CPN Calpine Corp.

Calpine Signs One-Year Energy Agreement With Utility Choice Electric Calpine Helps Retail Energy Provider Serve Loads SAN JOSE, Calif., Dec. 2 /PRNewswire-FirstCall/ -- Calpine Corporation has signed a one-year agreement to supply varying amounts of electricity, up to a maximum of 155 megawatts, to Utility Choice Electric, Houston, Texas, beginning Dec. 1, 2003. Calpine, the largest independent power producer in Texas, will deliver clean, reliable electricity from its fully integrated system of energy-efficient power plants strategically located throughout the Electric Reliability Council of Texas (ERCOT). Utility Choice Electric is an independent retail electricity provider in Texas, supplying energy services principally to commercial, industrial and government-affiliated customers. "We welcome Utility Choice Electric as a new Calpine customer and look forward to expanding our relationship as their business grows," said David Itz, director of marketing and sales for Calpine. He added, "Power sales agreements like these leverage the breadth and flexibility of Calpine's portfolio in Texas, and allow Calpine to offer customized energy solutions for retail electricity providers and their customers." Utility Choice Electric is a privately owned retail electric provider that specializes in offering customers high quality and customized services at low electric rates. "Moving forward with Calpine under this mutually beneficial supply relationship will enhance our abilities to serve a larger portion of the Texas electric market," said Simon Melhem, chief commercial officer for Utility Choice Electric. For more information about Utility Choice Electric, visit http://www.uchoice.com/. Calpine is a fully integrated power company that owns and operates electricity generating facilities and natural gas reserves. The company generates power at plants it owns or leases in 21 states in the United States, three provinces in Canada and in the United Kingdom. Calpine also owns nearly 900 billion cubic feet equivalent of natural gas reserves, and focuses its marketing and sales activities on securing power contracts with load-serving entities. Calpine has in-depth expertise in every aspect of power generation from development through design, engineering and construction management, into operations, fuel supply and power marketing. Founded in 1984, Calpine is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, 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. You 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 laws and regulations, (ii) the results of proceedings before regulatory bodies or courts with jurisdiction over the project, and, (iii) other market responses of competitors,. You 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, including the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2002, updated on Form 8-K on October 23, 2003, and its quarterly report on Form 10-Q for the quarter ended September 30, 2003, which can 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: media, Meg Laidlaw, +1-713-830-8655, or investors, Lisa Poelle, +1-408-995-5115, ext. 1285, both of Calpine Corporation Web site: http://www.uchoice.com/ Web site: http://www.calpine.com/

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