Calpine Announces $1 Billion Credit Facility to Finance Construction Program.

SAN JOSE, Calif.--(BUSINESS WIRE)--July 26, 1999--

Calpine Corporation (NYSE:CPN), the San Jose, Calif.-based power company, today announced plans to enter into a $1 billion revolving construction credit facility with a consortium of banks, including Credit Suisse First Boston and The Bank of Nova Scotia as lead arrangers. CIBC World Markets and TD Securities will serve as co-arrangers. The company expects to finalize the credit facility during the third quarter of 1999.

"This construction facility will allow us to continue to roll out our successful development program of building a portfolio of competitively-priced power generation facilities throughout the U.S.," stated Robert Kelly, senior vice president-finance for Calpine.

The non-recourse credit facility will serve as the cornerstone of Calpine's development program and will be utilized to finance the construction of a diversified portfolio of state-of-the-art, natural gas-fired power plants. The four-year credit facility will be used initially to fund the completion of the Sutter, South Point, Magic Valley and Westbrook power plants currently under construction in California, Arizona, Texas and Maine, respectively. The construction facility will be refinanced in the longer-term capital markets prior to its four-year maturity.

Calpine Corporation is a leading independent power company dedicated to providing reliable and competitively priced electricity and thermal energy in key markets throughout the U.S. Calpine currently has 2,794 net megawatts of capacity in operation, 3,338 net megawatts under construction and 1,830 net megawatts in announced development in 12 states--enough energy to power nearly eight million households. Calpine was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information, please visit Calpine's website at www.calpine.com.

The matters discussed in this news release may be considered "forward looking" statements within the meaning of Section 27A of the Securities and Exchange Act of 1993, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of 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; actual results could differ materially from those indicated by such forward-looking statements. Among the important factors that could cause results to differ materially from those indicated by such forward-looking statements are: (i) that the information is of a preliminary nature and may be subject to further adjustments, (ii) risks associated with power plant development, (iii) changes in government regulation, (iv) general operating risks, (v) the dependence on third parties, (vi) the dependence on senior management and (vii) other risks identified from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.