Calpine completes acquisition of Canadian power plants from Westcoast Energy

SAN JOSE, Calif., Sept. 21, 2001 – Calpine Corporation today announced its wholly owned subsidiary Canada Power Holdings Ltd. (Calpine) has completed the acquisition and assumed operations of two Canadian power generating facilities from British Columbia-based Westcoast Energy Inc.

The acquisition adds 275 net megawatts of strategic natural gas-fired generation to Calpine’s Canadian power portfolio. Calpine acquired the generating assets for approximately $US255 million.

As a result of the acquisition, Calpine now owns a 100 percent interest in and operates the Island Cogeneration facility, a 250-megawatt natural gas-fired electric generating facility located near Campbell River, British Columbia on Vancouver Island. Construction of the facility is nearing completion and will deliver electricity to BC Hydro under the terms of a 20-year agreement. As a cogeneration facility, it will also provide steam to Norske Skog for industrial processing under the terms of a 15-year contract.

Calpine also acquired a 50 percent interest in and assumed operations of the 50-megawatt Whitby Cogeneration facility. This natural gas-fired facility delivers electricity to Ontario Energy Financial Corporation, formerly Ontario Hydro, under the terms of a 20-year agreement. Located in Whitby, Ontario, the plant entered commercial operations in September 1998 and provides steam to Atlantic Packaging.

With this acquisition in place, Calpine has power interests in the British Columbia, Ontario and Alberta power markets. Calpine is well positioned to grow its power generation portfolio in these large Canadian power markets, each with robust economies and significant opportunity for new independent power generation. The projects also complement Calpine’s natural gas operations in British Columbia and Alberta.

Calpine entered the Canadian power market in 2000 with the announcement of its 250-megawatt Calgary Energy Centre, under construction in Calgary. Calpine has since acquired approximately 1.0 trillion cubic feet of proven and probable natural gas reserves in Canada to serve its growing natural gas-fired power generation base.

Calpine Corporation, based in San Jose, Calif., 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. Calpine has launched the largest power development program in North America.

To date, the company has approximately 34,900 megawatts of base load capacity and 7,600 megawatts of peaking capacity in operation, under construction and in announced development. 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.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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