Air Pollution Control Equipment Services

Calpine files Article X application for Wawayanda Energy Center

WAWAYANDA, N.Y., Aug. 24, 2001 — Calpine Corporation has filed a formal application under Article X (ten) of the New York State Public Service Law for the development of a proposed 540-MW electric generating facility to be located in the Town of Wawayanda, Orange County, New York.

Calpine publicly announced its intent to develop the Wawayanda Energy Center in March 2000 and filed a Preliminary Scoping Statement in July 2000, initiating the pre-application phase of New York State’s comprehensive regulatory review process.

According to Calpine project manager David A. Devine, “Experts agree that New York State requires a significant investment in new electric generating resources. Our project will help meet this need, and will have a positive effect on the local economy in many ways. As part of the Article X process, Calpine has conducted extensive environmental analyses, and we have demonstrated that our facility will be a very positive addition to New York State’s energy mix without adverse environmental or other impacts. In fact, bringing new sources of clean energy on line will eventually displace some of the power produced by the State’s older, less environmentally-friendly power plants.”

The proposed facility will use a combined-cycle design fueled exclusively by natural gas and includes a variety of environmental control technologies to further reduce air emissions. The facility will be among the cleanest sources of new power generation in the United States.

In terms of the State’s electric power needs, the Wawayanda Energy Center will utilize the most efficient electric generating technology available today and will sell reliable, competitively-priced and environmentally responsible supplies of electricity into the State’s wholesale power markets, helping to ensure that consumers pay the lowest possible cost for their electricity needs.

As required by State law, the Article X application addresses a broad range of environmental and siting matters including:

— Project design

— Location

— Fuel use

— Construction and operating conditions

— Air quality

— Water quality

— Water usage and discharge

— Aquatic resources

— Off-site noise levels

— Cultural resources and visual considerations

— Geology and seismology

— Land uses and local laws

— Vegetation and terrestrial ecology and

— Off-site facilities

Calpine hopes to obtain approval under Article X in time to begin construction in late 2002, in order to place the facility in commercial operation in 2004.

Further information about the proposed Wawayanda Energy Center can be found at: http://www.wawayanda-energy.com. Further information about Calpine can be found at http://www.calpine.com.

SOURCE: Calpine Corporation