Calpine And Bechtel Receive California Energy Commission License To Construct Delta Energy Center

San Jose, CA - February 9, 2000 San Jose-based Calpine Corporation [NYSE:CPN] and San Francisco-based Bechtel Enterprises announced that the California Energy Commission (CEC) has approved plans to construct the Delta Energy Center in Pittsburg, Calif. The $450 million, natural gas-fired facility will generate 880-megawatts of clean, reliable electricity for the greater Bay Area in mid-2002—in time to help offset anticipated system strains in northern California.The CEC's 4-to-0 vote to approve Delta Energy Center's Application for certification completes a stringent yearlong environmental review process. The CEC—the lead state regulatory agency for the project--determined that the Delta Energy Center will have no significant adverse environmental impacts. Calpine and Bechtel filed the application with the CEC in December 1998.

"Delta Energy Center will help stem projected electrical supply shortfalls and help modernize California's aging and constrained electric power infrastructure," said Bob Hepple, Calpine vice president of project development and director of projects for the Calpine/Bechtel Bay Area power program. "In addition, it will provide Californians with significant environmental and cost saving benefits."

"On behalf of Calpine and Bechtel, I would like to commend the outstanding efforts of our project development team, led by Project Manager Doug Buchanan, and the support of the Pittsburg and Antioch communities," continued Hepple.

Bechtel will build the energy facility in an industrial area to the north of Highway 4 in Pittsburg, Calif. Construction is scheduled to begin in June 2000. The project will employ up to 250 local union workers during peak construction and 25-to-30 full-time operations jobs.

Utilizing state-of-the-art environmental control technology, the Delta Energy Center will emit 90% less emissions than the average gas-fired utility power plant in the U.S. In addition, it will be 40% more fuel-efficient, significantly lowering costs and conserving natural resources.
Calpine will operate Delta Energy Center when it enters commercial operation. The facility will provide electricity and steam for use at the nearby Dow Chemical Company facility and will also power homes and businesses throughout Pittsburg and the greater Bay Area.

Based in San Jose, Calif., Calpine Corporation is a leading U.S. power company dedicated to providing customers with reliable and competitively priced electricity. Calpine currently has interests in approximately 14,000 megawatts of capacity in operation, under construction, or in announced development in 18 states—enough energy to power 14 million households. Calpine has headquarters in San Jose, Calif., with regional offices in Houston, Texas; Pleasanton, Calif.; and Boston, Mass. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. To learn more about Calpine, visit its web site at

Bechtel Enterprises is the development, financing, and ownership affiliate of Bechtel Group, Inc., a premier global engineer-contractor. It has developed more than 50 projects in the power generation, water and wastewater, transportation, pipeline, and telecommunications sectors. Bechtel 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.