Calpine Announces Additional Power Sales; Company Sells 85% of Output From Central U.S. Power Portfolio in 2000.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 1, 2000

Calpine Corporation (NYSE:CPN), a leading independent power company, today announced that it has sold approximately 85 percent of its central U.S. power portfolio for 2000. Power sales include the output from the company's operating portfolio in Texas, Illinois and Oklahoma -- totaling more than 1,300 megawatts -- along with the output from the 545-megawatt expansion of the Pasadena Power Plant in Texas, scheduled for start-up in June 2000. In addition, approximately 70 percent of all of this output has been contracted for 2001.

Calpine has sold its output under a variety of power sales agreements ranging from 1-to-20 years to several of the nation's leading wholesale power customers, including Aquila Energy, LG& Energy, Magic Valley Electric Cooperative, the trading arm of PG& Corporation, Reliant Energy-HL& and TXU Electric &Gas.

&uot;Having one of the country's most efficient power portfolios and the ability to operate these facilities as one regional operating system, provides Calpine a distinct competitive advantage,&uot; said Carey Jordan, Calpine's vice president of marketing-central region. &uot;In today's dynamic energy market the key to our success is matching our customers' needs with flexible and reliable energy solutions,&uot; added Jordan.

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 17 states, with headquarters in San Jose, Calif. and regional offices in Pleasanton, Calif.; Houston, Texas; and Boston, Mass. Calpine currently has approximately 13,300 megawatts of capacity in operation, under construction or in announced development -- enough energy to power more than 13 million households. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. To learn more about Calpine, visit its website at www.calpine.com.

This news release discusses certain matters that may be considered &uot;forward-looking&uot; 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 (&uot;the Company&uot;) 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.