Compressed air energy storage (CAES) is a commercial, utility-scale technology that provides long-duration energy storage with fast ramp rates and good part-load operation. It is a promising storage technology for balancing the large-scale penetration of renewable energies, such as wind and solar power, into electric grids. This study proposes a CAES-CC system, which is based on a conventional CAES combined with a steam turbine cycle by waste heat boiler. Simulation and thermodynamic analysis are carried out on the proposed CAES-CC system. The electricity and heating rates of the proposed CAES-CC system are lower than those of the conventional CAES by 0.127 kWh/kWh and 0.338 kWh/kWh, respectively, because the CAES-CC system recycles high-temperature turbine-exhausting air. The overall efficiency of the CAES-CC system is improved by approximately 10% compared with that of the conventional CAES. In the CAES-CC system, compressing intercooler heat can keep the steam turbine on hot standby, thus improving the flexibility of CAES-CC. This study brought about a new method for improving the efficiency of CAES and provided new thoughts for integrating CAES with other electricity-generating modes.