Gas

Calpine’s Decatur Energy Center to supply up to 500-MW for TVA

SAN JOSE, Calif., May 15, 2002 — Calpine Corp. announced that it has entered into a three-year power sales agreement with the Tennessee Valley Authority (TVA).

Beginning in June 2004, Calpine will supply TVA with an option to purchase up to 500 megawatts per day of baseload capacity from its 794-megawatt Decatur Energy Center, under construction in Decatur, Ala. Energy deliveries will begin in June 2004 and continue through May 31, 2007.

Calpine was selected through a TVA request for proposals dated January 2001 that generated approximately 45 proposals from 15 bidders.

Calpine’s Decatur Energy Center also will help meet TVA’s summer peak demand. Under an earlier request for proposals from TVA, Calpine will provide TVA with an option to purchase up to 400 megawatts of peaking supply in 2002 and up to 500 megawatts in 2003.

According to Paul Barnett, Calpine vice president — business integration, “We are extremely pleased to have been selected by TVA to help meet the growing energy needs of their customers in the Tennessee Valley. Today’s agreement confirms Calpine’s commitment and ability to market power in the Southeast from our highly fuel-efficient fleet of modern, combined-cycle generating facilities.”

Calpine’s Decatur Energy Center is a natural gas-fired, combined-cycle electric generating facility located in Decatur, Ala. Phase I of the project, which includes a 500-megawatt combined-cycle power block, is in the final stages of construction, with startup expected to begin in June 2002. The remaining 294-megawatt power block is expected to begin commercial operations by the summer of 2003.

TVA is the nation’s largest public power agency, supplying large industries and 158 power distributors that serve 8.3 million consumers in seven southeastern states.

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