Calpine Completes $650 Million Project Financing for Greenfield Energy Centre



    SAN JOSE, Calif., June 4 /CNW/ -- Calpine Corporation (OTC: CPNLQ)
announced today that Greenfield Energy Centre LP ("Greenfield"), which is
currently constructing a 1,005-megawatt natural gas-fired, combined- cycle
electric generating plant in St. Clair Township, Ontario, Canada, has obtained
$650 million in non-recourse project financing.  Greenfield is a limited
partnership between subsidiaries of Calpine Corporation and Mitsui & Co.,
Ltd., each of which hold a 50 percent interest in the Greenfield Energy
Centre.
    Calpine Chief Executive Officer Robert P. May stated, "As one of North
America's most environmentally responsible power producers, Calpine is
dedicated to developing clean, reliable and cost-effective energy solutions
for its customers. This financing is a significant milestone in our progress
towards supplying Ontario with a much-needed, low-carbon energy resource. We
appreciate the opportunity to work with our partner, Mitsui, and Ontario Power
Authority in providing a new source of reliable power generation, and also are
very pleased with the support of the lead banks in arranging this financing
package."
    The financing was co-arranged by BMO Capital Markets, a business unit of
BMO Financial Group, and The Bank of Tokyo-Mitsubishi UFJ, Ltd. and is
structured as a construction loan facility that will convert to an 18-year
term loan facility once the plant begins commercial operations.
    The Greenfield Energy Centre entered construction in late 2005.  The
plant is scheduled to commence commercial operations in 2008, and will operate
under a 20-year Clean Energy Supply Contract awarded by the Ontario Power
Authority in 2005. Greenfield is a non-debtor Calpine affiliate and is not a
party to Calpine's U.S. or Canadian bankruptcy proceedings.

    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, capable of delivering nearly 25,000 megawatts of clean,
cost-effective, reliable and fuel-efficient electricity to customers and
communities in 18 states in the U.S.  The company owns, leases and operates
low-carbon, natural gas-fired 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. Please visit http://www.calpine.com for more information.

    This news release discusses certain matters that may be considered
"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, including statements regarding the intent, belief or
current expectations of Calpine Corporation and its subsidiaries ("the
Company") and its management and uses words such as "believe," "intend,"
"expect," "anticipate," "plan," "may," "will" and similar expressions to
identify forward-looking statements. Such statements include, among others,
those concerning the Company's expected financial performance and strategic
and operational plans, as well as all assumptions, expectations, predictions,
intentions or beliefs about future events. Readers 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. Such
risks and uncertainties include, but are not limited to: (i) the risks and
uncertainties associated with the Company's Chapter 11 cases and Companies'
Creditors Arrangement Act proceedings, including impact on operations; (ii)
the Company's ability to attract, retain and motivate key employees and
successfully implement new strategies; (iii) the Company's ability to
successfully reorganize and emerge from Chapter 11; (iv) the Company's ability
to attract and retain customers and counterparties; (v) the Company's ability
to implement its business plan; (vi) financial results that may be volatile
and may not reflect historical trends; (vii) the Company's ability to manage
liquidity needs and comply with financing obligations; (viii) the direct or
indirect effects on the Company's business of its impaired credit including
increased cash collateral requirements; (ix) the expiration or termination of
the Company's power purchase agreements and the related results on revenues; (*)
potential volatility in earnings and requirements for cash collateral
associated with the use of commodity contracts; (xi) price and supply of
natural gas; (xii) risks associated with power project development,
acquisition and construction activities; (xiii) risks associated with the
operation of power plants, including unscheduled outages of operating plants;
(xiv) factors that impact the output of the Company's geothermal resources and
generation facilities, including unusual or unexpected steam field well and
pipeline maintenance and variables associated with the waste water injection
projects that supply added water to the steam reservoir; (xv) quarterly and
seasonal fluctuations of the Company's results; (xvi) competition; (xvii)
risks associated with marketing and selling power from plants in the evolving
energy markets; (xviii) present and possible future claims, litigation and
enforcement actions; (xix) effects of the application of laws or regulations,
including changes in laws or regulations or the interpretation thereof; and
(xx) other risks identified the risk factors identified in its Annual Report
on Form 10-K for the year ended December 31, 2006, and its Quarterly Report on
Form 10-Q for the quarter ended March 31 ,2007, which can also be found on the
Company's website at http://www.calpine.com. All information set forth in this
news release is as of today's date, and the Company undertakes no duty to
update this information.





For further information:

For further information: Media, Mel Scott, +1-713-725-4300, 
scottm@calpine.com, or Karen Bunton, +1-408-792-1121, karenb@calpine.com, 
both of Calpine Corporation Web Site: http://www.calpine.com

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CALPINE CORPORATION

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