Calpine’s 230-MW Island Cogeneration facility enters commercial operations

SAN JOSE, Calif., May 7, 2002 — Calpine Corp. announced that its subsidiary Calpine Canada has placed the 230-MW Island Cogeneration facility into commercial operations.

The facility is delivering its full output to the British Columbia Hydro & Power Authority (BC Hydro). Fueled by clean natural gas and incorporating advanced combined-cycle technology, Island Cogeneration interconnects directly to the British Columbia transmission grid and is helping meet the growing demand for electricity on Vancouver Island.

The facility is located near Campbell River, B.C. on Vancouver Island. Designed with a combined-cycle process, Island Cogeneration generates electricity 40 percent more fuel efficiently than older technology gas-fired plants — conserving natural resources and reducing emissions. The facility delivers electricity to BC Hydro under a 20-year agreement.

As a cogeneration facility, it also will provide, on average, approximately 90 tons of steam per hour to the adjacent Norske Canada pulp and paper mill for industrial processing under a 20-year contract. Calpine acquired Island Cogeneration from Westcoast Energy Inc. in September 2001.

“This is an important milestone for Calpine Canada’s power generation business,” said Daniel Allard, senior vice president, Calpine Canada. “Island Cogeneration reflects our commitment to providing clean, cost-competitive generation for the Canadian power market and is a strong complement to our existing natural gas operations in Western Canada.”

Based in Calgary, Alberta, Calpine Canada is an integrated energy company focused on power generation and oil and gas production, and is a wholly owned subsidiary of Calpine Corporation. Calpine entered the Canadian power market in 2000 with the announcement of its 250-megawatt Calgary Energy Centre, currently under construction in Calgary, Alberta.

Calpine also has a 50 percent interest in, and operates, the 50-megawatt Whitby Cogeneration facility in Whitby, Ontario, which provides electricity to the Ontario Energy Financial Corporation (formerly Ontario Hydro) and steam to Atlantic Packaging. Calpine Canada has approximately 680 billion cubic feet of equivalent proven natural gas reserves in British Columbia and Alberta to serve its natural-gas fired power generation base.

Based in San Jose, Calif., Calpine Corporation is an independent power company that is dedicated to providing customers with clean, efficient, natural gas-fired and geothermal power generation. It generates and markets power, through plants it develops, owns and operates, in 29 states in the United States, three provinces in Canada and in the United Kingdom.

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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