0. PI-BASED PERFORMANCE MONITORING SYSTEM FOR COMBINED CYCLE POWER GENERATION TECHNOLGY
4/21/2004

1. About Calpine Founded in 1984 Headquartered in San Jose, Calif.
Calpine has 87 energy centers in 21 states in the U.S., as well as in Canada and the United Kingdom with a total capacity of about 22,000 megawatts
Uses clean, proven technologies: natural gas combined-cycle and geothermal energy

2. A Large Portfolio Calpine offices Corporate headquarters Boston, MA
Calgary, Canada
Dublin, CA
Ft. Collins, CO
Houston, TX
Jupiter, FL
Northbrook, IL
Portland, OR
Tampa, FL
Folsom, CA
Corporate headquarters
San Jose, CA
As of 4/21/2003

3. Growth History
Other for Calpine includes only geothermal and TL simple cycle.

4. Performance Monitoring Necessity
Large, regionally diverse fleet requires central performance monitoring to provide
the following;
Standard fleet reporting/comparison
Operational benchmarking
Asset improvement and degradation quantification
Value
Economic decisions based on operating performance data
Internal knowledge and understanding of equipment
Efficient and reliable operation
Other for Calpine includes only geothermal and TL simple cycle.

5. Why Use PI?
Calpine chose to use OSI-PI as the foundation for our Performance Monitoring System
Existing PI infrastructure eliminated additional capital expense
Internal reliance and control
PI provides all the required functional components of 3rd party systems
Development team and end-users already familiar with PI tools/systems
Value
Zero additional capital cost associated with PI
Zero new training
Zero external reliance
Zero risk
Other for Calpine includes only geothermal and TL simple cycle.

6. PERFORMANCE MONITORING SYSTEM ARCHITECTURE
Consumable Products
Wholesale Energy Products
Retail Power
Renewable Energy
Overview of Calpine PI network
PI Performance Equations
PI Process Book as GUI
PI Datalink and Excel employed as on-line QC

7. Calpine PI Infrastructure
PI at Calpine
Calpine standardized on PI as their operations historian in early 2001
PI is installed at 86 of Calpine’s 89 generating facilities
The fleet PI infrastructure consists of 62 production PI servers and 24 PI API nodes
Calpine PI data for every site is available remotely to every Calpine employee, from plant personnel to executive management, because all Calpine PI systems are connected to the Calpine WAN
Other for Calpine includes only geothermal and TL simple cycle.

9. PI Performance Equations
PI Performance Equation Subsystem used as backbone to calculate performance data
Average of 350 Performance Equations per site constructed by Calpine Performance Engineers
Calculations based on standard calculations as well as plant specific calculations
Daily averaging functions used to easier identify performance trends and create summary reporting
Other for Calpine includes only geothermal and TL simple cycle.

10. PI Process Book as GUI
PI Process Book used to view raw and calculated performance data
13 Monitoring Displays and 14 Trend Displays
Multiple individual PDI files used as opposed to a single PIW file
Navigation created using VB Code
Other for Calpine includes only geothermal and TL simple cycle.

11. Specific values: Net MW 12/31/1997 = 1268 12/31/2002 = 20,000
C O M P OU N D A N N U A L G R O W T H R A T E
T O
Specific values:
Net MW
12/31/1997 = 1268
12/31/2002 = 20,000
CPN Stock
12/31/1997 = $1.86
12/12/2002 = $3.47

13. PI Datalink as On-Line Quality Control
Data Quality Critical
PI Datalink used to ensure data integrity
Standard statistical evaluation of data used to evaluate data integrity
PI Datalink used to summarize data and draw conclusions
Other for Calpine includes only geothermal and TL simple cycle.

14. TECHNICAL CHALLENGES Text Based Filtering in Performance Equations
TECHNICAL CHALLENGES
Text Based Filtering in Performance Equations
Getting the Most out of the Performance Equation Subsystem
Correction Calculation Challenges

15. Text Based Filtering
Identified a need to display why corrections were not being applied
Solution must not affect summary data
Early solution was to display “-1” when corrections not applied
Other for Calpine includes only geothermal and TL simple cycle.

