Delta Energy Center Application Is Deemed "data Adequate" By California Energy Commission

February 17, 1999 San Jose-based Calpine Corporation [NYSE: CPN] and San Francisco-based Bechtel Enterprises announced that the Application for Certification (AFC) for their joint development project, the Delta Energy Center, has met the California Energy Commission's (CEC) data adequacy requirements. The Energy Commission's data adequacy ruling means that the Delta Energy Center AFC contains sufficient information for the CEC staff to begin their permitting and licensing process and initiates a 12 month technical and environmental review process for the project. Calpine and Bechtel submitted the AFC to the CEC on December 18, 1998.

Located in an industrial area to the north of Highway 4 in Pittsburg, Calif., the Delta Energy Center will be an 880-megawatt electric generating facility that will provide steam and electricity to the nearby Dow Chemical Company facility and also provide power to homes and businesses in Pittsburg and the greater Bay Area.

"Utilizing clean-burning natural gas for fuel, the Delta Energy Center is being designed to minimize emissions," said Douglas W. Buchanan, Delta Energy Center development manager. "As we indicated in the AFC filing, this project will be one of the cleanest and most efficient power generation facilities in the nation."

Compared to the average utility gas-fired plant operating in California today, the facility will burn up to 40 percent less fuel and will achieve dramatic emissions reductions by using state-of-the-art, combined-cycle combustion turbine design and advanced emissions control systems.
Buchanan noted, "The Delta Energy Center will be built by local union labor and will generate significant tax revenue to fund local programs and services."

Calpine and the California State Building and Construction Trades Council recently reached a series of agreements regarding the construction and major maintenance of Calpine's new Northern California energy-generating facilities.

"These labor agreements confirm that Calpine and Bechtel will use local workers, pay family wages and benefits, utilize the most highly skilled workforce available, and benefit the local economy," said Greg Feere, chief executive officer of the Contra Costa County Building and Construction Trades Council.

It is anticipated that the CEC review, licensing, and public hearing process will be completed by early 2000. If approved, construction will start soon after the license is issued, and commercial operation will commence in early 2002.

Throughout the CEC process, local area residents will be encouraged to voice their opinions about the Delta Energy Center. As part of this effort to seek public participation, Calpine and Bechtel conducted a community open house on February 6, 1999, to discuss the project and to answer questions from the community before the formal review process begins.
"Calpine and Bechtel are committed to working closely with community members, environmental groups, and local governmental agencies to maximize public participation and input," said Buchanan. "We understand our obligation to the community and to the environment and want to make this a model project."

Based in San Jose, Calpine is a leading national power company that currently has 5,900 megawatts of energy capacity in operation, under construction, or in announced development in the U.S. Calpine was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN.

Bechtel Enterprises is the development, financing, and ownership affiliate of the Bechtel organization, a global engineering and construction firm based in San Francisco. The company celebrated its centennial year of service in 1998 and has been a part of the San Francisco Bay Area since 1904. Bechtel has been at the center of energy development since the 1940s, having built more than 450 power stations with a total generating capacity exceeding 250,000 megawatts.