Calpine’s channel energy center available to dispatch 190 MW of power

SAN JOSE, Calif., July 30, 2001 — Calpine Corporation announced its Houston, Texas Channel Energy Center has entered simple-cycle operations and is generating up to 190 megawatts of electricity for the Texas wholesale power market.

The company expects to complete the combined-cycle build out in the spring of 2002, enabling the facility to produce up to 630 megawatts of reliable, low-cost electricity.

The Channel facility is located at LYONDELL-CITGO Refining LP’s facility along the Houston Ship Channel — one of the world’s largest industrial corridors. Fueled by clean natural gas, the facility is operating in a simple-cycle configuration, using one natural gas-fired combustion turbine. Upon completion of the combined-cycle build out, Channel will supply all of the electricity and steam requirements for LYONDELL-CITGO under the terms of a 20-year agreement.

“Calpine continues to meet the complex energy needs of large industrial customers, like LYONDELL-CITGO, while helping provide needed, low-cost electricity for the fast growing Texas power market,” said Diana Knox, senior vice president of Calpine’s Central Region.

The Channel facility will continue operations throughout the construction necessary to bring the remainder of the plant online. Upon completion of the combined-cycle build out next spring, the facility will incorporate two natural gas-fired turbines in combination with a steam turbine to generate up to approximately 630 megawatts of electricity. This highly-efficient, combined-cycle configuration enables Calpine to generate electricity 40 percent more fuel efficiently than older technology gas-fired plants while significantly lowering emissions. It also allows Calpine to provide LYONDELL-CITGO with a 20-year supply of reliable and affordable electricity and steam for its industrial processing.

About Calpine

Based in San Jose, Calif., Calpine Corporation is dedicated to providing customers with reliable and competitively priced electricity. To date, the company has approximately 34,600 megawatts of base load capacity and 8,100 megawatts of peaking capacity in operation, under construction, pending acquisition and in announced development in 29 states, the UK and Canada. For more information about Calpine, visit its Website at www.calpine.com.

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