Calpine's announcement re: PG&E

Here's Calpine's announcement, fyi...

PG&E Bankruptcy Will Not Affect Calpine's Commitment to California Power
Market
/FROM PR NEWSWIRE SAN FRANCISCO 415-543-7800/

TO BUSINESS AND ENERGY EDITORS:

PG&E Bankruptcy Will Not Affect Calpine's Commitment to California

Power Market

SAN JOSE, Calif., April 9 /PRNewswire/ -- In response to Pacific Gas and
Electric Company's (PG&E) April 6th Chapter 11 filing, Calpine Corporation
(NYSE: CPN), the San Jose, Calif.-based independent power company, stated it
is confident that PG&E, through a successful reorganization, will be able to
pay Calpine's Qualifying Facility (QF) subsidiaries for all past due power
sales, in addition to electricity deliveries made on a going-forward basis.

CALPINE'S QF SUBSIDIARIES SELL POWER TO PG&E UNDER THE TERMS OF LONG-TERM
QF CONTRACTS AT ELEVEN FACILITIES, REPRESENTING NEARLY 600 MEGAWATTS OF
ELECTRICITY FOR NORTHERN CALIFORNIA POWER CUSTOMERS. AS OF MARCH 31, 2001,
CALPINE HAS RECORDED APPROXIMATELY $267 MILLION IN ACCOUNTS RECEIVABLE WITH
PG&E, PLUS A $68 MILLION NOTE RECEIVABLE NOT YET DUE AND PAYABLE. THE
COMPANY'S REMAINING CALIFORNIA OPERATIONS, TOTALING APPROXIMATELY 700
MEGAWATTS OF CAPACITY, PROVIDE ELECTRICITY TO MUNICIPALITIES AND OTHER
CREDITWORTHY THIRD PARTIES.

CALPINE'S QF FACILITIES ARE PART OF A 9,000-MEGAWATT QF SUPPLY THAT
PROVIDE CALIFORNIA CUSTOMERS WITH A LONG-TERM SOURCE OF ELECTRICITY AT PRICES
SIGNIFICANTLY BELOW CURRENT WHOLESALE PRICES. THIS CRITICAL POWER SUPPLY
REPRESENTS APPROXIMATELY 33 PERCENT OF THE STATE'S POWER DEMAND. WITHOUT
THESE CONTRACTS IN PLACE FOR THIS SUMMER, CALIFORNIA FACES THE PROSPECT OF
MORE BLACKOUTS AND HUNDREDS OF MILLIONS OF DOLLARS IN INCREASED COSTS.

FOR THESE QF CONTRACTS TO CONTINUE, PG&E MUST ASSUME THE CONTRACTS IN THE
BANKRUPTCY PROCEEDINGS. IN ORDER TO ASSUME THESE CONTRACTS, PG&E WILL BE
REQUIRED TO CURE ALL OUTSTANDING DEFAULTS, INCLUDING PAYING ALL PAST DUE
AMOUNTS. IF PG&E FAILS TO ASSUME THE CONTRACTS, CALPINE'S QF SUBSIDIARIES
WILL BE ABLE TO SELL POWER ON THE OPEN MARKET AND SEEK DAMAGES FROM PG&E FOR
BREACH OF CONTRACT THROUGH THE BANKRUPTCY CLAIMS RESOLUTION PROCESS.

"As the state's leading developer of new electric generating facilities,
Calpine remains committed to providing innovative solutions for California's