1,000-MW gas-fired generator enters operations in North Texas

SAN JOSE, Calif., July 24, 2002 -- Calpine Corp. announced its Freestone Energy Center in Fairfield, Texas has entered operations.

The Freestone facility can generate more than 1,000 megawatts of electricity and is Calpine's first facility built in the northern part of the Electric Reliability Council of Texas market. It will serve a critical region that suffers from a lack of transmission into the area from the south.

"Freestone is our ninth facility in Texas and adds a tremendous boost to our asset base in this market," said Calpine Senior Vice President Diana Knox. "Calpine's portfolio approach gives us access to a highly efficient and diversified fleet of power plants, with the flexibility of a market-driven energy company. Customers benefit from our integrated system that provides low-cost, reliable power as well as ancillary services and other options."

The Freestone Energy Center generates electricity using four natural gas-fired combustion turbines in combination with two steam turbines. This combined-cycle technology is approximately 40 percent more efficient than old-technology gas-fired plants.

According to the Environmental Protection Agency's 2001 data, Calpine consistently outperforms the average Texas fossil-fueled power plant in curbing emissions of nitrogen oxide (NOx), carbon dioxide (CO2) and sulfur dioxide (SO2), thereby reducing the formation of ozone, greenhouse gases and acid rain.

Compared to the average Texas fossil-fueled power plant, Calpine's Freestone facility generates 89 percent less NOx, 50 percent less CO2, and nearly 100 percent less SO2 emissions.

Calpine's Texas power plants can generate enough electricity annually to power 4.1 million homes, while at the same time conserving natural gas resources. Using combined-cycle technology, each Calpine facility consumes 33 percent less fuel than the average Texas fossil-fueled power plant.

For Calpine's entire Texas portfolio, this fuel savings is equal to enough natural gas to serve an additional 2.8 million homes annually. Calpine's proactive standards for efficient electric power generation demonstrate a sound environmental philosophy for safeguarding Texas communities, resources and industry.

About Calpine
Based in San Jose, Calif., Calpine Corporation is an independent power company that is dedicated to providing customers with clean, efficient, natural gas-fired power generation. It generates and markets power through plants it develops, owns and operates, in 21 states in the United States, three provinces in Canada and in the United Kingdom. Calpine also is the world's largest producer of renewable geothermal energy, and it owns 1.3 trillion cubic feet equivalent of proved natural gas reserves in Canada and the United States. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN.

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