Calpine Awarded Power Sales Contract with NASA

Calpine Awarded Power Sales Contract with NASA 


HOUSTON, Dec. 7  /PRNewswire-FirstCall/ -- Calpine has been selected by the
U.S. Defense Energy Support Center to provide electricity to the National
Aeronautics and Space Administration (NASA) Johnson Space Center in Houston,
Texas. Calpine will provide full requirements retail service for an estimated
peak load of up to 35 megawatts a day. The 24-month contract begins in January
2005.

Calpine Senior Vice President Diana Knox said, "Calpine is honored to be
selected by DESC, which pursues and awards contracts for electricity services
to Department of Defense and Federal Civilian Agency facilities in the
continental United States. We look forward to what we hope will be a long-term
relationship with both NASA and DESC."

Calpine is one of the largest independent power producers in the Electric
Reliability Council of Texas, with 11 power plants in commercial operation
capable of generating more than 7,300 megawatts of electricity. These plants
are among the cleanest, most fuel-efficient, natural gas-fired facilities in
the state. Compared to the average U.S. fossil-fueled power plant, Calpine's
fleet emits, on a megawatt-hour basis, approximately 96 percent less nitrogen
oxide (NOx) -- a major cause of smog; nearly 100 percent less sulfur dioxide
(SO2) -- a major cause of acid rain; about 53 percent less carbon dioxide
(CO2), and almost 84 percent less particulate matter -- a contributor to
respiratory problems. And, unlike coal-fired plants, Calpine's power plants
have no mercury emissions -- a major health hazard.

About Calpine

Calpine Corporation, celebrating its 20th year in power, is a leading North
American power company dedicated to providing electric power to customers from
clean, efficient, natural gas-fired and geothermal power plants. The company
generates power at plants it owns or leases in 21 states in the United States,
three provinces in Canada and in the United Kingdom. Calpine is also the
world's largest producer of renewable geothermal energy. The company is listed
on the S&P 500 and was named FORTUNE's 2004 Most Admired Energy Company.
Founded in 1984, Calpine is publicly traded on the New York Stock Exchange.

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; and (vii) 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 for the year ended
December 31, 2003, and in its Quarterly Report Form 10-Q for the quarter ended
March 31, 2004, which can also be found on the Company's website at
http://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.


DATASOURCE: Calpine Corporation



CONTACT:  Media Relations: Meg Laidlaw, [phone], or Investor

Relations: Karen Bunton, [phone], ext. 1121, both of Calpine

Corporation



Web site:  http://www.calpine.com/ 

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