Calpine’s 550-MW Channel Energy Center enters combined-cycle operations

SAN JOSE, Calif., April 29, 2002 — Calpine Corp. announced its Channel Energy Center (CEC) in Houston, Texas, has entered combined-cycle operations ahead of schedule and will sell steam and electricity under a 20-year agreement to LYONDELL-CITGO Refining LP.

The Channel Energy Center is located at LYONDELL-CITGO Refining LP’s facility along the Houston Ship Channel — one of the world’s largest industrial corridors. The CEC will operate clean, natural gas-fired combustion turbines that are 40 percent more efficient than older technology gas-fired plants.

CEC entered simple-cycle operations in July 2001, generating up to 190 megawatts of electricity. With the completion of the combined-cycle build out, CEC is producing approximately 550 megawatts and is supplying all of the electricity and steam requirements for LYONDELL-CITGO at this site.

“Securing long-term agreements with large industrials like LYONDELL-CITGO has been the hallmark of our presence in Texas,” said Diana Knox, senior vice president of Calpine’s central region. “We’ve proven our reliability as a energy provider to the rest of the ERCOT market by consistently supplying competitively priced power teamed with flexible services to meet an industrial customer’s strict requirements.”

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 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 www.calpine.com.


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