17-03-99 San Jose, Calif.-based Calpine announced it has received a favourable Record of Decision from the U.S. Bureau of Indian Affairs approving the Environmental Impact Statement for Calpine's proposed 500 MW natural gas-fired power plant to be constructed on the Fort Mojave Indian Reservation in Mohave County, Arizona.
The decision completes a stringent 18-month environmental review process that allowed the Bureau of Indian Affairs to approve a long-term lease between Calpine and the Fort Mojave Indian Tribe. The lease was finalised, clearing the way for construction of Calpine's $ 275 mm South Point facility to begin in June. The plant will enter commercial operation in early 2001.

The South Point Power Plant represents a milestone for the Arizona power industry -- it is designed to generate electricity on a competitive basis for today's evolving power industry, which is being rapidly deregulated. Calpine will sell power under a variety of short-, mid- and long-term contracts into the Arizona, California and Nevada markets.
"The South Point Power Plant will be a model for economic growth and environmental protection," stated Fort Mojave Indian Tribe Chairperson Nora Helton. "Calpine's project will strengthen our economy by creating jobs, attracting new industry and providing a strong economic base to fund vital community programs."
"We are extremely pleased to be moving forward on building one of the nation's safest, cleanest and most technologically-advanced power plants," said Calpine Senior Vice President John Rocchio. "This plant will help advance Fort Mojave's long-term economic development and provide a much needed source of clean, reliable, low-cost electricity. We look forward to a long and rewarding partnership with the Fort Mojave Tribe."

Fort Mojave is steadily boosting its economy through an increase in agriculture, retail sales and resource development. In addition to providing an attractive source of competitively-priced power to help retain and attract new industry, Calpine's South Point Power Plant will create 250 jobs during construction and 20 permanent positions when it begins commercial operation.

The South Point Power Plant will also significantly advance Calpine's five-year plan to build a 15 GW portfolio of clean, low-cost power generation in key energy markets across the nation. This portfolio will be built through the acquisition of high-efficiency power plants and the development of modern, natural gas-fired facilities.
Calpine's 10.400 GW development program will be comprised of state-of-the-art power plants that will generate electricity up to 40 % more efficiently than the average gas-fired utility plant operating today, and will set a new standard for environmental excellence by dramatically lowering emissions when compared to the nation's current power base.

Calpine is a leading independent power company dedicated to providing customers with clean, low-cost electricity and thermal energy. Calpine currently has 6.400 GW of capacity in operation, under construction or in announced development in 11 states -- enough energy to power 6.5 mm households.