HOUSTON & SAN JOSE, Calif.--(BUSINESS WIRE)--May 30, 2008--Calpine
Corporation (NYSE: CPN) today announced that its Board of Directors,
after thoroughly reviewing the proposal from NRG Energy, Inc. (NYSE:
NRG) in its letter of May 14, 2008 and in consultation with its
financial and legal advisors, has unanimously determined that NRG's
proposal is inadequate and materially undervalues the Company's unique
asset portfolio and future prospects.
Calpine indicated that its Board has authorized its advisors to
contact NRG and its advisors to ascertain whether there is a basis for
discussions between the two companies to explore a business
combination.
The Company noted that there can be no assurance that a
transaction will result from any discussions, if held. The Company
does not intend to disclose developments with respect to any such
discussions.
About Calpine
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. Please visit http://www.calpine.com for more information.
Forward Looking Information
In addition to historical information, this release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act and Section 21E of the Exchange Act. Words such as
"believe," "intend," "expect," "anticipate," "plan," "may," "will" and
similar expressions identify forward-looking statements. Such
statements include, among others, those concerning expected financial
performance and strategic and operational plans, as well as all
assumptions, expectations, predictions, intentions or beliefs about
future events. You 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)
Calpine's ability to implement its business plan; (ii) financial
results that may be volatile and may not reflect historical trends;
(iii) seasonal fluctuations of results and exposure to variations in
weather patterns; (iv) potential volatility in earnings associated
with fluctuations in prices for commodities such as natural gas and
power; (v) ability to manage liquidity needs and comply with covenants
related to the Exit Credit Facility and other existing financing
obligations; (vi) Calpine's ability to complete the implementation of
its Plan of Reorganization and the discharge of its chapter 11 cases
including successfully resolving any remaining claims; (vii)
disruptions in or limitations on the transportation of natural gas and
transmission of electricity; (viii) the expiration or termination of
power purchase agreements and the related results on revenues; (ix)
risks associated with the operation of power plants including
unscheduled outages; (x) factors that impact the output of Calpine'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; (xi) risks associated with power project
development and construction activities; (xii) ability to attract,
retain and motivate key employees including filling certain
significant positions within Calpine's management team; (xiii) ability
to attract and retain customers and counterparties; (xiv) competition;
(xv) risks associated with marketing and selling power from plants in
the evolving energy markets; (xvi) present and possible future claims,
litigation and enforcement actions; (xvii) effects of the application
of laws or regulations, including changes in laws or regulations or
the interpretation thereof; and (xviii) other risks identified from
time-to-time in Calpine's reports and registration statements filed
with the SEC, including, without limitation, the risk factors
identified in its Annual Report on Form 10-K for the year ended
December 31, 2007. Actual results or developments may differ
materially from the expectations expressed or implied in the
forward-looking statements and Calpine undertakes no obligation to
update any such statements. Unless specified otherwise, all
information set forth in this release is as of today's date and
Calpine undertakes no duty to update this information. For additional
information about Calpine's chapter 11 reorganization or general
business operations, please refer to Calpine's Annual Report on Form
10-K for the fiscal year ended December 31, 2007, and any other recent
Calpine report to the Securities and Exchange Commission. These
filings are available by visiting the Securities and Exchange
Commission's website at http://www.sec.gov or Calpine's website at
http://www.calpine.com.
CONTACT: Media Relations:
Calpine Corporation
Mel Scott, 713-570-4553
scottm@calpine.com
or
Joele Frank, Wilkinson Brimmer Katcher
Joele Frank/Ed Trissel, 212-355-4449
or
Investor Relations:
Calpine Corporation
Andre Walker, 713-830-8775
Andrew@calpine.com
SOURCE: Calpine Corporation
