Gas

Calpine announces 600-MW Inland Empire Energy Center

SAN JOSE, Calif., June 8, 2001 — Calpine Corporation announced plans to build, own, and operate a 600-megawatt electric generating facility to be located in southwestern Riverside County, California.

The proposed Inland Empire Energy Center will feed directly into Southern California Edison’s power grid and is intended to serve the rapidly growing counties of Riverside and San Bernardino. Construction of the $325 million facility is scheduled to begin in mid-2002, with commercial operation targeted for late 2004.

The facility will use two advanced technology General Electric combustion turbines in combined-cycle with a single steam turbine and will be fueled by natural gas. With its advanced emissions control system and configuration, the Inland Empire Energy Center will be significantly cleaner and more fuel efficient than the typical natural gas-fired power plant operating today.

“As a California-based company, we are extremely pleased to, yet again, move forward on a project such as this,” said Calpine’s Senior Vice President of Business Development, John King. “To date, Calpine has committed approximately $6 billion to the California energy market. With this industry-leading initiative to bring more than 12,000 megawatts of new generation to California, we believe Calpine has taken a significant step towards helping put an end to the ‘energy crisis.”‘

Calpine will manage all aspects of project development for the Inland Empire Energy Center, including engineering and design, construction, and operations. The project will interconnect to the local power grid via existing transmission lines adjacent to the site and will be fueled by a major gas line already serving the region.

“This project represents a cost-effective, near-term means for the Inland Empire to satisfy part of its power needs with locally produced electricity,” added King. “The facility’s location and design provides not only heightened energy independence and diversity for the region, but reliable access to the clean and affordable electricity we all require.”

Construction of the Inland Empire Energy Center will require as many as 300 workers. Upon completion, 20 to 25 skilled power professionals with a combined annual payroll in excess of $1 million will operate the facility. In addition to providing a clean, affordable, and reliable source of new, local power generation and a means for accelerating regional economic development, the facility also will emerge as one of the leading sources of tax revenue for Riverside County.

The Inland Empire Energy Center is Calpine’s tenth announced major power project being developed specifically for the California market. Already, Calpine has three California projects under construction, with the Sutter and Los Medanos Energy Centers scheduled to begin operation this month. The two projects’ combined 1,100-plus megawatt output represents the only large-scale power facilities coming online this summer in the state. The third Calpine project under construction, the 880-megawatt Delta Energy Center, is slated to be complete within a year. In total, Calpine has more than 8,100 megawatts of generation already in operation, construction, or announced development in California.

Based in San Jose, Calif., Calpine Corporation is dedicated to providing customers with reliable and competitively priced electricity. Calpine is focused on clean, efficient, natural gas-fired generation and is the world’s largest producer of renewable geothermal energy. Calpine has launched the largest power development program in North America. To date, the company has approximately 32,600 megawatts of base load capacity and 7,200 megawatts of peaking capacity in operation, under construction and in announced development in 29 states and Canada. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit its Website at www.calpine.com.