Calpine's Pastoria Power Plant in Southern California Online

SAN JOSE, Calif., May 5 /PRNewswire-FirstCall/ -- Calpine Corporation's Pastoria Energy Center has begun operation and is now supporting the energy-scarce Southern California market with 250 megawatts of electricity. Next month, Phase II will be completed, bringing a combined total of 750 megawatts to Southern California in time for peak summer power demand.

Thirty miles south of Bakersfield, Pastoria is located on property leased from the Tejon Ranch Corporation and interconnects to the Southern California Edison transmission system. The facility is fueled with natural gas and will produce power equivalent to the demand of almost 600,000 California households.

"California energy officials expect record power use again this summer and the Pastoria Energy Center is coming online just in time," said Calpine's Vice President of Marketing & Sales David Lewis. "Demand for electricity in California is growing by almost four percent annually, and the location of the Pastoria power plant will provide megawatts where they are needed most."

In a report issued this spring, the California Independent System Operator (California ISO) predicts record power demand will occur in July and August, eclipsing last year's demand record by more than 1,000 megawatts. The California Energy Commission has issued similar projections and expressed concerns about power supplies as well as transmission constraints.

"Southern California, in particular, may experience tight supplies of electricity during the upcoming peak electricity demand season and that is why the California ISO welcomes any resource coming online prior to the hot days of summer," said California ISO President and CEO Yakout Mansour. "Along with the Flex Your Power NOW! conservation bulletins, new power plants and transmission upgrades will help us meet demand this summer."

The Pastoria Energy Center makes use of state-of-the-art turbine technology and the project's "combined-cycle" design allows Pastoria to consume up to 30 percent less natural gas as compared to older power plants in the area. This improvement in operating efficiency means that less fuel is burned and less greenhouse gas is emitted per megawatt generated compared to coal-fired or older gas-fired power plants.

Calpine Energy Services will market electricity from the facility through a variety of long, intermediate, and short-term contracts. Prospective buyers include Southern California Edison as well as energy service providers, retail customers, and municipal utilities.

Pastoria is one of two Calpine power plants that will come online in California this summer. Calpine's Metcalf Energy Center in San Jose will begin operation in June, supplying more than 600 megawatts to Pacific Gas & Electric's transmission system. Together, the projects will increase Calpine's California project portfolio to 41 power plants and more than 5,250 megawatts.

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, three Canadian provinces and the United Kingdom. In 2004, Calpine delivered approximately 3.5% of all electricity consumed in the United States. 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. Calpine was founded in 1984. It is included in the S&P 500 Index 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) 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; and (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 Dec. 31, 2004, 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.