Peter Cartwright

    "Deregulation is opening tremendous opportunities for entrepreneurial companies like Calpine," said Peter Cartwright, chairman, chief executive officer and president of Calpine Corp. "Back in 1994, we had a power plant portfolio of 141 mega-watts. Today, it is 3,355 net megawatts, representing a 254% compound annual growth rate. Five years from now it will be 25,000 megawatts-180 times bigger in just ten years."

    Calpine's well-defined growth strategy in the U.S. power market is twofold: first, to expand and diversify its domestic portfolio of power projects and to enhance the performance and efficiency of its existing power plants.

    Initially, Calpine provided engineering, management, finance and operation and maintenance services to the independent power industry. Today Calpine has interests in 58 operating facilities-totaling 3,355 net megawatts-which were acquired or developed at a steady pace beginning in the late 1980s.

    Calpine successfully completed its initial public offering in September 1996-the largest in the history of the independent power industry. Calpine's original investors when the company was founded in 1984 were Guy F. Atkinson Construction Co. of South San Francisco and Electrowatt Inc., a major Swiss utility based in Zurich. Electro-watt eventually bought out Atkinson's interests, making Calpine an indirect, wholly-owned subsidiary.

    When Electrowatt decided to divest of its energy assets, the timing was right, Cartwright said, to have the public buy out Electrowatt. With access to public markets for both debt and equity, the company is now in a comfortable position to embark on its plan to develop and acquire high-efficiency natural gas and geothermal facilities.

    Calpine is active in 14 states, with corporate headquarters in San Jose, CA and regional offices in Pleasanton, CA; Houston, TX; and Boston, MA. Calpine has launched one the nation's most progressive development programs and expects to build its power portfolio to 25,000 megawatts by the end of 2004. The company currently has eight gas-fired plants in construction, totaling approximately 3,380 net megawatts, and an additional 2,600 net megawatts in announced development.

    To help power its aggressive development program, Calpine acquired 18 gas turbines in 1999 and purchased 45 gas turbines in 1998. Earlier this summer, Calpine set another industry first-a $1 billion revolving construction facility.

    Since April 1995, Calpine has acquired close to 2,300 net megawatts of gas-fired and geothermal operating plants. In 1999 alone, Calpine acquired Pacific Gas and Electric Company's 14 geothermal power plants at The Geysers, making Calpine the world's largest geothermal provider. The company expects to add 400 megawatts of gas-fired production by year-end.

    To assure itself of reliable gas for its California plants, Calpine acquired Montis Niger, Inc. in 1997. Montis Niger is a natural gas production company with an estimated 10 billion cubic feet of proven natural gas reserves in the Sacramento Valley and an 80-mile pipeline system. In September 1999, Calpine further expanded its fuels capabilities, acquiring Houston, Texas-based Sheridan Energy, Inc., a natural gas exploration and production company. The company's financial performance mirrors its operational achievements.

    "There's a huge market opportunity out there for new modern power plants to replace today's antiquated power fleet and to supply tomorrow's ever-increasing need for power," continued Cartwright "Calpine has proven its ability to grow in 15 years of business through a consistent, proven strategy to achieve our 25,000-megawatt program."