CALPINE ANNOUNCES INITIAL DEVELOPMENT FOR NEW FACILITY AT FREESTONE ENERGY CENTER

(HOUSTON, Texas) – February 3, 2023 – Today, Calpine is commencing development efforts for a new ~425 MW peaking facility adjacent to our Freestone Energy Center in Freestone County, Texas. These development efforts are warranted in light of the Public Utility Commission’s recent adoption of a framework for implementing a Performance Credit Mechanism (PCM) designed to incent new generation.

We are encouraged that the PUC is acting to ensure Texas maintains a reliable power supply through market-based mechanisms rather than government handouts. Because the final design and implementation of the PCM will likely take a couple years, we also are encouraged that the PUC and ERCOT will be developing “bridge” solutions to create near-term incentives for building new dispatchable generation. Regulatory certainty on PCM will be critical as Calpine continues to move this project forward.