Calpine Announces Second Energy Center in Alabama.

Business Editors/Energy Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 24, 2000

Proposed Hillabee Energy Center to Provide 700 Megawatts of

Clean Energy in 2003

Calpine Corporation (NYSE: CPN), the national independent power company, today announced plans to develop a $380 million natural gas-fired electric generating facility in Tallapoosa County, Ala. north of Alexander City. The proposed Hillabee Energy Center will generate 700 megawatts of competitively priced electricity for Southeast wholesale customers beginning in early 2003.

The Hillabee facility is Calpine's second investment in the Alabama power market. The company previously announced plans for a similar natural gas-fired energy facility in Decatur, Ala. at Solutia, Inc.'s. chemical facility. Steam and a portion of the power from that facility will be sold to the Solutia chemical facility, with the balance of electricity being sold in the wholesale market. Both facilities will help meet growing demand for electricity in the Southeastern U.S.

Calpine Senior Vice President Bob Alff stated that, "The Hillabee facility further strengthens Calpine's commitment to the dynamic Southeast power market." Alff added that, "Our Hillabee project is ideally located on a large site, adjacent to high-capacity gas and electric transmission infrastructure."

"We sincerely appreciate the warm welcome we have received from local officials in Alexander City and Tallapoosa County," continued Alff. "Together, the Hillabee and Decatur energy centers will help power 1.4 million households with clean, reliable electricity."

Consistent with the company's hands-on, fully integrated approach to power generation, Calpine will manage all aspects of project development for the Hillabee Energy Center, including engineering and design, construction, operations, fuel supply and power marketing. Permitting efforts are underway and Calpine expects to begin construction in the first quarter of 2001.

Calpine will utilize combined-cycle turbine technology to ensure maximum fuel efficiency, and the plant will be equipped with advanced emission control systems to help safeguard the environment. Calpine will install two Siemens-Westinghouse 501G series combustion turbines and a single steam turbine, in combined cycle.

Based in San Jose, Calif., Calpine Corporation is a leading independent power company dedicated to providing customers with reliable and competitively priced electricity. Calpine is the nation's largest producer of renewable geothermal energy and is focused on clean, efficient combined-cycle natural gas-fired generation. Nationally, Calpine currently has a combined interest in more than 15,500 megawatts of electric generating capacity in operation, under construction or announced development in 19 states across the country--representing the largest power development program in the U.S. 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 http://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 or (vi) 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.