CPN Calpine Corp.

HOUSTON, Aug. 26 /PRNewswire-FirstCall/ -- Calpine Energy Services, L.P. (CES) today announced that it has entered into new services agreements with two power generation organizations to provide marketing, scheduling and other energy management services. CES, a wholly owned subsidiary of Calpine Corporation (NYSE:CPN), is responsible for managing the power and gas requirements for Calpine's 27,000-megawatt power generation fleet. In addition, CES and its affiliates provide independent power generators, public utilities, retail energy providers, industrial manufacturers, natural gas producers and merchant banks with a wide range of services, including power and natural gas marketing and scheduling, settlements, position management, asset optimization, risk management consulting, thermodynamic modeling, asset valuation and pricing. Over the past 18 months, CES and its affiliates have grown their merchant services business to serve 24 third-party customers, representing roughly 4,000 megawatts of generation and load and approximately 112,000 MMBtu per day of natural gas. This customer base is geographically diverse across North America. Project Orange Associates LLC (POA), an affiliate of TransGas Energy Systems LLC, and the Greater Toronto Airports Authority (GTAA) are the newest CES customers. POA has entered into a one-year agreement with CES to provide energy management services for the Project Orange Cogeneration Plant on the campus of Syracuse University, Syracuse, N.Y. Electricity from the 80-megawatt, gas- fired plant is sold into the New York Independent System Operator (NYISO), which ensures the reliable, safe and efficient operation of the State's major transmission system and administers an open, competitive and nondiscriminatory wholesale market for electricity in New York State. Steam from the plant, which derives its name from the university's nickname and school colors, is sold under long-term contract to Syracuse University. As agent for POA, CES will provide a full range of energy services, including energy, capacity and ancillary services marketing along with power and natural gas scheduling. On behalf of the customer, CES will leverage its personnel and systems, including its 24-hour desk, to interface with NYISO. "Calpine Energy Services is excited to provide Project Orange Associates with our years of experience in every aspect of managing gas-fired cogeneration power plants in New York. Our goal is to help Project Orange Associates benefit from what we do best -- help customers get reliable performance and enhance their bottom line," said Patrick Wade, director, CES merchant services. Project Orange Associates President Adam Victor stated, "After an intensive search for the right energy manager, Calpine was the clear choice. We look forward to working with Calpine and the NYISO to help insure that a vibrant and reliable electric infrastructure and market operates in New York." In Canada, GTAA selected CES to provide energy management services at its new 117-megawatt cogeneration plant located at Toronto's Pearson International Airport. The airport will utilize the plant's electricity and steam with the excess generation sold into Ontario's Independent Electricity System Operator (IESO). CES services for GTAA will include energy, capacity and ancillary services marketing along with power and natural gas scheduling. CES also will leverage its personnel and systems to interface with Ontario's IESO and other market participants. Wade noted, "GTAA's power plant will provide critical redundancy of electrical and thermal energy for Canada's largest airport, Toronto's Pearson International, which handles between 80,000 and 100,000 passengers per day and more than 40 percent of all air cargo in Canada. CES is pleased to have been selected to help manage GTAA's plant to ensure its reliable operation." Don Alarie, GTAA director of engineering, said, "In addition to the obvious energy supply advantages -- not only to the GTAA but also to the citizens of the Province of Ontario -- the GTAA cogeneration plant further illustrates the commitment of GTAA to the environment through its ISO 14001 certification. GTAA welcomes Calpine Energy Services and its strong energy management skills to the GTAA cogeneration plant operation team." About Calpine Energy Services Beginning in 1999, with a unique vision for managing merchant generation risk, Calpine Energy Services built a scalable infrastructure of people, systems and processes that is today recognized as a leader in the energy services industry. On behalf of both Calpine and unaffiliated third parties, CES manages more than 30,000 megawatts of power generation assets and manages over 2.5 Bcf/day of natural gas and pipeline capacity. As an energy management services provider, CES assists customers with commercial services such as marketing and physical liquidation of power and gas assets, operational services including scheduling and settlements, and a variety of other customized energy management solutions. About Calpine A major power company, Calpine Corporation supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and three Canadian provinces. Its customized energy products and services include wholesale and retail energy, power plant and turbine parts services, as well as energy management capabilities. Calpine was founded in 1984. It is listed on the S&P 500 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information, visit http://www.calpine.com/. DATASOURCE: Calpine Corporation CONTACT: media, Meg Laidlaw, +1-713-830-8655, or investors, Karen Bunton, +1-408-995-5115, ext. 1121, both of Calpine Web site: http://www.calpine.com/

Copyright