1. CALPINE March 2, 2004 HARVARD ELECTRICITY POLICY GROUP Natural Gas and Electricity Ron Walter Executive Vice President

2. CALPINE R0204151March 2, 2004 CALPINE CORPORATION — THE FIRST 20 YEARS Largest Independent Power Company in North America Most Modern, Efficient Fleet of Power Generation Assets  87 Plants, 22,130 mw in Operation Today  Growing to Over 30,000 mw in 2006 Proved Gas Reserves – 1 tcf Assets Managed by Calpine Energy Services  3.4% of U.S. Electrical Consumption  3% of U.S. Natural Gas Supply

3. CALPINE R0204152March 2, 2004 CALPINE’S GROWING PORTFOLIO Net Megawatts Assumes No New Projects

4. CALPINE R0204153March 2, 2004 CALPINE’S POWER PORTFOLIO In Operation 3 1 1 1 1 1 1 1 1 39 1 1 1 1 10 2 2 1 1 2 1 3 1 3 1 3 4 2 1 1 3 1 87 Under Construction 13 2 1 1 12 - New Projects 1 - Expansion Projects

5. CALPINE R0204154March 2, 2004 MOST EFFICIENT NORTH AMERICAN POWER GENERATION FLEET Combined-Cycle Megawatts By Company Operation Construction 0 5,000 10,000 15,000 20,000 25,000 30,000 FPL (1) FPL (2) Southern (2) Xcel (2) Southern (1) Progress (1) Exelon (2) Calpine Duke (2) Megawatts (1) Regulated (2) Non-Regulated Source: Company Data

6. CALPINE R0204155March 2, 2004 Natural Gas Will Remain the Fuel of Choice for Power Generation

7. CALPINE R0204156March 2, 2004 THE PRICE OF NATURAL GAS WILL BE REASONABLE Responds Well to Market Forces Spot Prices vs. Long-Term Prices Expected Range of Prices  < $2.50/mmbtu – No New Investment  > $5.00/mmbtu – New Supply Calpine Strategy to Manage Price Risk

8. CALPINE R0204157March 2, 2004 THE SUPPLY OF NATURAL GAS WILL REMAIN SUFFICIENT Proven Reserves Don’t Tell the Whole Story 2003 Report of Potential Gas Committee  1,311 Trillion Cubic Feet  65X Annual Production Rate  3.3% Increase in Supply From 2000 New Supply  Eastern Canada  Deep Gulf  MacKenzie Delta  Alaska  LNG LNG  Large World Resource Base  U.S. Deliverability  1 bcf 2003  4 bcf 2004  9 bcf 2007

9. CALPINE R0204158March 2, 2004 NATURAL GAS CONSUMPTION FOR POWER GENERATION GROWING MODESTLY New Natural Gas-Fired Plants are 40% More Efficient During the Height of the New Power Plant Additions January 2002 – January 2003  Megawatt-Hours Increased by 8%  Gas Consumption Increased by 2% Less Efficient Plants are Being Displaced / Retired

10. CALPINE R0204159March 2, 2004 ENVIRONMENTAL BENEFITS OF NATURAL GAS Lower Air Emissions  98.7% Less NOx Than Coal  99.9% Less SO 2  65% Less CO 2  100% Less Mercury Lower Land Use 40% – 60% Lower Water Consumption Reduces Global Warming

11. CALPINE R02041510March 2, 2004 MARKET FORCES ARE BEST DRIVER FOR CHOICES ON FUEL USE Government Intervention Has Not Been Successful  Nuclear Energy  Fuel Use Act  Clean Coal  Renewable Standards Economics and Environmental Considerations Should Shape Fuel Use Supply and Price of Natural Gas Will Best be Moderated by Market Forces