Calpine Acquires Remaining Interest in Agnews Facility.

Business Editors/Energy Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 18, 2000

Calpine Corporation (NYSE:CPN), the nation's leading independent power company, today announced that it has acquired the remaining 80 percent interest in the Agnews cogeneration facility, a 29-megawatt natural gas-fired, combined-cycle facility located in San Jose, Calif., from GATX Capital Corporation.

"Acquiring this interest will allow us to further enhance output and operational efficiency of the Agnews facility, and enable us to operate all of our facilities as part of an integrated power system," said Jake Rudisill, Calpine senior vice president-western region.

Calpine first acquired a twenty-percent equity interest in the Agnews facility in 1990. The plant currently sells an average of 28 megawatts of electricity to Pacific Gas and Electric Company, and one megawatt to the State of California's Agnews Developmental Center. Additionally, the facility supplies an average of 5,000 pounds per hour of low-pressure steam to the Developmental Center under a long-term energy services agreement.

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.

This news release discusses certain matters that may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or current expectations of Calpine Corporation (the "Company") and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results such as, but not limited to, (i) changes in government regulations and anticipated deregulation of the electric energy industry; (ii) commercial operations of new plants that may be delayed or prevented because of various development and construction risks, such as a failure to obtain financing and the necessary permits to operate or the failure of third-party contractors to perform their contractual obligations (iii) cost estimates are preliminary and actual cost may be higher than estimated, (iv) the assurance that the Company will develop additional plants, (v) a competitor's development of a lower-cost generating gas-fired power plant, (vi) receipt of regulatory approvals or (vii) the risks associated with marketing and selling power from power plants in the newly competitive energy market. Prospective investors are also referred to the other risks identified from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.