Calpine breaks ground on 600-MW Metcalf Energy Center in San Jose, Calif.

SAN JOSE, Calif., June 24, 2002 — Calpine Corp. broke ground Friday for the 600-megawatt Metcalf Energy Center (MEC) in the Coyote Valley area of San Jose, Calif. Calpine expects the new natural gas-fired facility to begin energy deliveries during the summer of 2004.

Among the public officials planning to attend the private ground-breaking ceremony are San Jose Mayor Ron Gonzales, along with members of the City Council and the Santa Clara County Board of Supervisors. Speakers will include Assemblyman Rod Wright, chair of the Utilities and Commerce Committee, Assemblyperson Rebecca Cohn and State Senator Bruce McPherson, all of whom strongly support the project. Representatives of the Silicon Valley Manufacturing Group also will attend.

The California Energy Commission (CEC) unanimously approved a license for the MEC in September of last year, after nearly two and one-half years of review. This natural gas-fired energy center will provide a vital source of electricity for San Jose. In September of 2000, the California Independent System Operator (ISO) sent a letter to the CEC in support of the project, stating, “The Bay Area, in particular the San Jose area, is among the most generation deficient areas in the state. San Jose is the most vulnerable metropolitan area on the Pacific Gas and Electric (PG&E) system for local system problems. MEC will provide substantial reliability benefits to the San Jose area.”

MEC has received an unprecedented level of support, including endorsements from Governor Gray Davis, Senator Dianne Feinstein, the California State Assembly, the Democratic and Republican leadership of the California legislature, the Santa Clara County Board of Supervisors, various regulatory agencies, the San Jose Silicon Valley Chamber of Commerce, Silicon Valley Manufacturing Group, the Loma Prieta Chapter of the Sierra Club, labor organizations, community leaders, the local chapters of the American Lung Association and the NAACP, the Center for Energy Efficiency and Renewable Technologies (CEERT), The Utility Reform Network (TURN), and many others.

Pete Cartwright, Calpine chairman, CEO and president, stated, “This groundbreaking for the Metcalf Energy Center is a tremendous milestone for Calpine and a great day for the City of San Jose and Silicon Valley. It couldn’t have happened without the enormous time and effort put in by many dedicated people within Calpine, the community and the state. Once built, Metcalf will be one of the most modern power generating facilities in the world, providing an ample supply of clean, reliable energy to Silicon Valley to support the continuing development of world-renowned, cutting edge technologies.”

“Calpine has worked long and hard to make the Metcalf Energy Center a reality. We have always believed Metcalf was a vitally needed infrastructure resource for a region lacking its own significant local source of power generation. We are fortunate to have sited this project in an ideal location,” said Ken Abreu, Calpine’s Director of Project Development, Western Region. “Recently, I’m proud to say, Metcalf has garnered the support of over 26,000 individuals, organizations, businesses, environmentalists, labor and community leaders. We greatly appreciate their support and confidence in Calpine’s ability to provide safe, clean and reliable electricity for the communities we serve.”

One of the environmental benefits associated the Metcalf Energy Center is a donation of 131 acres for a new conservation area in the Coyote Valley to be known as the Metcalf Energy Center Ecological Preserve. This preserve is located on a serpentine hillside, home to endangered species such as the Bay Checkerspot Butterfly and a variety of sensitive native plant life. The donation also includes an endowment to be used for ongoing management of the land.

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 is also 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

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