Calpine Completes Acquisition of SkyGen Energy; Company to Increase Power Portfolio by up to 13,500 MW.

Business Editors/Energy Writers

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

Calpine Corporation (NYSE:CPN) today announced it has completed the acquisition of Northbrook, Ill.-based SkyGen Energy LLC (SkyGen Energy) from Michael Polsky and from Wisvest Corporation, a Wisconsin Energy Corp. affiliate, for $450 million, plus the assumption of certain obligations of SkyGen Energy. This acquisition will increase Calpine's natural gas-fired, modern power generation fleet by up to 13,500 net megawatts of capacity in key strategic power markets throughout the U.S., including a strong portfolio of cogeneration facilities with long-term power sales agreements. In addition, the company has acquired 34 General Electric 7 FA gas turbines to power its newly acquired development projects.

Founded in 1991 by Michael Polsky, SkyGen Energy is a leading developer, owner and operator of independent power projects in North America. Michael Polsky will serve as President of SkyGen and as a member of Calpine's Board of Directors. As a result of the acquisition Calpine has added to its portfolio three operating facilities, five projects under construction, 10 late-stage development facilities and 16 project development opportunities.

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 26,000 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.