-----Original Message-----
From: Stein, Neil [mailto:neil.stein@csfb.com]
Sent: Wednesday, July 18, 2001 12:31 PM
To: undisclosed-recipients
Subject: CPN: Announces New Texas Power Sales Contracts;
EarningsVisibili ty Enhanced


Good Afternoon:

Attached, please find our recent FC note on Calpine.

 <<cpn071801.pdf>> 
Summary
1) We reiterate our Strong Buy rating on Calpine.  Over the last 2 days, the
company has announced a number of significant power sales agreements
associated with its Texas capacity.
2) On July 17, CPN announced that it had entered into 2 agreements with
Reliant Energy services to provide 1,000 MW of power over a 5 year period.
On July 18, CPN announced an agreement with Shell Oil to provide up to 3,000
MW of power, also over a 5 year period.  All the contracts commence on
January 1, 2002, which coincides with the beginning of retail competition in
Texas.
3) Other details relating to pricing and contract structure were not
disclosed.
4) In Texas, CPN currently owns 2,337 MW capacity in operation, 3,786 MW
under construction and 1,007 MW under development.
5) Importantly, as a result of these announcements and other recent
agreements, Calpine's Texas capacity is now 85% sold forward for the next 2
years.  Overall, this hedged position gives us additional comfort in CPN's
ability to meet or exceed our 2001-2003 EPS estimates of $1.94, $2.35 and
$3.08, respectively.
6) Some investors have expressed concern about Calpine's exposure to
potential overbuilding in the Texas market.  CPN's recent contract
announcements should reassure investors that the company is actively taking
steps to manage and minimize its market price risk in this region.  

Regards,

Neil Stein   212/325-4217
Bryan Sifert   212/325-3906


This message is for the named person's use only.  It may contain 
confidential, proprietary or legally privileged information.  No 
confidentiality or privilege is waived or lost by any mistransmission.
If you receive this message in error, please immediately delete it and all
copies of it from your system, destroy any hard copies of it and notify the
sender.  You must not, directly or indirectly, use, disclose, distribute, 
print, or copy any part of this message if you are not the intended 
recipient. CREDIT SUISSE GROUP and each of its subsidiaries each reserve
the right to monitor all e-mail communications through its networks.  Any
views expressed in this message are those of the individual sender, except
where the message states otherwise and the sender is authorised to state 
them to be the views of any such entity.
Unless otherwise stated, any pricing information given in this message is 
indicative only, is subject to change and does not constitute an offer to 
deal at any price quoted.
Any reference to the terms of executed transactions should be treated as 
preliminary only and subject to our formal written confirmation.