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Calpine to Acquire Champion Energy Marketing, Expanding Customer Channels in Texas and Northeastern U.S. through Addition of Well-Established Retail Electric Provider

(HOUSTON, Texas) – July 20, 2015 – Calpine Corporation (NYSE:CPN) and Champion Energy Marketing, LLC, announced today that they have entered into an agreement for Calpine to purchase Champion, one of the nation’s leading retail electric providers, for $240 million, subject to working capital adjustments. Based in Houston, Champion is expected to serve approximately 22 TWh of residential, commercial and industrial customer load in 2015, concentrated in Texas and the Northeast U.S. where Calpine has a substantial power generation presence.

“This highly accretive transaction is an extension of our deliberate efforts over the past several years to be closer to our end-use customers,” said Calpine’s President and Chief Executive Officer Thad Hill. “Champion’s presence in Texas and the Northeast makes it the ideal retail complement to our wholesale generation portfolio. Having built a brand known for its award-winning customer service, the Champion team is a welcome addition to the Calpine family.”

Champion will continue to operate under the Champion brand after the transaction closes. Champion’s residential and commercial customers will experience no disruption to service as a result of the transaction, and all existing customer contracts will be honored. David Tudor, Champion’s President and Chief Executive Officer, will remain in his leadership role at Champion, preserving continuity of customer care while continuing to advance growth efforts.

“Champion brings a strong track record of delivering value to retail customers. With the added strength of Calpine’s generation fleet, we are confident that we can continue to grow our business,” said Tudor.

Calpine will acquire the business from Champion Energy Holdings, a subsidiary of Crane Holding Companies, which owns a 75% interest, and EDF Trading North America, which owns a 25% interest. Calpine intends to fund the acquisition with cash on hand. The transaction, which is expected to close by the fourth quarter of 2015, is subject to customary closing conditions and approval from the Federal Energy Regulatory Commission.

About Calpine

Calpine Corporation is America’s largest generator of electricity from natural gas and geothermal resources. Our fleet of 82 power plants in operation or under construction represents nearly 27,000 megawatts of generation capacity. Serving customers in 18 states and Canada, we specialize in developing, constructing, owning and operating natural gas-fired and renewable geothermal power plants that use advanced technologies to generate power in a low-carbon and environmentally responsible manner. Our clean, efficient, modern and flexible fleet is uniquely positioned to benefit from the secular trends affecting our industry, including the abundant and affordable supply of clean natural gas, stricter environmental regulation, aging power generation infrastructure and the increasing need for dispatchable power plants to successfully integrate intermittent renewables into the grid. We focus on competitive wholesale power markets and advocate for market-driven solutions that result in nondiscriminatory forward price signals for investors. Please visit www.calpine.com to learn more about why Calpine is a generation ahead – today.

About Champion
www.championenergyservices.com

Houston-based Champion Energy Services is one of the fastest-growing and largest retail electric providers (REPs) in the nation and one of the top REPs never to have been affiliated with a utility. Champion Energy currently serves residential, governmental, commercial and industrial customers in deregulated electric energy markets in Texas, Illinois, Pennsylvania, and New Jersey; governmental, commercial and industrial customers in Ohio, Maryland, New York, Delaware, District of Columbia and Massachusetts; natural gas customers in Illinois. The company has ranked "Highest in Residential Customer Satisfaction with Retail Electric Service, Four Years in a Row" according to the J.D. Power and Associates 2010-2013 Texas Residential Retail Electric Provider Customer Satisfaction Studies℠. The company currently serves more than 2 million residential customer equivalents (RCE), with a peak load near 4,000 megawatts. PUCT No. 10098, PA PUC license A-2009-2124113, Ohio PUC certificate 09-166E(1), Illinois (ICC) Docket 10-0168, New Jersey BPU license ESL-0082, Maryland IR-2196, Delaware (PSC) Docket No. 13-262, District of Columbia EA 2013-14-3 and Maine Docket No. 2015-00076.

Forward-Looking Information

In addition to historical information, this release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “believe,” “intend,” “expect,” “anticipate,” “plan,” “may,” “will,” “should,” “estimate,” “potential,” “project” and similar expressions identify forward-looking statements. -more- Such statements include, among others, those concerning expected financial performance and strategic and operational plans, as well as 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. Please see the risks identified in this release or in Calpine’s reports and registration statements filed with the Securities and Exchange Commission, including, without limitation, the risk factors identified in its Annual Report on Form 10-K for the year ended Dec. 31, 2014. These filings are available by visiting the Securities and Exchange Commission’s website at www.sec.gov or Calpine’s website at www.calpine.com. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. Many of these factors are beyond our ability to control or predict. Our forward-looking statements speak only as of the date of this release. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and, other than as required by law, Calpine undertakes no obligation to update any such statements, whether as a result of new information, future events, or otherwise.

Strategic and Financial Highlights

  • Integrates full-scale retail electric sales platform
  • Provides additional customer outlets for wholesale power generation portfolio
  • Immediately accretive to Adjusted Free Cash Flow Per Share

Contacts

Media Relations:

Brett Kerr
713-830-8809
brett.kerr@calpine.com

Investor Relations:

Bryan Kimzey
713-830-8775
bryan.kimzey@calpine.com