As part this innovative new structure, Calpine has created a new entity, Calpine Energy Management (CEM), to facilitate short-term gas and power purchases and sales ranging from the hourly market up to one month ahead. It is CEM that has entered into the letter of credit facility, which is rated Aa3/AA– by Moody’s and Standard & Poor’s respectively.

Deutsche Bank will guarantee CEM’s power and gas obligations by issuing letters of credit, said Calpine, and receivables from power sales will