SAN JOSE, Calif., July 17, 2001 — Calpine Corporation today signed two agreements that provide 1,000 megawatts of power for five years to Reliant Energy Services, Inc., a unit of Reliant Resources, Inc.

These power agreements provide the flexibility and reliability Reliant demands to meet their customers' energy needs. Calpine will serve Reliant's load from its Electric Reliability Council of Texas (ERCOT) system of modern, natural gas-fired power plants totaling approximately 2,700 megawatts of capacity. Calpine's unique systems approach to generation allows it to serve its customers from a variety of generation sources to best match its customers' energy profiles.

"As a result of deregulation, consumers will benefit from reliable wholesale service generated from clean and efficient, natural-gas fired power plants," said Carey Jordan, vice president of power marketing for Calpine's Central Region. "These transactions simulate Reliant owning a state-of-the-art 1,000 megawatt power plant — a product that is referred to by Calpine as a 'virtual unit.' This product enhances reliability, improves operational flexibility and eliminates maintenance responsibilities for Reliant."

The contracts will begin with the official start date of deregulation in ERCOT, which is expected to be January 1, 2002.

Calpine offers similar types of products to other customers in the ERCOT market. The Calpine portfolio permits creative product structures and the ability to be the low-cost solution provider to that market. Through its unique systems approach, Calpine can dispatch or cycle-down electricity from a variety of energy centers as necessary to ensure the most efficient operations. Therefore, Calpine can provide reliable energy to Reliant at the most competitive prices.

About Reliant Energy Services

Reliant Energy Services, based in Houston, Texas, is the energy trading and marketing arm of Reliant Resources (NYSE: RRI - news), which is a majority-owned subsidiary of Reliant Energy (NYSE: REI - news). Reliant Resources provides electricity and energy services to wholesale and retail customers in the U.S. and Europe. The company has approximately 18,000 megawatts of power generation capacity in operation, under construction or under contract in the U.S. Reliant Resources is one of only five companies to rank among both the ten largest power marketers and the ten largest natural gas marketers in North America. It also has wholesale trading and marketing operations and more than 3,400 megawatts of power generation in operation in Western Europe. At the retail level, Reliant Resources provides energy, Internet, data and telecommunications services. The company will serve approximately 1.7 million customers in Texas when the electricity market opens to full retail competition in January 2002.