Calpine and Bechtel Receive California Energy Commission License to Construct Delta Energy Center.

Business Editors

PITTSBURG, Calif.--(BUSINESS WIRE)--Feb. 9, 2000

San Jose-based Calpine Corporation (NYSE:CPN) and San Francisco-based Bechtel Enterprises announced that the California Energy Commission (CEC) has approved plans to construct the Delta Energy Center in Pittsburg, Calif.

The $450 million, natural gas-fired facility will generate 880-megawatts of clean, reliable electricity for the greater Bay Area in mid-2002 -- in time to help offset anticipated system strains in northern California.

The CEC's 4-to-0 vote to approve Delta Energy Center's Application for Certification completes a stringent yearlong environmental review process. The CEC -- the lead state regulatory agency for the project -- determined that the Delta Energy Center will have no significant adverse environmental impacts. Calpine and Bechtel filed the application with the CEC in December 1998.

&uot;Delta Energy Center will help stem projected electrical supply shortfalls and help modernize California's aging and constrained electric power infrastructure,&uot; said Bob Hepple, Calpine vice president of project development and director of projects for the Calpine/Bechtel Bay Area power program. &uot;In addition, it will provide Californians with significant environmental and cost saving benefits.&uot;

&uot;On behalf of Calpine and Bechtel, I would like to commend the outstanding efforts of our project development team, led by Project Manager Doug Buchanan, and the support of the Pittsburg and Antioch communities,&uot; continued Hepple.

Bechtel will build the energy facility in an industrial area to the north of Highway 4 in Pittsburg, Calif. Construction is scheduled to begin in June 2000. The project will employ up to 250 local union workers during peak construction and 25-to-30 full time operations jobs.

Utilizing state-of-the-art environmental control technology, the Delta Energy Center will emit 90% less emissions than the average gas-fired utility power plant in the U.S. In addition, it will be 40% more fuel-efficient, significantly lowering costs and conserving natural resources.

Calpine will operate Delta Energy Center when it enters commercial operation. The facility will provide electricity and steam for use at the nearby Dow Chemical Company facility and will also power homes and businesses throughout Pittsburg and the greater Bay Area.

Based in San Jose, Calif., Calpine Corporation is a leading U.S. power company dedicated to providing customers with reliable and competitively priced electricity. Calpine currently has interests in approximately 14,000 megawatts of capacity in operation, under construction or in announced development in 18 states -- enough energy to power 14 million households. Calpine has headquarters in San Jose, Calif., with regional offices in Houston, Texas; Pleasanton, Calif.; and Boston, Mass. 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.

Bechtel Enterprises is the development, financing and ownership affiliate of Bechtel Group, Inc., a premier global engineer-contractor. It has developed more than 50 projects in the power generation, water and wastewater, transportation, pipeline and telecommunications sectors. Bechtel celebrated its centennial year of service in 1998 and has been a part of the San Francisco Bay Area since 1904. Bechtel has been at the center of energy development since the 1940's, having built more than 450 power stations with a total generating capacity exceeding 250,000 megawatts. Visit Bechtel's website at www.bechtel.com for more information.

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) 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.