                                  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): August 1, 2002


                               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 August 1, 2002, Calpine Corporation announced financial and
operating results for the quarter ended June 30, 2002.

ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS

(a)      Not applicable.

(b)      Not applicable.

(c)      Exhibits.

     99.0 Press Release dated August 1, 2002


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:  August 2, 2002






















































                                     - 2 -
<PAGE>


EXHIBIT 99.0

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

         CALPINE REPORTS SECOND QUARTER 2002 FULLY DILUTED EPS OF $0.19

                         Revises 2002 Earnings Guidance

     (SAN JOSE,  CALIF.) August 1, 2002 - Calpine  Corporation  [NYSE:CPN],  the
nation's  leading  independent  power  company,  today  announced  financial and
operating results for the quarter ended June 30, 2002.

<TABLE>
<CAPTION>
                                                                           Second Quarter
                                                                           --------------
                                                                2002            2001           % Chg
                                                             ----------       --------         ------
<S>                                                          <C>              <C>               <C>
Megawatt-hours Generated (millions)                                15.7            7.9           99%
Megawatts in Operation (as of 8/1/02)                            16,300          9,300           75%
Revenue (millions)                                           $    1,942       $  1,613           20%
GAAP:
     Net Income (millions)                                   $       73       $    108          (32)%
     Diluted Earnings Per Share                              $     0.19       $   0.32          (41)%
Recurring:
     Net Income (millions) (a)                               $       73       $    132          (45)%
     Diluted Earnings Per Share (a)                          $     0.19       $   0.39          (51)%
EBITDA, as adjusted (millions) (b)                           $      314       $    317           (1)%
Recurring EBITDA, as adjusted (millions) (c)                 $      314       $    354          (11)%
Total Assets (billions)                                      $       22       $     16           38%
<FN>
(a)  For 2001, from recurring  operations,  excluding  effects of merger expense
     and extraordinary  loss. See attached  Supplemental Data for reconciliation
     of GAAP net income to net income from recurring operations.
(b)  Earnings Before Interest, Tax, Depreciation and Amortization,  as adjusted;
     see attached Supplemental Data for reconciliation from net income.
(c)  EBITDA,  as adjusted  excluding effects of merger expense and extraordinary
     loss. See attached  Supplemental  Data for  reconciliation  from EBITDA, as
     adjusted.
</FN>
</TABLE>

     "2002 is  proving  to be one of the  most - if not the  most -  challenging
years for the U.S. power  industry and for Calpine.  Yet we continued to achieve
new  milestones  as we execute the program that we outlined at the  beginning of
the year:  focus on  strengthening  liquidity,  efficiently  operate our plants,
complete projects currently under construction and reduce overhead and operating
costs," stated Calpine  Chairman,  CEO and President Peter  Cartwright.  "In the
quarter just ended, we made significant progress toward strengthening liquidity,
while  adding  to  our  portfolio  of  clean,  fuel-efficient  power  generating
facilities.  With our low-cost fleet, we continued to operate profitably despite
low power prices."

     "Thanks to the hard work and  dedication of our employees,  we have,  since
the beginning of the year,  brought on line ten new energy centers and completed
three  expansion  projects,  adding  approximately  5,300  megawatts  of  clean,
low-cost power generation."

     "On  the  liquidity  front,  Calpine  raised  $2.5  billion  through  major
financings  during the first six months of 2002,  reduced  capital  spending and
sold  assets.  We also have  launched  several  new  initiatives  to  strengthen
Calpine's  cash  resources  and reduce our debt.  We will only  proceed with new
projects that meet our stringent investment criteria, have long-term power sales
contracts, and have access to attractive financing."


2002 SECOND QUARTER FINANCIAL RESULTS

     Financial  results for the three and six months ended June 30, 2002 reflect
a significant  decrease in electricity  prices,  gas prices and spark spreads as
compared  with the same  periods in 2001,  primarily  reflecting  an increase in
supply  and a  softened  demand  resulting  from  depressed  economic  activity.
Declines in market prices for electricity were mitigated by the company's volume
of  long-term  contracts.  The  company did  experience  a  significant  drop in
mark-to-market  gains from trading  activities,  which  reflects  the  company's
decision to limit this activity due to costs  associated with credit support for
trading.







