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Proposed 1,100 MW facility to bring new source of energy to Northern California’s Central Valley

SAN JOAQUIN, Calif., Nov. 1, 2001 — Calpine Corporation has filed an Application for Certification (AFC) with the California Energy Commission (CEC) for its proposed Central Valley Energy Center in San Joaquin, Calif.

The filing marks the beginning of a comprehensive, six to twelve month licensing process required to build and operate an electricity generating facility in California. Depending on the pace of the reviews at the state, federal and local levels, the Central Valley Energy Center could be in operation by mid-2004.

“The Central Valley Energy Center will provide up to 1,100 megawatts of much-needed electricity to serve over 1 million homes in the Fresno area and the San Joaquin Valley. After the Greater San Francisco Bay Area, this is considered to be California’s most electrically vulnerable region,” said Curt Hildebrand, Calpine’s vice president of business development. “We are grateful for the high level of support that we have received for the project and we look forward to working with the community and the California Energy Commission, among others, to develop one of the cleanest and lowest cost electric generating facilities of its kind in the nation.”

As with all of Calpine’s modern base load facilities, the Central Valley Energy Center will use combined-cycle design with natural gas-fired turbines in combination with a steam turbine, making it safe and extremely fuel-efficient. The energy center will use 40 percent less natural gas than old-technology projects, and advanced emissions control technology will enable the energy center to reduce certain emissions by more than 90 percent.

The energy center will be located on the west side of Fresno County on an 85-acre site within the City of San Joaquin’s industrial zone — approximately 30 miles southwest of Fresno. After an extensive analysis of several sites in the region, Calpine selected this location because of its access to existing infrastructure, including a major transmission system, natural gas lines and access to a recycled water supply.

The CEC is the lead agency responsible for permitting major new power plants and has the exclusive authority to certify the construction and operation of thermal electric power plants 50 megawatts or larger and all related facilities in California. This review, which will involve federal, state and local environmental and regulatory agencies, will ensure that the Central Valley Energy Center meets or exceeds all environmental and regulatory requirements.

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. For more information about Calpine, visit its web site at www.calpine.com.