Calpine Awarded Ancillary Services Contract with Alberta Electric System Operator SAN JOSE, Calif., March 28 /PRNewswire-FirstCall/ -- Calpine Corporation's wholly-owned subsidiary Calpine Energy Services Canada Partnership (CESCP) has been awarded a contract to provide 75 megawatts of Transmission Must Run (TMR) Services to the Alberta Electric System Operator (AESO). The TMR Services, a type of ancillary service that is required to address contingencies in areas of inadequate transmission, will help provide voltage support to the AESO's transmission system in southern Alberta near Calgary and assist in maintaining overall system security. Awarded through an open, competitive procurement process, the contract term began March 17, 2005 and will extend to June 30, 2006. The contract has options for extension until June 2008. The services are being provided out of the Calgary Energy Centre, a 300-megawatt natural gas-fired combined-cycle power facility located in Calgary. The Calgary Energy Centre entered commercial operations in April 2003. This contract is in addition to an existing contract between CESCP and AESO for 125 megawatts of ancillary services from the Calgary Energy Centre, which was awarded through a Location- Based Credit Standing Offer in March 2001. "Calpine is pleased to be selected to provide the AESO with needed transmission must-run services," said Mike Rogers, vice president, western operations for Calpine. "The excellent location and high-flexibility of the Calgary Energy Centre make it uniquely suited to continue to assist the AESO in meeting its system reliability needs in the Calgary area." The Calgary Energy Centre is operated by Calpine Canada Power Ltd., a subsidiary of Calpine Corporation. The facility is owned by Calpine Power LP, a joint partnership between the Calpine Power Income Fund (which owns 70%) and Calpine Canada Power Ltd (which owns 30%). Calpine Energy Services Canada Partnership is the Canadian marketing, trading and risk management arm of Calpine Corporation. About Calpine A major power company, Calpine Corporation supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and three Canadian provinces. Its customized products and services include wholesale and retail electricity, natural gas, gas turbine components and services, energy management, and a wide range of power plant engineering, construction and operations services. Calpine was founded in 1984. It is included in the S&P 500 Index and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information, visit http://www.calpine.com/. 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; (vii) the successful exploitation of an oil or gas resource that ultimately depends upon the geology of the resource, the total amount and costs to develop recoverable reserves and operations factors relating to the extraction of natural gas; (viii) the effects on the Company's business resulting from reduced liquidity in the trading and power industry; (ix) the Company's ability to access the capital markets or obtain bank financing on attractive terms; (x) the direct or indirect effects on the Company's business of a lowering of its credit rating (or actions it may take in response to changing credit rating criteria), including, increased collateral requirements, refusal by the Company's current or potential counterparties to enter into transactions with it and its inability to obtain credit or capital in desired amounts or on favorable terms; and (xi) 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/A, amendment number 2, for the year ended December 31, 2003 and in its Quarterly Report on Form 10-Q for the quarter ended September 30, 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, Susan Dowse, +1-403-750-5419, or investors, Karen Bunton, +1-408-792-1121, both of Calpine Corporation Web site: http://www.calpine.com/

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