GE Energy, Calpine To Build 775-Megawatt Power Plant in Southern Calif

    Business Editors/Energy Editors

    SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 22, 2005--Calpine Corporation (NYSE:CPN) and the GE Energy business of General Electric Company (NYSE:GE) have selected Calpine's Inland Empire Energy Center in Southern California for the North American launch of GE's most advanced gas turbine technology, the H System(TM).
    The Inland Empire Energy Center is located in the unincorporated community of Romoland in Riverside County, California. Licensed by the California Energy Commission (CEC) on December 17, 2003, the project will be capable of meeting the energy needs of almost 600,000 households in one of the fastest growing regions in the state. Moreover, the Inland Empire Energy Center is scheduled to be online by the summer of 2008, a point in time when energy officials have predicted that energy supplies may not be sufficient to meet demand.
    "California set seven consecutive demand records this past summer and supply and demand fundamentals strongly indicate a need for new power plants in Southern California," said John Rice, President and CEO of GE Energy. "Through the construction and operation of North America's most advanced power plant of its kind, the Inland Empire Energy Center will be poised to provide crucial electricity for California, when and where it is needed the most."
    "For the first time in several years, California appears to have a clear direction on energy policy," stated Calpine CEO and President Peter Cartwright. "GE's decision to work with Calpine and invest more than a half billion dollars in the Inland Empire Energy Center is proof of the progress that has occurred under the Schwarzenegger Administration and is a tribute to California's improving business climate."
    The Inland Empire Energy Center will be based on two GE 107H combined-cycle systems, GE's latest gas turbine technology. The H System represents the most efficient, gas turbine combined-cycle system available to the energy industry. GE's innovative gas turbine technology enables the H System to provide superior fuel economy and environmental performance. For every unit of electricity produced, the H System uses less fuel and produces less greenhouse gases and other emissions when compared to other large gas turbine combined-cycle systems.
    Calpine will retain development responsibility for the new facility and secure the necessary permit amendments for the project's new equipment configuration. Construction is expected to begin this year and Calpine Power Services, a subsidiary of Calpine Corporation, will provide program management services for the construction effort. During the three years required to construct and complete extensive testing of this new generation of technology, over one million craft hours of labor will be required, with more than 500 construction workers involved in the project.
    Upon commencement of commercial operations, targeted for mid- 2008, Calpine's Energy Services group will market electricity from the facility through a long-term marketing arrangement with GE. Subsequently, Calpine will sell the power through a variety of long, intermediate and short-term contracts. Following a period of GE ownership, Calpine will purchase the plant and become the sole owner and operator of the facility.

    About Calpine

    A major power company, Calpine Corporation supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and three Canadian provinces. Its customized products and services include wholesale and retail electricity, natural gas, gas turbine components and services, energy management, and a wide range of power plant engineering, construction and operations services. Calpine was founded in 1984. It is included in the S&P 500 Index and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information, visit http://www.calpine.com.

    About GE Energy

    GE Energy (www.gepower.com) is one of the world's leading suppliers of power generation and energy delivery technology, with 2004 revenues of $17.3 billion. Based in Atlanta, Georgia, GE Energy provides equipment, service and management solutions across the power generation, oil and gas, transmission and distribution, distributed power and energy rental industries.

    This news release discusses certain matters that may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or current expectations of Calpine Corporation ("the Company") and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results such as, but not limited to, (i) the timing and extent of deregulation of energy markets and the rules and regulations adopted on a transitional basis with respect thereto; (ii) the timing and extent of changes in commodity prices for energy, particularly natural gas and electricity; (iii) commercial operations of new plants that may be delayed or prevented because of various development and construction risks, such as a failure to obtain the necessary permits to operate, failure of third-party contractors to perform their contractual obligations or failure to obtain financing on acceptable terms; (iv) unscheduled outages of operating plants; (v) a competitor's development of lower cost generating gas-fired power plants; (vi) risks associated with marketing and selling power from power plants in the newly-competitive energy market; other risks identified from time-to-time in the Company's reports and registration statements filed with the SEC, including the risk factors identified in its Annual Report on Form 10-K/A, amendment number 2, for the year ended December 31, 2003 and in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2004, which can also be found on the Company's website at www.calpine.com. All information set forth in this news release is as of today's date, and the Company undertakes no duty to update this information.

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CONTACT: GE Energy, Atlanta George Krakat, +1 518 384 4593 george.krakat@ge.com or Masto Public Relations Ken Darling or Howard Masto, +1 518 786 6488 kenneth.darling@ps.ge.com howard.masto@ps.ge.com or Calpine Media Inquiries Kent Robertson, +1 408 621 1447 kentr@calpine.com or Investor Relations Rick Barraza, +1 408 995 5115, ext. 1125

KEYWORD: CALIFORNIA GEORGIA INDUSTRY KEYWORD: ENERGY MARKETING AGREEMENTS SOURCE: GE Energy

Copyright Business Wire 2005