News Briefs:
+Calpine to Acquire SkyGen Energy

Calpine Corp. said it plans to acquire SkyGen Energy LLC (SkyGen Energy)
from Michael Polsky and from Wisvest Corp., a Wisconsin Energy Corp.
affiliate, for $450 million, plus the assumption of certain obligations of
SkyGen Energy. The SkyGen Energy acquisition -- along with other recently
announced acquisitions -- would increase Calpine's 2004 operating portfolio
to over 40,000 MW of generation.

Upon closing of the transaction, expected during the third quarter of 2000,
Calpine will increase its power portfolio by up to 13,500 MW of natural
gas-fired generation in the U.S., and will acquire 34 General Electric 7 FA
gas turbines. Under terms of the agreement, Calpine will add three operating
facilities (780 MW), three projects under construction (812 MW), 13
late-stage development facilities (5,258 MW) and 16 project development
opportunities (6,615 MW).

SkyGen was founded by Michael Polsky in 1991. SkyGen will continue to
develop its portfolio of development projects as a wholly owned subsidiary
of Calpine. Michael Polsky will serve as President of SkyGen and as a member
of Calpine's Board of Directors. To fund the SkyGen Energy and other
recently announced acquisitions, Calpine has obtained a $1 billion
short-term credit facility with The Bank of Nova Scotia, Credit Suisse First
Boston and CIBC World Markets. The company expects to refinance this
facility in the capital markets.

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+Panda, Calpine Form Business Alliance

Panda Energy International and Calpine Corp. formed a  business alliance
involving eight power plant projects Panda has under development,
representing nearly 10,000 MW of generating capacity. Under terms of the
agreement, Panda will provide development capabilities and carry each of the
projects to the construction phase. Calpine will have exclusive rights to
construct, own and operate the plants. Panda will participate in 50% of the
cash flow, above Calpine's priority return, in all the projects within the
alliance.

Included in the pact is the acquisition by Calpine of 24 General Electric
7FA combustion gas turbines and 12 steam turbines scheduled for delivery in
2001 to 2002. The first project to be developed under the alliance will be
the Oneta Power Partners, L.P., a 1,000 MW  natural gas-fueled power plant
now being built in Coweta, OK. Under terms of the agreement, Calpine will
pay Panda approximately $126 million, which includes reimbursement of
development costs, payments for the gas and steam turbines and the Oneta
facility. The Oneta transaction is expected to close in July. It is
scheduled to go into service in 2002.