                                     - 3 -
<PAGE>

     Total electrical  generating  production for the three and six months ended
June 30, 2002, increased by 99% and 101%,  respectively,  as the company brought
additional facilities into operation.  The combination of lower spark spreads on
electrical generation, lower revenues on sales of oil and gas, and lower trading
gains  resulted in decreases of 16% and 25%,  respectively,  in gross profit for
the three and six months  ended June 30, 2002 as compared  with the same periods
in 2001.  Calpine's  low-cost  production,  economies  of scale  and  volume  of
long-term contracts mitigated the effect of the depressed power market.

     For the three months ended June 30, 2002,  fully diluted earnings per share
from recurring operations was $0.19,  compared with $0.39 for the second quarter
of 2001. For the same periods,  GAAP fully diluted  earnings per share was $0.19
and $0.32 (after merger  expense),  respectively.  For the six months ended June
30, 2002, fully diluted earnings per share from recurring  operations was $0.30,
compared  with  $0.75  for the six  months  ended  June 30,  2001.  For the same
periods, GAAP fully diluted earnings (loss) per share was $(0.01) (after effects
of  pre-tax  equipment   cancellation   costs  of  $168.5  million)  and  $0.68,
respectively.  Financial  results  for the second  quarter of 2002 also  reflect
higher project  development costs as the company expensed $18.1 million in costs
related to the  cancellation  or indefinite  suspension  of certain  development
projects.


INDUSTRY-LEADING LOW-COST POWER PORTFOLIO

     Calpine remains  committed to providing its customers with clean,  reliable
and low-cost  electricity.  The company's highly efficient natural gas-fired and
geothermal  power plants  represent the cleanest,  most modern fleet of electric
generating facilities in North America.

     Calpine has slowed or suspended capital spending on a significant number of
development  projects.  It remains  focused on  completing  plants  currently in
construction and on projects that have attractive power sales contracts in place
with access to financing.  In addition,  the company continues to reduce costs -
including overhead, operating and capital - as it transitions from a development
company to an operating company.

     Calpine  currently has 70 operating power plants that generate up to 16,300
megawatts of electricity.  In 2004, upon completion of its revised  construction
program,  Calpine expects to produce up to 28,500  megawatts of electricity from
95 power plants located in 23 states,  three  Canadian  provinces and the United
Kingdom. Since last reported in May, recent highlights include:

o    Generated 15.7 million megawatt-hours and produced approximately 35 billion
     cubic feet of gas and gas  equivalents  at costs well below  market  prices
     during the quarter.

o    Signed  a  three-year  power  sales  agreement  with the  Tennessee  Valley
     Authority  (TVA)  to  supply  TVA  with an  option  to  purchase  up to 500
     megawatts per day of baseload capacity from Calpine's  794-megawatt Decatur
     Energy Center beginning in June 2004;

o    Secured  several  mid- and  long-term  power  sales  contracts  with  major
     wholesale  customers,  increasing  Calpine's total  contractual sales since
     December 2001 to approximately 40 customers and nearly 3,300 megawatts; and

o    Completed  construction of six new natural gas-fired energy centers and two
     peaking units, adding over 3,800 megawatts of capacity;  new facilities are
     now providing clean,  reliable electricity for power customers in New York,
     California,  Alabama,  Illinois,  Texas and British Columbia; since January
     2002, Calpine has added approximately 5,300 megawatts of low-cost capacity.


CALPINE ENERGY SERVICES

     Calpine  Energy  Services  (CES)  continues  to  execute  on the  company's
business  model of  entering  long-term  contracts  directly  with  load-serving
entities.  CES remains  focused on securing  low-cost  fuel to supply  Calpine's
generating plants, selling electricity from its generating assets and optimizing
the company's portfolio.

     Calpine  currently  has 125 power  sales  contracts  in place with 80 major
wholesale and industrial  customers.  These contracts  represent $6.6 billion of
above market value when discounted at 9% and have a seven-year  weighted average
life.   Additional  detailed  information   regarding  the  company's  long-term
contracts  can be found in part under the  Supplemental  Data and in full on the
investor relations page of the company's website at www.calpine.com.

     The company  continues to evaluate  joint venture  alliances for its energy
services  group and will only move forward if such  alliance  will add value for
Calpine.







