----- Forwarded by Jeff Dasovich/NA/Enron on 05/31/2001 09:54 AM -----

	Jean Munoz <jmunoz@mcnallytemple.com>
	05/30/2001 07:00 PM
		 
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		 cc: 
		 Subject: IEP Response to SJ Mayor Gonzales Support of Metcalf Plant

IEP issued the following response to San Jose Mayor Gonzales' support of the 
Metcalf Energy Center.   Below is also a copy of Calpine's release.

Thanks,
Jean 

Independent Energy Producers Respond to  
San Jose Mayor Gonzales? Support of Metcalf Energy Center

   Metcalf power plant developers, Calpine Corporation and Bechtel 
Enterprises, reached an agreement earlier today with San Jose Mayor Ron 
Gonzales . a decision that could help bring 600-megawatts of critically 
needed clean, efficient electricity to the San Jose region and California . 
enough power to light 600,000 homes.

   In response, Jan Smutny-Jones, Executive Director of the Independent 
Energy Producers, said:

   "We commend Mayor Gonzales? leadership in advocating a real solution to 
help solve California?s current electricity crisis . a decision that will 
help bring desperately needed power on-line to serve the citizens of the 
South Bay.

   "This crisis can only be resolved if we all work together to find real 
solutions, instead of pointing fingers . which only creates an unstable 
political and regulatory environment which will further complicate the supply 
problem in California.

   "Mayor Gonzales is clearly taking a step in the right direction.  We hope 
others follow his lead."

#         #         #

Calpine/Bechtel's Metcalf Energy Center Receives Support From San Jose Mayor 
Gonzales

PR Newswire
05/30/01, 5:15p
(Copyright , 2001, PR Newswire)

SAN JOSE, Calif., May 30 /PRNewswire/ -- Calpine Corporation (NYSE: CPN), the 
San Jose, Calif.-based independent power company, and San Francisco 
based-Bechtel Enterprises Holdings, Inc. announced an agreement with San Jose 
Mayor Ron Gonzales that would help advance development of the proposed 
600-megawatt Metcalf Energy Center (MEC), currently before the California 
Energy Commission for licensing. Under the terms of the agreement, the City 
of San Jose would support and provide municipal services for construction and 
operations of MEC in the Coyote Valley of San Jose. The city would provide 
all requested municipal services in a timely manner at standard rates and 
terms applicable to similar users, and it would process annexation of the 
portion of the site not already within the city limits. The agreement also 
allows for MEC to provide additional benefits for the community and local 
businesses. The San Jose City Council will consider the agreement at its 
regular meeting scheduled June 5.

"This agreement provides resolution of the remaining concerns we have heard 
from local officials, developers and the community-at-large," said Curt 
Hildebrand, Calpine Vice President, General Manager, Calpine/Bechtel Joint 
Development. "We are pleased to have forged this lasting partnership with the 
City of San Jose and the community by more widely sharing the benefits of the 
Metcalf Energy Center."

The 600-megawatt, natural gas-fueled Metcalf Energy Center will significantly 
benefit electricity consumers by adding clean, efficient and urgently needed 
power generation directly into the South Bay energy market.

The Metcalf Energy Center is a development of San Jose-based Calpine 
Corporation, one of the nation's leading independent providers of electric 
power, and Bechtel Enterprises Holdings, Inc., the development, financing and 
ownership affiliate of the Bechtel organization, one of the world's premier 
engineering and construction companies. 

About Calpine

Calpine Corporation, based in San Jose, Calif., is dedicated to providing 
customers with reliable and competitively priced electricity. Calpine is 
focused on clean, efficient, natural gas-fired generation and is the world's 
largest producer of renewable geothermal energy. Calpine has launched the 
largest power development program in North America. To date, the company has 
approximately 32,200 megawatts of base load capacity and 7,200 megawatts of 
peaking capacity in operation, under construction, pending acquisitions and 
in announced development in 29 states and Canada. The company was founded in 
1984 and is publicly traded on the New York Stock Exchange under the symbol 
CPN. For more information about Calpine, visit its Website at www.calpine.com.

This news release discusses certain matters that may be considered 
"forward-looking" statements within the meaning of Section 27A of the 
Securities Act of 1933, as amended, and Section 21E of the Securities 
Exchange Act of 1934, as amended, including statements regarding the intent, 
belief or current expectations of Calpine Corporation ("the Company") and its 
management. Prospective investors are cautioned that any such forward-looking 
statements are not guarantees of future performance and involve a number of 
risks and uncertainties that could materially affect actual results such as, 
but not limited to, (i) changes in government regulations, including pending 
changes in California, and anticipated deregulation of the electric energy 
industry, (ii) commercial operations of new plants that may be delayed or 
prevented because of various development and construction risks, such as a 
failure to obtain financing and the necessary permits to operate or the 
failure of third-party contractors to perform their contractual obligations, 
(iii) cost estimates that are preliminary and which actual cost may be higher 
than estimated, (iv) the assurance that the Company will develop additional 
plants, (v) a competitor's development of a lower-cost gas-fired power plant, 
(vi) receipt of regulatory approvals or (vii) the risks associated with 
marketing and selling power from power plants in the newly competitive energy 
market. Prospective investors are also referred to the other risks identified 
from time to time in the Company's reports and registration statements filed 
with the Securities and Exchange Commission.