Diverse and efficient fleet of gas-fired generation; Well positioned in gas-dominated markets such as California, Texas, and the Northeast; Financial profile that is resilient to downside risks and is free cash flow positive even under Standard&Poor's conservative price deck; Difficulty in permitting baseload assets should support heat rate recovery when the economy improves; Young, standardized fleet that provides operational cost advantages; Growth of renewables that may be a positive if backup generation is needed; and Gas and geothermal fleet that positions Calpine well to benefit from upcoming Environmental Protection Agency regulations. Weak merchant market conditions albeit with a significantly hedged position in the near term; Substantial exposure to gas prices and market heat rates in the longer term;
