1. CALPINE July 22, 2003 Wyoming Pipeline Authority Calpine Corporation KEY ISSUES FOR NATURAL GAS AND POWER COLIN COE DIRECTOR, FUELS

2. CALPINE July 22, 2003R0603081 CALPINE OVERVIEW

3. CALPINE July 22, 2003R0603082 FORWARD LOOKING STATEMENT Certain of the information discussed in this presentation may contain forward-looking statements regarding future events or the future financial performance of Calpine Corporation. We wish to caution you that these statements are only estimates and that actual events or results may differ materially. We refer you to the documents the Company files from time to time with the Securities and Exchange Commission, specifically the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. These documents contain and identify important factors that could cause the Company’s actual future results to differ materially from those contained in such forward-looking statements.

4. CALPINE July 22, 2003R0603083 FOCUSED STRATEGY North America Power Markets Modern, Gas-Fired Plants Wholesale Markets Balanced Gas / Power Portfolio

5. CALPINE July 22, 2003R0603084 To Paraphrase Mark Twain…. “rumors of our death …” 2001 provides a challenging year: Weak Economy – poor spark spreads The Enron shock affects confidence Equity Financing option vanishes Debt Financing Challenges But we have survived – “what doesn’t kill you makes you stronger”

6. CALPINE July 22, 2003R0603085 Spark Spreads – an overview Efficiency Factor = Heat Rate 7000 HRt vs 10,000 HRt per hour Gas price x my HRt = my cost 7000 HRt x $5.00 = $35 MW If market is a 10,000 HRt = $50 MW My “spark spread” is $50 – 35 =$15 $15/MW/hr x 24 x 500 MW = $180k 84,000 MMBtu/d vs 120,000/day

7. CALPINE July 22, 2003R0603086 FINANCIAL GROWTH 19,046 $7,458

8. CALPINE July 22, 2003R0603087 LONG-TERM OUTLOOK REMAINS ATTRACTIVE Electricity is a Vital Component of Our Society Consumption is Up (1)  4.11% - 2002 Over 2001  3.48% - YTD 2003 Over Same Period in 2002 Significant New Project Cancellations Continued Pressure on Aging, Polluting Fleet Prices Trending Upward (1) Source: Edison Electric Institute

9. CALPINE July 22, 2003R0603088 CALPINE’S GROWING PORTFOLIO Net Megawatts Assumes No New Projects 7,755 19,249 26,330 28,800 29,940

10. CALPINE July 22, 2003R0603089 CALPINE’S POWER PORTFOLIO

11. CALPINE July 22, 2003R06030810 CALPINE CORPORATION — A PREMIER POWER COMPANY (1)Source: Platts’ “202 Independent Power Companies” Largest U.S. Independent Power Companies (1) 27,600 20,686 17,831 15,006 14,441 CoalCCGTOther

12. CALPINE July 22, 2003R06030811 CALPINE’S GROWING GAS CONSUMPTION * 2004 Consumption Approximately Equal to 22 mmtpy *

13. CALPINE July 22, 2003R06030812 CALPINE’S GAS PORTFOLIO 1 tcf of Proved Reserves Provides Hedge to Fixed-Price Revenue Contracts Exploit Proved Reserves Value in Excess of $1.3 Billion Active Producer Services Group

14. CALPINE July 22, 2003R06030813 CURRENT CALPINE GAS RESERVES & PRODUCTION LEVELS 950 Bcfe278 Mmcfe/day

15. CALPINE July 22, 2003R06030814 ECONOMIC AND REGULATORY BARRIERS IN MEETING DEMANDS FOR NATURAL GAS Capital Markets — Credit Commodity Markets — Indexes Supply/Demand — Perspectives

16. CALPINE July 22, 2003R06030815 CAPITAL MARKETS — CREDIT Tightened Capital Markets Credit Downgrades Increased Credit Requirements FERC Actions NAESB Efforts Pipeline Expansions

17. CALPINE July 22, 2003R06030816 COMMODITY MARKETS — INDEXES Fewer Participants Reduced Transparency and Confidence Price Indexes

18. CALPINE July 22, 2003R06030817 GAS PRODUCTION -THAT 70’S SHOW Gas: Enough for Present Customers, but How About the New Ones? — Nation’s Business, July 1971 Natural Gas Users Howl Over Shortages — Business Week; November 17, 1973 We’re Running Out of Gas — The New York Times Magazine; March 19, 1972

19. CALPINE July 22, 2003R06030818 U.S. 2002 TOTAL GAS CONSUMPTION Total U.S. Natural Deliveries January-November 2002 (U.S. EIA)

20. CALPINE July 22, 2003R06030819 U.S. POWER MARKET – GAS FOCUS Huge Market Growing Demand Inefficient Plants Environmental Concerns

21. CALPINE July 22, 2003R06030820 EMISSIONS Units Natural Gas (combined-cycle) New Coal Percent Reduction (% gas cleaner than coal) Plant Heat Rate (net)Btu/kWh7,0008,800 Nitrogen Oxide (NO x ) lb/mmBtu lb/mwh 0.0092 0.064 0.07 0.616 86.9% 89.5% Sulfur Dioxide (SO2) lb/mmBtu lb/mwh 0.0006 0.0042 0.16 1.4080 99.6% 99.7% Carbon Dioxide (CO2) lb/mmBtu lb/mwh 118.9 832 206 1,813 42.3% 54.1% Carbon Monoxide (CO) lb/mmBtu lb/mwh 0.0067 0.047 0.12 1.0560 94.4% 95.56% Mercury (Hg) lb/mmBtu lb/mwh0 0.0000023 0.000020100.0% Respirable Particulates (PM)lb/mmBtu0.0150.01816.7%

22. CALPINE July 22, 2003R06030821 CONCLUSIONS Gas Fired Electric Generation Will Grow Natural Gas Production Must Increase Pipeline Infrastructure Must be Proactive Creative Gas Contracting Needed

23. CALPINE July 22, 2003 CALPINE