The program includes a new, two-year multi-rig drilling program to expand steam production and identify new sources of geothermal power and also to rebuild eight older geothermal turbines to make them even more energy-efficient. Calpine, one of the nation's largest power producers, also owns, leases and operates low-carbon, natural gas-fired power plants.

Using advanced technologies, Calpine generates electricity in a reliable and environmentally responsible manner for the customers and communities it serves. California energy and environmental leaders, including California Public Utilities Commissioner Timothy Alan Simon, joined Calpine's Chief Executive Officer Robert P. May today at The Geysers Geothermal Visitor Center in Middletown, Calif., where Calpine's new geothermal power program was announced.

"As California's largest renewable and low-carbon power provider, Calpine remains committed to generating electricity in an environmentally and socially responsible manner," stated May.

"Calpine was founded on geothermal power production and remains committed to providing clean, reliable and affordable low-carbon and renewable power generation from our operations here in California and across the country. Today we renew our commitment to The Geysers in honor of our customers who demand clean sources of energy and the dedicated employees who continue to operate these facilities safely around the clock."

May added that Calpine anticipates spending $200 million to initiate the repowering and exploration phase of the program and would consider further development at The Geysers if Calpine is able to enter into long term power sales contracts.

Joining Calpine in announcing the company's Geysers Repowering Program was Commissioner Timothy Alan Simon of the California Public Utilities Commission, who stated, "The PUC welcomes this additional investment in meeting California's energy needs. We all have to work together to provide the infrastructure for California's growing population and reach the state's aggressive goal of obtaining 20 percent of our power from renewable sources by 2010."

Rep. Mike Thompson, U.S. Congressman from California's First Congressional District which includes The Geysers, said, "As a Congressman and a member of the Renewable Energy Efficiency Caucus, I am proud of the work Calpine is doing here in my district.

Our nation's future will be increasingly dependent on technologies and renewable energy sources that work with, not against, the environment. The exploration of new sources of clean, reliable geothermal energy points to what is possible when one stops relying on fossil fuels and starts relying on ingenuity and creativity."

Located about 100 miles north of San Francisco, The Geysers is the single-largest geothermal operation in the world, with Calpine's portfolio of units there generating 725 megawatts of renewable energy. It is one of California's most beneficial domestic energy resources, representing about 25 percent of the state's renewable energy production.

Geothermal power plants take advantage of a natural, clean energy source -- heat from the earth's interior -- to produce electricity. Because these plants do not burn fossil fuel, they have an inherent environmental advantage.

Calpine owns 19 of the 21 geothermal units at The Geysers and a vast network of steam fields, making Calpine California's largest renewable energy provider. Unlike other renewable energy resources like wind and solar, geothermal power plants continuously generate electricity so Calpine's geothermal units run with near-perfect (97%) availability 24-hours a day, seven days a week. Because they interconnect with five separate major transmission lines, they can deliver electricity throughout California.

Calpine will be tapping production and exploratory wells -- some as deep as 11,000 feet -- to expand steam production and to identify new sources of geothermal power. To further enhance production, the company is committing to rebuild many of its older facilities for higher efficiencies and to sustain clean, reliable geothermal generation for decades to come.

In addition, Calpine is expanding and sustaining production from this renewable resource through wastewater recharge projects whereby clean reclaimed wastewater from local municipalities is recycled into the geothermal resource where it is converted into steam for electricity production. This provides an environmentally sound wastewater discharge solution for neighboring cities and increases the long-term productivity of the geothermal operation.

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.

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