40th Anniversary of U.S. Geothermal Energy Production; Calpine to Increase Electricity Generated at The Geysers by About 140 megawatts by 2005.

Business Editors/Energy Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 28, 2000

Calpine Corporation (NYSE:CPN), the nation's leading independent power company and world leader in the production of geothermal energy, is celebrating the 40th Anniversary of U.S. geothermal energy production today at The Geysers, the birthplace of the nation's commercial geothermal power industry.

With California reeling under soaring temperatures last week, the critical shortage of electricity throughout the state underscores the critical need for additional energy sources to help meet the state's insatiable demand for power.

"Calpine is committed to the long-term stewardship of The Geysers--one of our nation's most valuable natural resources. I am pleased to announce that since we consolidated steam field and power plant operations in 1999, Calpine is investing about $140 million over a five-year period to improve plant efficiencies and extend the life of this unique resource. Together, these improvements will increase the electricity generated at The Geysers by about 140 megawatts by 2005," said Pete Cartwright, Calpine President, Chief Executive Officer and Chairman. "In addition to our successful geothermal operations, which we are celebrating today, we are committed to repowering North America with the cleanest, most modern and efficient natural gas-fueled power plants available."

Calpine's program of developing and building modern plants is the largest in the country. Its goal is to have 40,000 megawatts of power plants--fueled by renewable geothermal steam and clean natural gas--in place by 2004.

"With skyrocketing oil prices, and an ever-increasing demand for electricity throughout America, expanding the role of geothermal energy to meet the nation's energy needs is crucial," said Bill Richardson, U.S. Secretary of Energy. "I congratulate Calpine on the 40th anniversary of commercial geothermal power production at The Geysers, and encourage the expanded role geothermal energy can play in meeting our country's future energy needs."

California is home to the world's largest clean, green, renewable geothermal energy source. Located about 90 miles northeast of San Francisco, in a 30-square-mile region in Sonoma and Lake counties in northern California, 21 geothermal power plants at The Geysers today generate about 1,000 megawatts of electricity--enough to meet the energy needs of about 1,000,000 homes. At The Geysers, wells are drilled to access steam from beneath the earth. The steam is sent via pipelines to turbines, which drive generators to produce electricity.

Calpine owns and operates 19 of the 21 geothermal power plants at The Geysers, and is the world leader in the production of geothermal power, with about 850 megawatts--roughly the equivalent output of a single nuclear power plant--in operation. Calpine also owns and operates a vast steam field operation there, where some 350 steam wells and about 80 miles of pipeline network supply naturally occurring steam to fuel the company's geothermal power plants.

Power facilities at The Geysers have been in commercial operation for 40 years, and Calpine has been active there since 1987. The company acquired its first interest in a power plant, a five-percent equity interest in the 20 megawatt Aidlin geothermal facility at The Geysers, in 1989.

Based in San Jose, Calif., Calpine Corporation is dedicated to providing customers with reliable and competitively priced electricity. Calpine is focused on clean, efficient combined-cycle, natural gas-fired generation and is the nation's largest producer of renewable geothermal energy. Calpine has launched the largest power development program in the U.S. To date, the company has approximately 25,700 megawatts of base load capacity and 4,700 megawatts of peaking capacity in operation, under construction and in announced development in 27 states and Alberta, Canada. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit its website at www.calpine.com.