Calpine Restructures Turbine Agreements

February 11, 2003 by Jeff Shepard

Calpine Corp. (San Jose, CA) announced that it has entered into restructured agreements with its major gas and steam turbine manufacturers, including GE Power Systems, Siemens Westinghouse and Toshiba International Corp., giving Calpine the option to cancel its existing orders for 87 gas turbines and 44 steam turbines. The new agreements significantly reduce the company's future capital commitments by approximately $3.4 billion and provide greater flexibility to match equipment commitments with Calpine's revised construction and development program.

"This latest phase of Calpine's restructured turbine program reflects our continued focus on further reducing future capital expenditures," stated Calpine Chairman and CEO Peter Cartwright. "We appreciate our turbine equipment manufacturers' continued support in meeting our near-term and long-term goals. As we enter 2003, Calpine remains determined to strengthen liquidity, improve our creditworthiness and enhance value, for our investors and our customers."