CPN Calpine Corp.

ATLANTA, Aug. 29 /PRNewswire-FirstCall/ -- NewSouth Energy LLC, a subsidiary of Calpine Corporation (NYSE:CPN), announced today that its affiliate Calpine Energy Services, L.P. (CES), has entered into a long-term power supply agreement with Tampa Electric Company (TECO). TECO and its customers in the greater Tampa area will benefit from this clean, modern and reliable power source that will help meet TECO's future needs at peak times. NewSouth Energy is responsible for managing the marketing and sales of nearly 6,000 megawatts of modern, gas-fired power plants in the Southeast United States. NewSouth Energy, on behalf of CES, Calpine's trading and risk management subsidiary, reports that under the agreement between TECO and CES, CES will deliver up to 170 megawatts of peaking capacity and energy from the Osprey and the Auburndale Peaker Energy Centers, located at Calpine's Auburndale Energy Complex, in the form of a call option from May 1, 2006, through December 31, 2011. Tim Eves, vice president of marketing and sales for NewSouth Energy, said, "We are pleased to be able to provide this clean, reliable peaking product to TECO. We applaud TECO for making this resource procurement decision through a competitive bidding process that ensures consumers will receive the lowest cost energy possible for the future." About NewSouth Energy NewSouth Energy LLC, headquartered in Atlanta, Ga., serves wholesale power customers in all or parts of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas, and Virginia. NewSouth Energy is a subsidiary of Calpine Corporation. The company offers a wide range of cost-effective and environmentally responsible power generation, energy products and services. NewSouth Energy also has locations in Flora, Miss.; Tampa, Fla.; and Houston, Texas. 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) the timing and extent of deregulation of energy markets and the rules and regulations adopted on a transitional basis with respect thereto; (ii) the timing and extent of changes in commodity prices for energy, particularly natural gas and electricity; (iii) commercial operations of new plants that may be delayed or prevented because of various development and construction risks, such as a failure to obtain the necessary permits to operate, failure of third-party contractors to perform their contractual obligations or failure to obtain financing on acceptable terms; (iv) unscheduled outages of operating plants; (v) a competitor's development of lower cost generating gas-fired power plants; (vi) risks associated with marketing and selling power from power plants in the newly-competitive energy market; (vii) other risks identified from time-to-time in the Company's reports and registration statements filed with the SEC, including the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2004 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, which can also be found on the Company's website at http://www.calpine.com/. All information set forth in this news release is as of today's date, and the Company undertakes no duty to update this information. DATASOURCE: Calpine Corporation CONTACT: Tom Allen, +1-404-461-5030, or Karen Bunton, Investor Relations, +1-408-995-5115, ext. 1121, both of NewSouth Energy LLC Web site: http://www.calpine.com/

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