16. Other for Calpine includes only geothermal and TL simple cycle.

17. Text Based Filtering Solution
Final solution was to display text when corrections not applied
Text to be used in the tags must be present in the “System” Digital Set within the PI System
Text is not taken into account when summary equations are applied
Other for Calpine includes only geothermal and TL simple cycle.

18. Other for Calpine includes only geothermal and TL simple cycle.

19. Maintaining the PI-PE Subsystem
Found that 200 calculations is the approximate limit for a Performance Equation Scheduler
Set up multiple schedulers to spread the load
With the number of equations, and the complexity of the equations, Performance Equation Schedulers would fail from time to time
Set up Performance Equation Schedulers to be restarted regularly to minimize impact.
Used 3rd Party Software to notify when calculations are experiencing issues
Other for Calpine includes only geothermal and TL simple cycle.

20. Technical Challenges The Challenges The Solutions
Site instrumentation errors / lack of site instrumentation
Each plant uses different tag naming conventions
PI was originally configured primarily as a Data Historian – PI tags typically have various levels of compression and exception enabled
Gas Turbine based performance indicators vary drastically with load and ambient conditions
The Solutions
Correction, re-calibration, procurement of critical site instrumentation
Standard PI tag naming convention applied to primary site tags (fuel, power, ambient conditions)
PI compression and exception removed on critical performance tags – filtering applied where required
Load Normalization
Apply OEM ambient corrections at normalized (base) load
Use PI-based text substitution to allow functional averaging and Process Book trending
Specific values:
Net MW
12/31/1997 = 1268
12/31/2002 = 20,000
CPN Stock
12/31/1997 = $1.86
12/12/2002 = $3.47

21. Performance Trend of
CTG Corrected MW

22. Value Realization Examples Value
Use PI based Performance Monitoring to conduct DWR contractual annual capacity tests on (15) simple cycle peakers in CA
Quantify recoverable CTG degradation by analyzing pre and post offline water wash performance
Remote monitoring identifies operational procedure mispractice and optimizes plant performance
Value
Eliminate dedicated on-site test personnel and temporary test instrumentation – Estimated savings of $200K annually
Accurate recoverable degradation data allows the sites to optimize CTG water washing based on market conditions
In a low spark spread market, every optimization opportunity can significantly contribute to Calpine’s profitability

23. Performance Monitoring System vs. Performance Test
Calpine Simple Cycle Peaker Plant Performance Test Results Comparison
Calpine 3 x 1 Combined Cycle Plant Performance Test Results Comparison
Other for Calpine includes only geothermal and TL simple cycle.
The Performance Monitor calculations fall within the 1% uncertainty band for power and slightly outside the 1.5% uncertainty band for heat rate. This is very good considering that the tests use different instrumentation and the acceptance test uses more measurements and more corrections in their calculations.

24. Performance Quantification
Specific values:
Net MW
12/31/1997 = 1268
12/31/2002 = 20,000
CPN Stock
12/31/1997 = $1.86
12/12/2002 = $3.47

25. Performance Quantification

26. Performance Quantification
CTG 2 Water Wash
CTG 1 Water Wash
CTG 2 Water Wash
CTG 1 Water Wash

27. Performance Reporting
Specific values:
Net MW
12/31/1997 = 1268
12/31/2002 = 20,000
CPN Stock
12/31/1997 = $1.86
12/12/2002 = $3.47

28. Performance Reporting
Specific values:
Net MW
12/31/1997 = 1268
12/31/2002 = 20,000
CPN Stock
12/31/1997 = $1.86
12/12/2002 = $3.47

29. Summary
Calpine is successfully leveraging OSI-PI technology in a Performance Monitoring environment directly resulting in;
Increased plant availability and reliability
Predictive maintenance scheduling
A historical plant performance database that can be used to effectively optimize plant and fleet performance
Better decision support data available to dispatch and trading
INCREASED CALPINE PROFITABILITY !
Specific values:
Net MW
12/31/1997 = 1268
12/31/2002 = 20,000
CPN Stock
12/31/1997 = $1.86
12/12/2002 = $3.47