power markets and advocate for market-driven solutions that result in nondiscriminatory forward price signals for investors. Please visit www.calpine.com to learn more about why Calpine is a generation ahead – today.

Forward-Looking Information

In addition to historical information, this release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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,” “should,” “estimate,” “potential,” “project” 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, 2013. 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. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. Many of these factors are beyond our ability to control or predict. Our forward-looking statements speak only as of the date of this release. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and, other than as required by law, Calpine undertakes no obligation to update any such statements, whether as a result of new information, future events, or otherwise.