Calpine Geothermal Operations Recognized by State of California

July 30, 2008

Calpine Corporation (NYSE:CPN) was recently recognized by the state of California for its ongoing commitment to safety and the environment and its excellence in lease maintenance at its geothermal facilities at The Geysers in Northern California.

The California Department of Conservation presented Calpine's Geysers geothermal operations with its seventh consecutive Outstanding Lease Maintenance Award for environmental stewardship, safety, infrastructure maintenance and resource conservation. Calpine is one of two geothermal operators to receive the award, which traditionally is issued to oil and gas field operators.

Karl Urbank, Calpine's Vice President, Geothermal Operations, accepted the award on behalf of Calpine from Hal Bopp, the State Oil and Gas Supervisor for the California Department of Oil, Gas and Geothermal Resources at a Geysers Geothermal Association luncheon. When an operator receives this award, it is a reflection of the company's philosophy top-to-bottom, Bopp explained. "If management isn't committed to safe, efficient, environmentally clean operations, there's no award. But most importantly, if the field staff is not committed, it just won't happen," Bopp added.

The Geysers was recognized for going above and beyond state requirements and maintaining leases that are not only environmentally clean and safe, but go to extra effort in protecting the environment and acting as good neighbors in the community. "We are extremely pleased to receive this award for the seventh year in a row," said Mike Rogers, Calpine's Senior Vice President and President of Power Operations. "This is truly a reflection of the team spirit and effort put forth by all the employees at The Geysers to maintain our facilities in an exemplary fashion. Our company was established on the principles of good environmental stewardship, excellence in power generation and corporate responsibility. It is very satisfying to be recognized for our efforts."

Calpine's ownership in power generation began with the purchase of a five percent interest in a 20-megawatt facility at The Geysers in 1989. Since then, Calpine has consolidated ownership of the facilities within the geothermal resource area and currently operates 17 geothermal plants in the region. Steam produced in the geothermal reservoirs is conveyed to the surface by production wells and piped directly into large turbines that generate electricity. Calpine's plants at The Geysers provide approximately 725 megawatts of generating capacity to northern California's power grid.

Calpine is the largest producer of electricity from geothermal resources in the United States. Unlike wind or solar, this important resource is capable of delivering electricity 24 hours a day, 7 days a week. As a result, The Geysers is one of the most reliable energy sources in California, delivering extremely high availability and on-line performance. Calpine's operation at The Geysers accounts for about 20 percent of the renewable power produced in California. "The Geysers are a very critical renewable resource for California," Rogers said.

Calpine Corporation is helping meet the needs of an economy that demands more and cleaner sources of electricity. Founded in 1984, Calpine is a major U.S. power company, currently capable of delivering nearly 24,000 megawatts of clean, cost-effective, reliable and fuel-efficient electricity to customers and communities in 18 states in the United States. Calpine owns, leases and operates low-carbon, natural gas-fueled and renewable geothermal power plants. Using advanced technologies, Calpine generates electricity in a reliable and environmentally responsible manner for the customers and communities it serves.

SOURCE: Calpine Corporation