May 26, 1999

CONTACT: David Christy

916/353-4436, christy@wapa.gov

Sutter Power Project Record of Decision Issued

FOLSOM, Calif. - The Record of Decision for the Sutter Power Project was issued today. The ROD documents Western Area Power Administration's decision to enter into an interconnection agreement with Calpine Corporation. The agreement will provide Calpine with interconnection to Western's Keswick-Elverta/Olinda-Elverta

230-kv transmission lines. The basis for the decision is documented in the ROD.

The ROD may be viewed on Western's Web site at www.wapa.gov or the Department of Energy's Web site at http://tis.eh.doe.gov/nepa. Copies can also be obtained by contacting Loreen McMahon, Environmental Project Manager, at 916-353-4460 or mcmahon@wapa.gov.

Calpine proposes to construct the project in Sutter County, Calif., on a portion of a 77-acre parcel of land owned by Calpine. Sutter would consist of a 500-megawatt natural gas-fired, combined cycle generating facility. Approximately 4 miles of 230-kV generation tie line and a new 230-kV switching station would connect the power plant to Western's lines. The new lines would be constructed as a double circuit transmission line, but initially operated as a single circuit.

Calpine submitted a request to Western for a direct interconnection of the project with Western's electrical transmission system. In response to this request, Western completed an Interconnection Feasibility Study and determined that certain direct interconnection facilities, modification of associated facilities, and operational adjustments to Western's transmission system were needed to accommodate the Sutter generation.

Sutter would be operated as a "merchant plant," selling power on a short-term and midterm basis to customers, and on the spot market. Calpine will assume all economic costs. Power produced by this plant would be sold at market prices and made available to all market participants.

Western annually markets and transmits more than 10,000 megawatts of power from hydroelectric powerplants owned and operated by the Bureau of Reclamation and the U.S. Army Corps of Engineers in 15 central and western states.