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Calpine Supports Proposed EPA Clean Power Plan

Calpine Corporation (NYSE: CPN), one of the nation’s largest producers of electricity with 93 power plants in 20 states and Canada, has long been an industry leader, voluntarily and consistently investing in modern, efficient, flexible generation technology to provide reliable, affordable electricity in an environmentally responsible and sustainable manner. Consistent with this investment philosophy, we support policies designed to reduce greenhouse gas (GHG) emissions associated with power generation through flexible, market-based, technology-neutral rules that encourage a transition to efficient, less carbon-intensive generation.

Today, the U.S. Environmental Protection Agency (EPA) proposed the Clean Power Plan, a proposal to reduce GHG emissions from power plants that encourages flexible, market-based and technology-neutral solutions to meet the standard. The rule recognizes the differences in fuel mix for generation resources among the various states and regions and gives each state the ability to adopt its own compliance plan over a reasonable time period. It also would allow states to facilitate compliance by joining existing or forming new regional market-based GHG emissions reduction programs, enabling the states to determine how to most effectively manage the implementation and impact of the rule.

“Calpine supports the EPA’s proposal because we believe it will ensure continued progress toward cleaner energy in a way that supports ongoing grid reliability while allowing market forces to work to deliver the lowest-cost solution for reducing GHG emissions,” said Thad Hill, Chief Executive Officer of Calpine. “With our modern, flexible, efficient fleet, Calpine is ready to meet this challenge head on.”

Calpine’s fleet, which consists primarily of natural gas-fired, combined-cycle generation units, is well poised to help achieve the EPA’s innovative proposal. The national average utilization of combined-cycle generation units is approximately only 40%. By simply increasing the utilization of these existing facilities sooner rather than later, meaningful GHG emissions reductions may be achieved without sacrificing grid reliability.

Calpine, as an early mover in the transition to cleaner, reliable generation resources, looks forward to continuing to work with the EPA, states and other stakeholders to ensure that the regulations achieve meaningful, cost-effective reductions while assuring electric grid reliability.

About Calpine

Calpine Corporation generates more electricity than any other independent power producer in America, with a fleet of 93 power plants in operation or under construction, representing more than 29,000 megawatts of generation capacity. Serving customers in 20 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.