CPN Calpine Corp.

ATLANTA, Ga., Sept. 20 /PRNewswire-FirstCall/ -- NewSouth Energy LLC, a subsidiary of Calpine Corporation (NYSE:CPN), has announced that its Calpine Energy Services, L.P. (CES) affiliate has signed an agreement for the Decatur Energy Center to supply the Tennessee Valley Authority (TVA) with more than 700 megawatts of power for two years. This agreement, which became effective September 8, gives TVA full dispatch rights of the plant, including Automated Generation Control, allowing operational flexibility for TVA to provide power to their system as needed. TVA is the nation's largest public power utility and provides power to large industries and 158 power distributors that serve approximately 8.6 million consumers in seven southeastern states. NewSouth Energy is responsible for managing a network of nearly 6,000 megawatts of clean, modern natural gas-fired power plants in the southeast United States. Tim Eves, Vice President for NewSouth Energy Marketing and Sales said, "We are pleased to have constructed this win-win agreement that provides TVA and its customers with a dependable and economical supply alternative." NewSouth reports that under the agreement between TVA and CES, the Decatur Energy Center located in Decatur, Ala., will deliver electricity through the summer season of 2007. The plant can generate up to 850 megawatts of electricity using natural gas-fired combustion turbines in combination with a steam turbine, making it up to 40% more fuel-efficient than older-technology plants. And the plant emits 93 percent less smog-producing nitrogen oxides than the average U.S. fossil-fueled power plant. 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 (NYSE:CPN). 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: NewSouth Energy LLC CONTACT: Tom Allen of NewSouth Energy, +1-404-461-5030; or Karen Bunton, Investor Relations of Calpine Corporation, +1-408-995-5115, ext. 1121 Web site: http://www.calpine.com/

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