                                     - 4 -
<PAGE>


LIQUIDITY-ENHANCING INITIATIVES

     Calpine  continues to take steps to strengthen its balance sheet and ensure
sufficient liquidity for the company's revised business plans. Recent milestones
since Calpine's last quarterly update include:

o    Funded and  increased  its two-year  secured bank term loan to $1.0 billion
     from $600 million and reduced the size of its secured  corporate  revolving
     credit facilities to $1.0 billion from $1.4 billion; and

o    Received BBB- investment  grade rating on Calpine's term loan and revolving
     credit  facilities from Standard & Poor's;  assigned Ba3 ranking by Moody's
     Investors Service.

     The company  reiterated  its policy that only those projects with long-term
power sales  agreements  in place and which will have access to  financing  will
move into construction.  Calpine will continue to carefully manage  expenditures
and plans to further reduce overhead and operating costs.

     The company also stated that it is carefully  evaluating  alternatives with
its major  equipment  suppliers that may enable Calpine to cancel or restructure
its  contracts  for 89  turbines.  A  significant  component  of  the  company's
equipment  currently on order consists of 112 "F-type" gas turbines for delivery
between 2002 and 2007.

     The following table summarizes the company's currently  anticipated sources
and uses of funds.  These  estimates are based on current  expectations  and are
subject to further change.  The company intends to update this  information only
periodically.

<TABLE>
<CAPTION>
                                                                              ($ in millions)
                                                                          Year-End 2002 Estimates
                                                                            as of August 1, 2002
                                                                          -----------------------
<S>                                                                              <C>     <C>
Sources of Cash
     Available Cash
         Cash on hand                                                            $1,800  (1)
         Estimated 2002 operating cash flow                                         800  (2)
         CES cash collateral replaced with letters of credit                        346  (3)
     Financings
         Equity capital                                                             734
         Credit facilities                                                          250  (4)
         Two-year term loan                                                       1,000
         Construction revolvers                                                     107
         California peaker lease                                                    500  (5)
     Other
         Asset sales currently under negotiations                                   250  (6)
                                                                                 -----------
                Total Sources                                                    $5,787
                                                                                 ===========
____________________
<FN>
(1)  Cash resources include $1.5 billion on hand at 2001 year-end,  $224 million
     received  in January  2002 on the PG&E  receivables  sale and $100  million
     balance of proceeds from the $1.2-billion convertible senior notes offering
     received in early January 2002.
(2)  Annual  operating  cash flow for 2002 is based on a recurring  earnings per
     share   estimate  of  $0.80  to  $1.00,   which  is  expected  to  generate
     approximately  $1.4  billion  to  $1.6  billion  of  recurring  EBITDA,  as
     adjusted.  Annual operating cash flow equals recurring EBITDA, as adjusted,
     plus non-cash operating lease expense of $200 million, less $900 million of
     cash interest.
(3)  Represents  an increase to available  cash from CES cash  deposits  made in
     2001. The majority of this cash collateral has been eliminated both through
     the issuance of letters of credit and commodity price changes.
(4)  Estimated  cash  borrowing  capacity  after  utilizing  approximately  $750
     million of letters of credit capacity.
(5)  Calpine is proceeding with the completion of a  sale/leaseback  transaction
     of its 11 California  peaker  facilities.  This  transaction is expected to
     generate $500 million of cash that will be received  throughout 2002 as the
     power facilities enter commercial operation.
(6)  Calpine is currently in  negotiations  on several asset sales,  which could
     generate  approximately $250 million in cash, including  approximately $147
     million announced to date.

</FN>
</TABLE>







                                     - 5 -
<PAGE>
<TABLE>
<CAPTION>
                                                                              ($ in millions)
                                                                          Year-End 2002 Estimates
                                                                            as of August 1, 2002
                                                                          -----------------------
<S>                                                                              <C>       <C>
USES OF CASH
     Construction capital for current program, including equipment               $2,640      (7)
     Maintenance and gas capital                                                    250
     Purchase of Zero-Coupon Debentures                                             878
     Other debt repayments                                                           75      (8)
     Cash lease payments                                                            330
     Estimated Enron payments                                                       140      (9)
     Payments for future turbines                                                    --
         Turbines for financeable projects                                          261     (13)
         Turbines for future projects                                               457     (10)
                                                                                 ---------------
              TOTAL USES                                                         $5,031
                                                                                 ---------------

