Diverse and efficient fleet of gas-fired generation; Well-positioned in tightening markets such as California, Texas, and the Northeast; Tightening reserve margins, increasing construction costs, and high gas prices that should support cash flows over the next several years; Gas and geothermal fleet that positions Calpine well for potential climate change legislation; Young, standardized fleet that provides operational cost advantages; and 50% cash flow sweep that supports deleveraging. Substantial exposure to volatile gas prices and market heat rates; Primary role as a merchant generator, with hedges being mostly short term; and Significant leverage at about $436/kW. Calpine Corp.'s 'B' corporate credit rating was assigned at the time of the company's emergence from bankruptcy protection on Jan. 31, 2008. The $6 billion
