Calpine, Entergy Texas enter 10-year power purchase agreement

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Houston, May 24, 2011 – Calpine Energy Services, a unit of Calpine Corp., has signed a 10-year power purchase agreement to provide 485 MW of power from its Carville Energy Center to Entergy Services, Inc., as agent for Entergy Texas, Inc., beginning in June 2012.

Entergy Gulf States Louisiana currently purchases the electrical output of the natural gas-fired Carville Energy Center, located in St. Gabriel, Louisiana.

Calpine won the new PPA through a competitive process that resulted from the 2009 request for proposals for long-term supply side resources issued by Entergy Services. Under the PPA, Calpine will provide Entergy Texas with a blend of baseload, intermediate and peaking capacity and energy and ancillary products.

Carville Energy Center, which commenced commercial operation in June 2003, is a highly efficient cogeneration power plant. Using modern, combined-cycle technology, Carville consumes about 34 percent less natural gas and emits 85 percent less nitrous oxide per MWh generated than the average fossil-fueled power plant in Louisiana. In addition to generating electricity, Carville provides steam for industrial processing to Cos-Mar Incorporated under a long-term contract.

Under the PPA, Entergy Texas will purchase the plant’s full output at summer-rated conditions. Entergy Texas will sell one-half of the power purchased under the PPA to Entergy Gulf States Louisiana.

The PPA is conditioned on regulatory approval by the Louisiana Public Service Commission of that sale and on securing satisfactory transmission.

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