NET CASH FLOW                                                                    $  756
                                                                                 ---------------

FUTURE CASH SOURCES
     Canadian Royalty Trust                                                      $  300    (11)
     Zion sale/leaseback                                                            150    (12)
     Financings for future turbines                                                 261    (13)
     Sale of Gilroy notes receivable                                                175    (14)
     Sale of certain assets, including oil & gas properties,
         net of debt repayment                                                      400    (15)
                                                                                 --------------
                TOTAL FUTURE CASH SOURCES                                        $1,286
                                                                                 --------------

TOTAL ESTIMATED CASH RESOURCES                                                   $2,042
                                                                                 ==============
____________________
<FN>
(7)  Construction  capital has been  increased  to reflect  additional  projects
     entering  construction.  These projects  include  several of the California
     peaking  facilities  and  the  Los  Esteros  facility,  all of  which  have
     contracts with the California Department of Water Resources.
(8)  Represents  the repayment of the Michael  Petroleum  note payable and other
     miscellaneous debt.
(9)  Represents an  approximation  of the company's  current estimate of the net
     amount  due  Enron  upon the final  settling  of all  transactions  between
     Calpine and Enron.
(10) Represents  the  current  estimate  for 2002  capital  spending  for future
     turbines (also, see Note 13).
(11) The  company is  establishing  a Canadian  Royalty  Trust to  monetize  its
     Canadian power  generation  assets that could generate  approximately  $300
     million by the end of the third quarter.
(12) Calpine  is   currently   analyzing   an   opportunity   to  enter  into  a
     sale/leaseback  transaction  for its Zion Power  Plant that could  generate
     approximately $150 million of cash by the end of the third quarter.
(13) Certain turbines are assigned to future projects with long-term  contracts,
     providing  Calpine with the  flexibility  to obtain project debt to finance
     this equipment.
(14) The  company  is  evaluating   monetizing  its  Gilroy  Power  Plant  notes
     receivable due from PG&E. This  transaction  could take place by the end of
     the third quarter.
(15) The company has identified  certain additional assets it expects to sell in
     2002.
</FN>
</TABLE>

REVISED 2002 EARNINGS OUTLOOK

     The company is updating its  expectations  for fully  diluted  earnings per
share  before  non-recurring  costs for the year  ending  December  31,  2002 to
approximately $0.80 to $1.00 per share. Fully diluted earnings per share for the
quarters  ending  September  30, 2002 and December 31, 2002,  are expected to be
approximately  $0.40 to $0.55 per share,  and  approximately  $0.10 to $0.15 per
share, respectively.  These results primarily reflect lower than expected market
prices and declining trading and optimization activity. As previously discussed,
the existing fully diluted  earnings per share estimate of  approximately  $1.50
was primarily based on an expected recovery in depressed power prices, which has
not materialized to date.

     "While  2002  continues  to be a  challenging  year  for the  entire  power
industry,  we  see  opportunities  and  advantages  that  can  flow  to  Calpine
shareholders  as a result of the  underlying,  long-term  growth in  electricity
demand,  combined with Calpine's  competitive  fleet of highly  efficient  power
plants  -  the  cleanest,  most  modern  plants  in  the  United  States,"  said
Cartwright.  "We continue to work in a systematic,  disciplined fashion to adapt
Calpine's  business  strategies to ensure that we emerge from today's challenges
better positioned to perform well through all phases of the economic cycle."

                                     - 6 -
<PAGE>

CONFERENCE CALL INFORMATION

     Calpine will host a conference call to discuss second quarter 2002 results.
The  conference  call will occur  Thursday,  August 1, 2002,  at 7:30 am PDT. To
participate  via  the  teleconference   (in  listen-only   mode),   please  dial
1-888-603-6685 at least five minutes before the start of the conference call. In
addition,  Calpine will simulcast the conference call live via the Internet. The
web  cast can be  accessed  and will be  available  for 30 days on the  investor
relations page of Calpine's website at www.calpine.com.


