Calpine breaks ground on 750-MW Pastoria Energy Center in California

Kern County project expected to be on line in time to meet peak summer demand in 2003

SAN JOSE, Calif., Aug. 23, 2001 – Calpine Corporation, an independent power company, today announced construction is under way for the 750-megawatt Pastoria Energy Center.

Thirty miles south of Bakersfield, Calif., the project is located on property leased from the Tejon Ranch Corporation. Projected to be on line in the summer of 2003, the Pastoria Energy Center will be generating electricity to meet high summer demand.

“Pastoria is the latest in a series of Calpine projects intended to provide near- and long-term solutions to the power crunch in the West,” said Calpine Senior Vice President, Jake Rudisill. “We’ve achieved several milestones this summer and we are extremely pleased to be able to point to yet another.”

Last month, Calpine’s Sutter Energy Center became the first major power project to begin commercial operations in California in more than a decade. A week later, Calpine’s Los Medanos Energy Center, the largest power project to begin commercial operations in the San Francisco Bay Area in more than 30 years, entered operations.

The California Energy Commission licensed the Pastoria project in December 2000, and construction activities may require as many as 800 workers. The facility will feature three General Electric Frame 7FA gas combustion turbines in combined-cycle with two steam turbines. Fueled by natural gas and operated with an advanced emissions control system, Pastoria will be among the cleanest and most efficient conventional power resources in California.

Once the facility is in operations, Calpine will employ 30-35 full-time professionals with an annual payroll in excess of $1.7 million. Calpine will manage all aspects of the energy center, including engineering and design, construction, fuel supply, operations, and power marketing.

Already the power industry’s project developer, Calpine has launched the largest power generating initiative in California. Building upon an existing 2,400 megawatts of in-state generation, Calpine has 2,030 megawatts of energy centers under construction and has announced the development of almost 3,300 megawatts of additional California generation capacity. By the end of 2005, Calpine will generate 12,000 new megawatts for California, a development program that will provide clean, dependable, and affordable power to millions of Californians for years to come.

Calpine Corporation is dedicated to providing customers with reliable and competitively priced electricity. Its focus is natural gas-fired generation and renewable geothermal energy. For more information about Calpine, visit its Website at www.calpine.com.

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