1. CALPINE February 23, 2005 CALIFORNIA PUC CLIMATE CHANGE EN BANC San Francisco, CA PETE CARTWRIGHT President and Chief Executive Officer

2. CALPINE CA PUC Climate Change1February 23, 2005 CALPINE OVERVIEW Power Portfolio  Operation26,500 mw  Construction5,500 mw  Development16,000 mw  TOTAL48,000 mw Fuel  Natural Gas98%  Geothermal2%

3. CALPINE CA PUC Climate Change2February 23, 2005 CALPINE U.S. POWER PORTFOLIO In Operation – Gas-Fired (73 plants) In Operation – Geothermal (19 plants) Under Construction (11 plants) WECC MAPP SPP ERCOT MAIN ECAR SERC FRCC MAAC NPCC-NY NPCC-NE NPCC-O UK not to scale MEXICO

4. CALPINE CA PUC Climate Change3February 23, 2005 CALPINE IN CALIFORNIA Power Portfolio  Operation3,900 mw  Construction2,000 mw  Development3,800 mw  TOTAL9,700 mw Fuel  Natural Gas92%  Geothermal8%

5. CALPINE CA PUC Climate Change4February 23, 2005

6. CALPINE CA PUC Climate Change5February 23, 2005 CO 2 EMISSIONS — COAL vs. NATURAL GAS

7. CALPINE CA PUC Climate Change6February 23, 2005 CLIMATE CHANGE — WHAT CALPINE IS DOING Board Low-Carbon Resolution Concentration on Natural Gas  Efficiency Improvements  Cogeneration Program  Natural Gas Supply Geothermal and Renewables Solid Fuel Gasification and Sequestration

8. CALPINE CA PUC Climate Change7February 23, 2005 WHAT THE UNITED STATES CAN DO Modernize its Power Plant Fleet  Shut Down Half of Old Coal-Fired Plants—442.6 Million mwh  Shut Down All Old Gas-Fired Plants—169.2 Million mwh  Replace With New Gas-Fired Plants + 611.8 Million mwh

9. CALPINE CA PUC Climate Change8February 23, 2005 ECONOMIC CONSEQUENCES Gas Consumption Increases by ~ 2.5 tcf/Year Cost of Electricity Roughly Unchanged  Fuel Cost: + $3.6 Billion Per Year  CO 2 Offsets: —$3 Billion Per Year Adequate Gas-Fired Generation is Available

10. CALPINE CA PUC Climate Change9February 23, 2005 326 Million Tons Per Year ENVIRONMENTAL CONSEQUENCES % Reduction of Power Sector Emissions (2002) NO X 33.8% SO 2 26.5% Hg40.3% PM19.8% CO 2 13.0%

11. CALPINE CA PUC Climate Change10February 23, 2005 IMPACT OF CO 2 REDUCTION 326 Million Tons Per Year  Equals Emissions From 57 Million Cars  87% of Bush’s 2012 Goals  35% of McCain-Lieberman 2010 Goals  15% of Kyoto 2010 Goals

12. CALPINE CA PUC Climate Change11February 23, 2005 WHAT CALIFORNIA CAN DO Encourage:  Energy Efficiency  Renewables Encourage Natural Gas Generation  Shut Down Old Gas-Fired Plants  Eliminate Reliance on Out-of-State Coal Plants  Build LNG Terminals Promote Open Competitive Markets

13. CALPINE CA PUC Climate Change12February 23, 2005 WHAT CALIFORNIA CAN DO (continued) Shut Down Old Gas-Fired Plants—40.8 Million mwh Stop Importing Coal-Fired Power—59.0 Million mwh Additional Renewables to Meet 20% Goal + 26.6 Million mwh Add Modern Gas-Fired Plants + 73.2 Million mwh CO 2 Reduction Potential — 60 Million Tons Per Year

14. CALPINE February 23, 2005 CALPINE