Calpine Adds 50 Megawatts to Morris, Ill. Power Plant; Company Signs Power Sales Agreement with Commonwealth Edison Company.

Business Editors/Energy & Environmental Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--March 30, 2000

Calpine Corporation (NYSE:CPN), one of the nation's leading independent power companies, today announced a 50-megawatt expansion of its 117-megawatt natural gas-fired, cogeneration power plant in Morris, Ill. Calpine also announced it has signed a power sales agreement to deliver approximately 100 megawatts of capacity from the Morris Cogeneration Facility to Commonwealth Edison Company ("COMED") through the end of 2000. COMED is currently purchasing 50 megawatts of electricity, and, upon completion of the expansion in June 2000, will take the second 50-megawatt segment.

To increase output, Calpine began installation of a steam turbine in the Morris facility in January 2000. With the steam turbine in place, the facility will operate in a combined-cycle configuration to maximize fuel efficiency, lower operating costs and reduce emissions on a per megawatt basis.

Calpine purchased an 80 percent interest in the Morris facility through its acquisition of Cogeneration Corporation of America, Inc. in December 1999. The Morris facility is located at Equistar Chemical's Morris, Ill. plant. The majority of the electricity and all of the steam produced from the plant are sold to Equistar Chemicals, L.P. under the terms of a long-term agreement that expires in 2023.

"Recent disruptions in the electricity markets in the Midwest -- including severe price spikes -- signal the need for new sources of clean, cost-competitive generation," stated Calpine Senior Vice President Diana Naylor. "The Morris expansion will help increase reliability for Equistar and will help meet growing power demand."

"With a vital product like electricity," continued Naylor, "customers demand the highest quality product at affordable prices. We appreciate COMED's confidence in Calpine's ability to meet their customers' needs."

Calpine Corporation is a leading independent power company dedicated to providing customers with reliable and competitively priced electricity and thermal energy. Calpine is active in 20 states, with headquarters in San Jose, Calif. and regional offices in Houston, Texas; Pleasanton, Calif.; and Boston, Mass. Calpine currently has approximately 17,000 megawatts of capacity in operation, under construction or in announced development -- enough energy to power approximately 17 million households. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN.

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) the assurance that the Company will develop additional plants, (iv) a competitor's development of a lower-cost generating gas-fired power plant or (v) 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.