Calpine Corporation Celebrates Groundbreaking for 500-Megawatt Los Medanos Energy Center in Pittsburg, Calif.; First Deregulated Power Plant to be Licensed in the Bay Area.

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 30, 1999--

Calpine Corporation (NYSE:CPN), the San Jose, Calif.-based independent power company, will host a groundbreaking celebration on December 1 in Pittsburg, Calif. to mark the start of construction of a modern 500-megawatt electric generating facility.

The natural gas-fired Los Medanos Energy Center will be built on a parcel of land adjacent to USS-POSCO Industries' facility, and will supply steam and electricity to USS-POSCO and the California power exchange. The new facility will be equipped with state-of-the-art technology and advanced emissions control equipment. It will be one of the cleanest natural gas-fired plants in the nation. The energy center is expected to begin commercial operations in summer 2001.

The groundbreaking will begin with remarks from Calpine President, Founder and CEO Peter Cartwright. Pittsburg Mayor Federal Glover, State Senator Richard Rainey, Assemblyman Tom Torlakson, Contra Costa County Supervisor Joe Canciamilla and other local dignitaries are among the scheduled speakers. Lunch will follow.

The event will take place Wednesday, December 1, at 11:00 a.m. at the construction site, located adjacent to USS POSCO Industries' facility on Third Street in Pittsburg. From Highway 4, take the Railroad Avenue exit. Go north on Railroad, and then make a right on Third Street. The site is on the right.

Based in San Jose, California, Calpine Corporation is a leading independent power company dedicated to providing customers with reliable and competitively priced electricity. Calpine currently has one of the largest electric power development programs in the U.S., with more than 10,800 megawatts of capacity in operation, under construction or in announced development in 15 states -- enough energy to power nearly eleven 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.