NEW YORK (Standard&Poor's) April 5, 2006--Standard&Poor's Ratings Services said today that Calpine Corp.'s (D/--/--) announced $100 million expense reduction through planned asset sales and headcount reductions may improve the recovery on outstanding debt issues, but does not affect the rating on the company, which is in bankruptcy proceedings. Calpine has identified 20 non-strategic power plants for potential sale. These plants are no longer considered to be core operations due to financial performance, market prospects, and strategic fit. Calpine plans to sell most of these plants by the end of 2006. In addition, Calpine is closing three offices and will reduce its workforce by 775 employees by year-end 2006; about 100 employees will be affected immediately.
