                       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): December 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  December  6,  2001,  Calpine  Corporation,  the San Jose,  Calif.-based
independent power company,  announced an agreement with Pacific Gas and Electric
Company (PG&E),  whereby PG&E has agreed to pay all of its outstanding  payables
owed to Calpine  Corporation's  qualifying  facility (QF)  affiliates  for power
deliveries  made to PG&E during the period of December 1, 2000 through  April 6,
2001.

ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS

(a) Not applicable.

(b) Not applicable.

(c) Exhibits.

     99.0 Press  release  dated  December 6, 2001.


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.
                      Senior Vice President and Controller
                            Chief Accounting Officer

Date: December 7, 2001


<PAGE>


EXHIBIT 99.0

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

              CALPINE ANNOUNCES AGREEMENT ESTABLISHING PAYMENT PLAN
                     FROM PG&E FOR ALL PAST DUE RECEIVABLES

         Proposed Agreement Ensures Full Payment from PG&E by November 2002

     (SAN JOSE, CALIF.) December 6, 2001 -- Calpine Corporation [NYSE:CPN],  the
San Jose, Calif.-based independent power company, today announced it has entered
into an agreement with Pacific Gas and Electric Company (PG&E), whereby PG&E has
agreed to pay all of its  outstanding  payables  owed to  Calpine  Corporation's
qualifying facility (QF) affiliates  (Calpine) for power deliveries made to PG&E
during the period of December 1, 2000 through  April 6, 2001.  PG&E owes Calpine
approximately  $265 million,  plus interest.  Beginning  December 31, 2001, PG&E
will pay Calpine  monthly  principal and interest  payments until the earlier of
November  30,  2002,  or the date when  PG&E's  plan of  reorganization  becomes
effective.  This agreement is subject to bankruptcy  court  approval.  A hearing
date is scheduled for December 21, 2001.

     The proposed  agreement with PG&E  establishes that interest will accrue at
five  percent  per  annum  since  the  initial  default  dates of  Calpine's  QF
contracts.  All interest accrued since the initial default dates will be paid by
December 31, 2001. Interest will continue to accrue on outstanding  principal at
this rate until PG&E has paid Calpine in full.

     Calpine  sells power to PG&E under the terms of  long-term  QF contracts at
eleven facilities, representing nearly 600 megawatts of electricity for northern
California power customers.

     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.  The company  currently has approximately
9,200  megawatts  of base  load and  1,900  megawatts  of  peaking  capacity  in
operation, 17,100 megawatts under construction and 18,400 megawatts in announced
development.  Calpine's  projects are located in 29 states in the United States,
three provinces in Canada and in the United Kingdom.  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) the assurance that
the Company will develop additional plants, (iv) a competitor's development of a
lower-cost  generating  gas-fired power plant, and (v) the risks associated with
marketing  and selling power from power plants in the newly  competitive  energy
market, including volatility of commodity prices. 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.


