Calpine Receives Investment Grade Upgrade by Duff & Phelps.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--April 13, 2000

Calpine Corporation (NYSE:CPN), the San Jose, Calif.-based independent power company, announced today that Duff & Phelps Credit Rating Co. (DCR) has upgraded Calpine's senior unsecured debt to investment grade "BBB-" from "BB+" and convertible preferred securities to "BB" from "BB-". Calpine's rating outlook is stable.

John W. O'Connor, vice president for DCR, stated, "Calpine has established itself as one of the premier worldwide generating companies. With a high quality, increasingly efficient diversified asset base, the company has built a solid foundation to capitalize on its first-mover advantage in the U.S. power markets."

DCR's upgrade was also attributed to Calpine's outstanding natural gas-fired and geothermal plant performance, and the company's unique, integrated approach that focuses on developing a low-cost generation portfolio.

"As one of the lowest cost suppliers in a commodity sensitive market, coupled with a system-wide approach to managing and marketing its asset base, Calpine has positioned itself to capture a higher degree of margins than most of its competitors," continued O'Connor. "In 2000, approximately 90 percent of Calpine's cash flow will be derived from contractual power sales with strong investment-grade entities, which provide a good degree of cash flow surety."

In 1999 alone, Calpine increased its generating portfolio by 62 percent to 3,355 megawatts, and launched the largest power plant construction program in the nation. The company has set a portfolio target of 25,000 net Calpine base-loaded megawatts in operation by the end of 2004. The company has 13 projects under construction and 14 in announced development totaling approximately 13,600 megawatts.

Duff & Phelps Credit Rating Co. is a leading global rating agency with 34 local market offices providing ratings and research on debt issues and insurance claims paying ability in more than 50 countries.

Calpine Corporation is the nation's leading independent power company dedicated to providing customers with reliable and competitively priced electricity and thermal energy. Calpine is active in 20 states, with headquarters in San Jose, Calif. and regional offices in Houston, Texas; Pleasanton, Calif.; and Boston, Mass. Calpine currently has approximately 17,000 megawatts of capacity in operation, under construction or in announced development -- enough energy to power approximately 17 million households. 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.

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) 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.