Calpine to Purchase 21 General Electric Turbines

SAN JOSE, Calif.-Calpine Corp., the nation’s fastest growing independent power producer, announced that it will purchase 21 model 7FB turbines from GE Power Systems.

The agreement marks the company’s first large volume turbine acquisition from GE and is an important component of Calpine’s five-year strategic plan to have 40,000 MW of generation on line by the end of 2004. Through this and other recently announced turbine procurement activities, Calpine has diversified its turbine portfolio so that all major U.S. turbine manufacturers support Calpine’s growth.

Calpine will take delivery of 12 turbines in 2003, with the remainder of the contract to be filled in 2004. When operated in a combined-cycle application, the total generating capacity of the 21 turbines is 5,600 MW.

“This purchase further ensures that Calpine is able to take advantage of its industry-leading position in project development,” said Doug Kieta, Calpine senior vice president-construction. “Calpine’s aggressive turbine procurement program enables the company to act decisively in announcing new power projects and enter new electricity markets across the country.”

“This order is further evidence that the U.S. is continuing to experience unprecedented demand for more efficient, more reliable and more environmentally friendly sources of power generation,” said Robert Nardelli, GE Power Systems president and CEO. “We are pleased that Calpine has placed their confidence in our products and in the ability of our people to deliver the most proven gas turbine technology available.”

GE’s current fleet of F technology gas turbines recently surpassed 3 million hours of operation around the globe. GE’s 7FB turbine is an upgrade of the current 7FA model and is designed for higher efficiency, lower life-cycle cost power generation. By employing this new technology, Calpine will continue to generate electricity competitively while consuming less natural gas and producing fewer emissions than a typical power plant of comparable size.