Court OKs Calpine power plant sale

San Jose, CA, Sept. 14, 2006 — Bankrupt power producer Calpine Corp. announced that it has received court approval to sell the 170-megawatt Dighton Power Plant, located in Dighton, MA, to BG North America LLC for approximately $90.2 million.

The company requested authorization from the bankruptcy court to sell the Dighton Power Plant as part of the court approved auction process in July 2006. The transaction, subject to certain regulatory approvals, is expected to close within the next 30 to 60 days.

“Selling our interest in the Dighton Power Plant is another step forward in our restructuring to emerge from Chapter 11 as a profitable, more competitive power company,” said Robert P. May, Calpine’s CEO.

As part of its restructuring program, when possible, Calpine seeks opportunities for its plant personnel to continue to operate and maintain those assets that are sold or transferred to new owners. For the Dighton sale, BG North America LLC will hire all the existing Calpine full-time employees of the Dighton Power Plant upon change of control.

In December of 2000, Calpine acquired the natural gas-fired, combined-cycle plant, which entered operations in July 1999. The plant currently supplies electricity to the New England power market.

For related articles on the Calpine Corp. story, please read these articles:

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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