CPN Calpine Corp.

Largest Power Plant to Help Relieve Power Deficiencies in Silicon Valley SAN JOSE, Calif., Sept. 15 /PRNewswire-FirstCall/ -- California energy, environmental and community leaders are joining Calpine Corporation (NYSE:CPN) today to dedicate the 600-megawatt Metcalf Energy Center -- the largest addition of electric generating capacity in the history of the energy- deficient Silicon Valley. Calpine powered up its natural gas-fired power plant in San Jose, Calif. in May in time to meet this summer's peak demand. This new, local generation resource will improve the reliability and quality of power to consumers in Silicon Valley and the greater San Francisco Bay Area, and its fuel-efficiency will ultimately reduce costs to consumers while conserving valuable natural gas resources. Joining Peter Cartwright, Calpine Founder, Chairman and Chief Executive Officer, in speaking at today's ceremony are: -- Michael Peevey, President, California Public Utilities Commission -- Ron Gonzales, Mayor, San Jose -- Ken Wiseman, Chair, California Independent System Operator Board of Governors -- William Keese, former Chairman, California Energy Commission -- Ralph Cavanagh, Co-Director - Energy Program, Natural Resources Defense Council -- Margo Sidener, Executive Director, American Lung Association of Santa Clara - San Benito Counties -- Sam McIntosh, Senior Manager, Calpine Construction Management Company "The Metcalf Energy Center represents a major milestone for California, Silicon Valley and Calpine," stated Calpine Chief Executive Officer and President Peter Cartwright. "Not only is it the first major power plant designed to help avert energy shortfalls in San Jose and Silicon Valley, it reflects and validates the benefits that advanced power generation and emission controls technologies can and will bring to California and North America. Metcalf is a tribute to the entrepreneurial spirit of this Valley, its community, and the dedicated Calpine people and project personnel who made this flagship project a reality." Powering Silicon Valley and California Calpine is the only company to bring on line major power plants in the generation-short California power market in more than two years. Along with Metcalf, Calpine commissioned its 750-megawatt Pastoria Energy Center in Bakersfield in May of this year. This natural gas-fired power plant is currently serving the record power needs of Southern California. "The Metcalf Energy Center is the right plant, at the right place, at the right time," said Ken Wiseman, Chair of the Independent System Operator Board of Governors. "California is adding half a million people a year. The economy is on the move, and the demand for energy is growing. We need high- efficiency, low-emission power plants like Metcalf, built near the load, to meet that growing demand." Calpine developed and built Metcalf over a six-year period with more than 700 construction workers, working 1.2 million man-hours. Metcalf presently generates electricity to supply more than half-a-million local homes, and in keeping with Silicon Valley's technological leadership, it represents one of the most fuel-efficient and cleanest natural gas-fired power plants ever constructed. During development, the facility won unprecedented support from legislative, regulatory, environmental and community leaders, including the local chapters of the Sierra Club and the American Lung Association, as well as the State Assembly and the Santa Clara County Board of Supervisors. Today, Calpine's California project portfolio includes 41 natural gas- fired and geothermal power plants and more than 5,250 megawatts of capacity. Its power portfolio currently supplies approximately 10 percent of California's electricity, and Calpine's Geysers operations in Northern California lead the state and world in renewable geothermal power production. Conserving Natural Gas -- Protecting the Environment Calpine designed and engineered Metcalf employing advanced combined-cycle technology, best available emissions controls and reclaimed water for cooling -- eliminating the need to release more than three million gallons per day of recycled water into the San Francisco Bay. Combined-cycle turbine technology allows Metcalf to consume up to 30 percent less natural gas as compared to older power plants in the region. This improvement in operating efficiency means that less fuel is burned and less greenhouse gases are emitted per megawatt of generation when compared to coal-fired or older gas-fired power plants. Compared to the average U.S. fossil-fired power plant, Metcalf, on a per megawatt-hour basis, emits significantly less emissions: -- 99.9% less acid rain-producing sulfur dioxide -- 98.1% less smog-producing nitrogen oxides -- 93.9% less particulate matter -- a contributor to respiratory problems -- 57% less carbon dioxide -- the principal greenhouse gas -- And no mercury -- a neurotoxin linked to serious health problems About Calpine Calpine Corporation is a North American power company dedicated to providing electric power to customers from clean, efficient, natural gas- fueled and geothermal power plants. The company generates power at plants it owns or leases in 21 states in the United States and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, natural gas, gas turbine components and services, energy management, and a wide range of power plant engineering, construction and operations services. The company is included in the S&P 500. Calpine was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information, visit http://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) 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) unscheduled outages of operating plants; (iv) a competitor's development of lower cost generating gas-fired power plants; (v) risks associated with marketing and selling power from power plants in the newly-competitive energy market; and (vi) 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 Dec. 31, 2004, and Quarterly Report on Form 10-Q for the three months ended June 30, 2005, which may 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. Address: One Blanchard Rd., P.O. Box 13190, San Jose, CA 95013-3190 Office Phone: 408-361-4955 From the San Jose Area: Take 101 South or 85 South, going toward Morgan Hill. Take the Bernal Road exit. Turn right on Bernal, stay in the right-hand lane and you will veer to the right, following the sign to Monterey Road. Turn left at the stoplight onto Monterey Road. Travel 1 mile south on Monterey road, past the lake, past Metcalf Road, and past the substation until you reach the next stoplight which will be Blanchard Road. Turn right onto Blanchard Road. Turn right at the entrance to the power plant. Check in at the security station. From the Morgan Hill Area: Take 101 North to the Bailey Road Exit. Turn left and go to Monterey Road. Turn right. Drive north about 1 mile on Monterey Road. Turn left at the stoplight onto Blanchard Road. Turn right at the entrance to the power plant. Check in at the security station. DATASOURCE: Calpine Corporation CONTACT: Media Relations: Kent Robertson, +1-408-621-1447, or Katherine Potter, +1-408-398-6611, or Investor Relations: Karen Bunton, +1-408-995-5115, ext. 1121, all for Calpine Corporation Web site: http://www.calpine.com/

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