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<TEXT>

                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                                    FORM 8-K

                                 CURRENT REPORT
                       Pursuant to Section 13 or 15(d) of

                       the Securities Exchange Act of 1934


         Date of Report (Date of earliest event reported): July 6, 2001


                               CALPINE CORPORATION

                            (A Delaware Corporation)

                        Commission File Number: 001-12079

                  I.R.S. Employer Identification No. 77-0212977


                           50 West San Fernando Street

                           San Jose, California 95113

                            Telephone: (408) 995-5115




<PAGE>
ITEM 5.       OTHER EVENTS

     On  July  6,  2001,  Calpine  Corporation,   the  San  Jose,   Calif.-based
independent  power  company,  announced  that  it has  entered  into  a  binding
agreement with Pacific Gas and Electric  Company (PG&E) to modify and assume all
of Calpine's  Qualifying  Facility (QF) contracts with PG&E, subject to approval
by the U. S. Bankruptcy Court for the Northern District of California,  which is
scheduled for July 12, 2001.


ITEM 7.       FINANCIAL STATEMENTS AND EXHIBITS

(a)  Not applicable.

(b)  Not applicable.

(c)  Exhibits.

     99.0 Press  release dated July 6, 2001,  announcing  the  modification  and
     assumption of Calpine's California QF Contracts by PG&E.

SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.



                               CALPINE CORPORATION


                         By: /s/ Charles B. Clark, Jr.
                             -------------------------
                              Charles B. Clark, Jr.
                          Vice President and Controller
                            Chief Accounting Officer
July 9, 2001


<PAGE>
EXHIBIT 99.0

                                             NEWS RELEASE Contact:  408/995-5115
                                        Media Relations:  Bill Highlander, X1244
                                        Investor Relations:  Rick Barraza, X1125


                PG&E TO ASSUME CALPINE'S CALIFORNIA QF CONTRACTS
                   Calpine to Receive all Past Due Receivables

     (SAN JOSE, CALIF.) July 6, 2001 - Calpine Corporation  [NYSE:CPN],  the San
Jose,  Calif.-based  independent  power  company,  announced  today  that it has
entered into a binding agreement with Pacific Gas and Electric Company (PG&E) to
modify and assume all of Calpine's Qualifying Facility (QF) contracts with PG&E.
Calpine and PG&E today filed a stipulation  with the U.S.  Bankruptcy  Court for
the Northern District of California (Bankruptcy Court) seeking authorization for
PG&E to assume  the  modified  Calpine QF  contracts.  The  Bankruptcy  Court is
scheduled to approve the agreement on July 12, 2001.

     Under the terms of the  agreement,  Calpine  will  continue  to receive its
contractual  capacity  payments plus a five-year fixed energy price component of
approximately 5.37 cents per kilowatt-hour,  which is consistent with the recent
California Public Utilities Commission Decision No. 01-06-015.  In addition, all
past due receivables  under the QF contracts will be elevated to  administrative
priority status and paid to Calpine, with interest, upon the effective date of a
confirmed  plan of  reorganization.  Administrative  claims enjoy  priority over
payments made to the general unsecured  creditors.  As of April 6, 2001, Calpine
had recorded  approximately $267 million in accounts  receivable with PG&E under
its QF contracts.

     QF  facilities  are  an  integral  part  of  California's   energy  market,
representing  more than 20 percent of the state's power supply.  Calpine's 11 QF
projects  provide close to 600 megawatts of electricity  to Northern  California
customers.

     James Macias, Calpine senior vice president,  states, "Calpine is the first
power  company  to modify its QF  contracts  with PG&E to ensure  that  Northern
California consumers will continue to benefit from these affordable and reliable
energy resources.  As the state's leading developer of modern energy facilities,
we remain committed to California's power industry."

     Calpine will host a conference  call to discuss the PG&E agreement today at
8:30 am Pacific  Daylight  Time (11:30 am Eastern  Daylight  Time).  The call is
available in a listen-only mode by dialing  1-800-370-0906 five minutes prior to
the  start  of  the   conference   call.   International   callers  should  dial
1-973-872-3100. In addition, Calpine will simulcast the conference call live via
the Internet  today.  The webcast can be accessed  and will be available  for 30
days on the investor relations page of Calpine's website at www.calpine.com.

     Based in San Jose,  Calif.,  Calpine  Corporation is dedicated to providing
customers with reliable and competitively priced electricity. Calpine is focused
on clean,  efficient,  natural  gas-fired  generation and is the world's largest
producer of renewable geothermal energy.  Calpine has launched the largest power
development  program in North America.  To date,  the company has  approximately
34,000  megawatts of base load capacity and 7,200 megawatts of peaking  capacity
in  operation,   under  construction,   pending  acquisition  and  in  announced
development in 29 states, the UK and Canada. The company was founded in 1984 and
is publicly traded on the New York Stock Exchange under the symbol CPN. For more
information about Calpine, visit its website at www.calpine.com.

     This  news  release  discusses  certain  matters  that  may  be  considered
"forward-looking" statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as  amended,  including  statements  regarding  the  intent,  belief or  current
expectations  of  Calpine   Corporation  ("the  Company")  and  its  management.
Prospective investors are cautioned that any such forward-looking statements are
not  guarantees  of  future  performance  and  involve  a number  of  risks  and
uncertainties  that could  materially  affect  actual  results  such as, but not
limited to, (i) changes in government regulations,  including pending changes in
California,  and anticipated  deregulation of the electric energy industry, (ii)
commercial  operations of new plants that may be delayed or prevented because of
various  development  and  construction  risks,  such  as a  failure  to  obtain
financing  and the  necessary  permits to operate or the failure of  third-party
contractors to perform their contractual  obligations,  (iii) cost estimates are
preliminary  and actual cost may be higher than  estimated,  (iv) the  assurance
that the Company will develop additional plants, (v) a competitor's  development
of a lower-cost  generating gas-fired power plant, and (vi) the risks associated
with  marketing  and selling  power from power  plants in the newly  competitive
energy  market.  Prospective  investors are also  cautioned  that the California
energy  environment  remains  volatile,  especially  in light of Pacific Gas and
Electric  Company's Chapter 11 bankruptcy  filing,  including  uncertainties and
delays  inherent in the bankruptcy  process,  where the court sits as a court of
equity and must  reconcile  the  competing  interests of multiple  parties.  The
Company's  management is working closely with a number of parties to resolve the
current  uncertainty,  while  protecting  the  Company's  interests.  Management
believes that a final  resolution will not have a material adverse impact on the
Company.  Prospective  investors are also referred to the other risks identified
from time to time in the Company's  reports and  registration  statements  filed
with the Securities and Exchange Commission.

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