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Calpine Deer Park Energy Center Receives EnergyStar® Award

Calpine Deer Park Energy Center Receives EnergyStar® Award

Published 05-14-04

Submitted by Calpine Corporation

WASHINGTON, D.C. - Yesterday, the U.S. Environmental Protection Agency and the U.S. Department of Energy recognized the first phase of the Calpine Corporation [NYSE:CPN] Deer Park Energy Center for "leadership in energy supply" with a 2003 EnergyStar® Combined Heat and Power (CHP) Award.

Presented at a Combined Heat and Power Partnership ceremony in Washington, D.C., the award demonstrates Calpine's commitment to providing power in one of the most efficient and environmentally responsible ways possible. Thirty-three of Calpine's 69 natural gas facilities are CHP, representing nearly 9,700 megawatts of power and serving an aggregate steam load of up to 18 million pounds per hour. This makes Calpine the leading cogeneration company in the United States.

Deer Park Energy Center's first combustion turbine began operation in 2003, producing 178 megawatts of baseload power and up to 1.1 million pounds of steam per hour. When the facility is completed this summer, it will consist of four combustion turbines, one steam turbine generator and four heat recovery steam generators. Steam is utilized by the joint Shell Deer Park Oil Refining Company and Shell Chemical LP manufacturing facility adjacent to Calpine's site. Calpine sells the electricity to its other customers in the deregulated Texas market, which provides competitive access for energy procurement.

Calpine Vice President Peter Gross, who accepted the award on behalf of Calpine, said, "Calpine is honored that the efficiency of this facility and its environmental benefits have been recognized by the EPA and CHP. We look forward to the completion of the remaining portion of the facility to bring additional efficiencies that will further enhance Calpine's competitive position in Texas."

Equally important, this project will help the Houston/Galveston area in its efforts to achieve Federal Clean Air Act Compliance. For instance, compared to the average fossil-fueled power plant in the United States, 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.

Calpine is a member of the EPA/CHP Partnership, which seeks to reduce the environmental impact of power generation by fostering the use of CHP. The Partnership is a voluntary program that works closely with the CHP industry, state and local governments and other stakeholders to develop tools and services to support the development of new projects and promote their energy, environmental and economic benefits. The EnergyStar® CHP award recognizes projects that use at least 5 percent less fuel than state-of-the-art separate power-and-heat generation. By significantly improving efficiency, award-winning projects not only save money but also reduce greenhouse gases, such as, CO2 and other air pollutants, including NOx, SO2 and particulate matter.

Calpine is the largest independent power producer in the Electric Reliability Council of Texas, with 11 power plants capable of generating more than 6,700 megawatts of electricity. These plants are the cleanest, most fuel-efficient, natural gas-fired facilities in the state that provide power under both short- and long-term contracts to wholesale and industrial power customers.

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, and owns or controls approximately one trillion cubic feet equivalent of proved natural gas reserves in the United States and Canada. The company is listed on the S&P 500 and was named FORTUNE's 2004 Most Admired Energy Company. The company was founded in 1984 and is publicly traded on the New York Stock Exchange.

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Calpine Corporation

Calpine Corporation

Calpine Corporation is helping meet the needs of an economy that demands more and cleaner sources of electricity. Founded in 1984, Calpine is a major U.S. power company, capable of delivering nearly 25,000 megawatts of clean, cost-effective, reliable and fuel-efficient electricity to customers and communities in 18 states in the United States. The company owns, leases and operates low-carbon, natural gas-fired and renewable geothermal power plants. Using advanced technologies, Calpine generates electricity in a reliable and environmentally responsible manner for the customers and communities it serves. Please visit http://www.calpine.com for more information.

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