Calpine Signs California Power Agreement

SAN JOSE, California -- Calpine Corporation, one of the leading power companies in North America and largest producer of renewable geothermal energy, announced that it has entered into a long-term power sales agreement with Southern California Edison (SCE) calling for the delivery of 200 megawatts of baseload renewable energy.

Delivery will begin by the end of the second quarter of 2003.

"This contract further demonstrates Calpine's commitment to California and to clean renewable energy production in the state. The contract also marks the single-largest renewable energy transaction in California," said Calpine Vice President - Marketing & Sales Curt Hildebrand. "From a market perspective, Southern California Edison's return to the power procurement business is viewed as a very positive step for California. California's utilities are key to a stable and rational power market, and the resumption of long-term power purchase contracts is a strong indication the market is recovering."

The contract reflects Calpine's long-term strategy of committing the majority of its generating capacity under long-term contracts. Its customers benefit from a clean, reliable and economic source of electricity, and Calpine benefits from a strong, predictable source of revenue.

The contract was approved by the California Public Utilities Commission (CPUC) on January 30, 2003 and has a minimum term of five years. Power will originate from Calpine's system of geothermal power projects at The Geysers located in Northern California.

Source: Canadian Electricity Association