$189 million deal: Calpine receives court approval for sale of Acadia Power Partners

San Jose, CA, Aug 2, 2007 — Calpine Corp. announced that it has received approval from the U.S. Bankruptcy Court, Southern District of New York for the previously announced sale of the company’s 50% ownership interest in Acadia Power Partners LLC, the owner of the Acadia Energy Center, to Cajun Gas Energy LLC for approximately $189 million.

The sale price includes the payment of $85 million in priority distributions due to Acadia Power Holdings LLC (Cleco) in accordance with the limited liability company agreement of Acadia Power Partners. The company expects to close the transaction, pending certain regulatory approvals, in the third quarter of 2007.

Acadia Energy Center is a 1,160-MW natural gas-fired facility located near Eunice, La., equally owned by Acadia Power Holdings LLC and Calpine Acadia Holdings LLC. Electricity generated by the Acadia Energy Center is sold into the Southwest Power Pool and the Southeastern Electric Reliability Council. Cleco originally offered to purchase Calpine’s interest in Acadia Power Partners LLC for $145 million, and Cleco entered into a settlement and release agreement whereby Cleco waived certain of its rights under the limited liability company agreement, including the buy-out right. In accordance with bidding procedures approved by the Bankruptcy Court, Calpine held an auction on July 30, 2007 to allow other potential buyers to bid on the asset. At the conclusion of the auction, Cajun Gas Energy LLC was selected as the winning bidder. Proceeds from the sale will be used to reduce Calpine’s debt and enhance liquidity.

For related articles on the continuing Calpine bankruptcy and recovery, please read these articles:

Court allows Calpine to proceed with $5 billion replacement DIP financing

Calpine gets approval to sell power plant; moves forward with bankruptcy recovery plan

Calpine sells excess inventory

Calpine sells interest in Wisconsin power plant

Calpine to sell interest in Cali energy center

Court OKs Calpine power plant sale

Calpine repays $645 million of its 9 5/8% First Priority Senior Secured Notes due 2014

Calpine Power Income Fund announces departure of CFO Geoff Krause

Calpine completes sale of Mexican power plant

Calpine to cut 775 jobs; announces plans to sell non-core power plants

Calpine sells interest in Mexican power plant; general counsel departs

Calpine shifting executive staff to go forward with restructuring plan

Calpine closes $2 billion DIP financing

Calpine declares compensation figures for board; purchases geothermal plants; appoints new board member

Calpine finalizes collateral structure for $2 billion DIP facility

Calpine files to reject two power plant lease agreements

Calpine to eliminate 300 jobs, sell non-core business

Calpine Power Income Fund and its manager in dispute

Default avoided on King City Project: Calpine Power Income Fund; Scott Davido named CFO of Calpine

Calpine receives court approval of $2 billion DIP financing

Calpine announces departure of member of board

Calpine terminates tender offer for outstanding first priority senior secured notes

Calpine receives court approval of first day motions

Calpine files for bankruptcy

Calpine given time to repay debts, but not much

Calpine’s common stock to cease trading on NYSE

Fitch says Calpine exposure does not adversely affect public power sector

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  • The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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