ABOUT CALPINE

     Based in San Jose,  Calif.,  Calpine  Corporation is an  independent  power
company that is dedicated to providing customers with clean, efficient,  natural
gas-fired power  generation.  It generates and markets power,  through plants it
develops,  owns and operates, in 23 states in the United States, three provinces
in  Canada  and in the  United  Kingdom.  Calpine  also is the  world's  largest
producer of renewable  geothermal  energy,  and it owns 1.3 trillion  cubic feet
equivalent of proved natural gas reserves in Canada and the United  States.  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) the timing and extent of  deregulation of energy markets and the
rules and regulations  adopted on a transitional basis with respect thereto (ii)
the timing and extent of changes in  commodity  prices for energy,  particularly
natural gas and electricity  (iii) commercial  operations of new plants that may
be delayed or prevented because of various  development and construction  risks,
such as a failure  to obtain  the  necessary  permits  to  operate,  failure  of
third-party  contractors to perform their contractual  obligations or failure to
obtain  financing  on  acceptable  terms (iv)  unscheduled  outages of operating
plants (v)  unseasonable  weather patterns that produce reduced demand for power
(vi) systemic  economic  slowdowns,  which can adversely  affect  consumption of
power by businesses  and consumers  (vii) cost  estimates  are  preliminary  and
actual costs may be higher than estimated  (viii) a competitor's  development of
lower-cost   generating  gas-fired  power  plants  (ix)  risks  associated  with
marketing  and selling power from power plants in the  newly-competitive  energy
market (x) the successful exploitation of an oil or gas resource that ultimately
depends upon the geology of the resource,  the total amount and costs to develop
recoverable  reserves  and  operations  factors  relating to the  extraction  of
natural gas (xi) the effects on the Company's  business  resulting  from reduced
liquidity  in the  trading and power  industry  (xii) the  Company's  ability to
access the capital  markets on attractive  term (xiii)  sources and uses of cash
are estimates  based on current  expectations;  actual  sources may be lower and
actual uses may be higher than estimated (xiv) the direct or indirect effects on
the  Company's  business of a lowering  of its credit  rating (or actions it may
take in response to  changing  credit  rating  criteria),  including,  increased
collateral   requirements,   refusal  by  the  Company's  current  or  potential
counterparties  to enter into  transactions  with it and its inability to obtain
credit or capital in desired amounts or on favorable terms, and (xv) other risks
identified from  time-to-time in our reports and  registration  statements filed
with the SEC,  including the risk factors  identified in our Quarterly Report on
Form 10Q for the quarter  ended March 31, 2002 and in our Annual  Report on Form
10-K for the year ended  December 31, 2001,  which can be found on the Company's
web site at  www.calpine.com.  All information set forth in this news release is
as of  today's  date,  and  the  Company  undertakes  no  duty  to  update  this
information.






















                                     - 7 -
<PAGE>
<TABLE>
<CAPTION>
                      CALPINE CORPORATION AND SUBSIDIARIES
                 Consolidated Condensed Statements of Operations
            For the Three and Six Months Ended June 30, 2002 and 2001
                    (In thousands, except per share amounts)
                                   (unaudited)


