Calpine to purchase 27 Siemens Westinghouse steam turbines

SAN JOSE, Calif., Aug. 9, 2001 – Calpine Corporation announced plans to purchase 27 steam turbine generators from Siemens Westinghouse for its new fleet of North American power generating facilities.

Calpine expects turbine deliveries to begin in September 2002, with full inventory in place by February 2005. Combined, the turbines represent up to 5,400 megawatts of generating capacity.

“As we’ve already seen in the gas turbine market, if demand exceeds supply, long delivery delays can occur. High demand for steam turbines has increased the lead time on orders, requiring companies to be proactive in their procurement efforts,” said Doug Kieta, senior vice president-construction for Calpine. “Calpine was among the first to recognize this trend. Through this and upcoming turbine orders, Calpine will maintain our first-mover advantage in the marketplace and continue to enjoy development opportunities and flexibilities.”

Part of Calpine’s growth strategy is based upon the construction of new, highly efficient power projects. This approach includes designing energy centers that pair a steam turbine with one or more gas turbines in what is known as a “combined-cycle” configuration. In this application, hot exhaust from the primary power production phase is captured, used to create steam, and directed through a steam turbine for a second phase of electrical production. By doing so, Calpine’s combined-cycle energy centers can be up to 40% more efficient than existing single-cycle facilities and reduce the consumption of natural resources.

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

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