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, +1-713-830-8655, or Investor Relations: Karen Bunton, +1-408-995-5115, ext. 1121, both of Calpine Corporation Web site: http://www.calpine.com/

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