                                                                      Three Months Ended                    Six Months Ended
                                                                           June 30,                             June 30,
                                                                 -----------------------------        -----------------------------
                                                                    2002               2001              2002               2001
                                                                 ----------         ----------        ----------         ----------
<S>                                                              <C>                <C>               <C>                <C>
Revenue:
   Electric generation and marketing revenue
      Electricity and steam revenue........................      $  708,752         $  505,711        $1,328,931         $1,100,870
      Sales of purchased power.............................         868,606            683,196         1,776,907          1,136,798
      Electric power derivative mark-to-market gain........           6,104             68,433            10,270             69,739
                                                                 ----------         ----------        ----------         ----------
        Total electric generation and marketing revenue....       1,583,462          1,257,340         3,116,108          2,307,407
   Oil and gas production and marketing revenue
      Oil and gas sales....................................          52,163            116,319           119,651            273,006
      Sales of purchased gas...............................         302,044            226,693           434,202            355,865
                                                                 ----------         ----------        ----------         ----------
        Total oil and gas production and marketing revenue.         354,207            343,012           553,853            628,871
   Income (loss) from unconsolidated investments in
    power projects.........................................          (1,121)             1,600               323              2,163
   Other revenue...........................................           5,258             10,921             9,869             14,183
                                                                 ----------         ----------        ----------         ----------
           Total revenue...................................       1,941,806          1,612,873         3,680,153          2,952,624
                                                                 ----------         ----------        ----------         ----------
Cost of Revenue:
   Electric generation and marketing expense
      Plant operating expense..............................         118,930             69,259           234,087            153,719
      Royalty expense......................................           4,194              6,916             8,349             17,925
      Purchased power expense..............................         698,176            655,322         1,513,181          1,111,588
                                                                 ----------         ----------        ----------         ----------
        Total electric generation and marketing expense....         821,300            731,497         1,755,617          1,283,232
   Oil and gas production and marketing expense
      Oil and gas production expense.......................          27,836             27,308            54,776             61,591
      Purchased gas expense................................         333,724            218,330           457,418            336,958
                                                                 ----------         ----------        ----------         ----------
        Total oil and gas production and marketing expense.         361,560            245,638           512,194            398,549
   Fuel expense
      Cost of oil and natural gas burned by power plants...         350,848            251,876           677,291            516,439
      Natural gas derivative mark-to-market loss (gain)....           3,203            (23,446)            9,595            (30,995)
                                                                 ----------         ----------        ----------         ----------
        Total fuel expense.................................         354,051            228,430           686,886            485,444
   Depreciation, depletion and amortization expense........         110,122             72,144           213,995            144,157
   Operating lease expense.................................          36,263             27,449            72,397             55,460
   Other expense...........................................           2,204              3,490             4,794              5,989
                                                                 ----------         ----------        ----------         ----------
           Total cost of revenue...........................       1,685,500          1,308,648         3,245,883          2,372,831
                                                                 ----------         ----------        ----------         ----------
              Gross profit.................................         256,306            304,225           434,270            579,793
Project development expense................................          24,713              4,372            36,051             20,211
Equipment cancellation cost................................              --                 --           168,471                 --
General and administrative expense.........................          53,601             50,537           113,862             86,622
Merger expense.............................................              --             35,606                --             41,627
                                                                 ----------         ----------        ----------         ----------
   Income from operations..................................         177,992            213,710           115,886            431,333
Interest expense...........................................          67,058             43,331           128,369             63,256
Distributions on trust preferred securities................          15,387             15,387            30,773             30,562
Interest income............................................          (9,762)           (20,531)          (21,938)           (39,889)
Other income, net..........................................          (2,766)            (3,291)          (11,859)            (9,018)
                                                                 ----------         ----------        ----------         ----------
   Income (loss) before provision (benefit) for income taxes        108,075            178,814            (9,459)           386,422
Provision (benefit) for income taxes.......................          35,559             69,849            (5,578)           158,830
                                                                 ----------         ----------        ----------         ----------
   Income (loss) before extraordinary gain (loss) and
    cumulative effect of a change in accounting principle..          72,516            108,965            (3,881)           227,592
Extraordinary gain (loss), net of tax provision of $--,
 $834, $1,362 and $834.....................................              --             (1,300)            2,130             (1,300)
Cumulative effect of a change in accounting principle,
 net of tax provision of $--, $--, $--and $669...............            --                 --               --               1,036
                                                                 ----------         ----------        ----------         ----------
              Net income (loss)............................      $   72,516         $  107,665        $   (1,751)        $  227,328
                                                                 ==========         ==========        ==========         ==========









                                     - 8 -
<PAGE>
Basic earnings (loss) per common share:
   Weighted average shares of common stock outstanding.....         356,158            302,729           331,745            301,641
   Income (loss) before extraordinary gain (loss) and
    cumulative effect of a change in accounting principle..      $     0.20         $     0.36        $    (0.01)        $     0.75
   Extraordinary gain (loss)...............................      $       --         $       --        $       --         $       --
   Cumulative effect of a change in accounting principle...      $       --         $       --        $       --         $       --
                                                                 ----------         ----------        ----------         ----------
              Net income (loss)............................      $     0.20         $     0.36        $    (0.01)        $     0.75
                                                                 ==========         ==========        ==========         ==========
Diluted earnings (loss) per common share:
   Weighted average shares of common stock outstanding
    before dilutive effect of certain convertible securities        365,606            318,255           331,745            317,544
   Income (loss) before dilutive effect of certain
    convertible securities, extraordinary gain (loss) and
    cumulative effect of
    a change in accounting principle.......................      $     0.20         $     0.34        $    (0.01)        $     0.72
   Dilutive effect of certain convertible securities (1)...      $    (0.01)        $    (0.02)       $       --         $    (0.04)
                                                                 ----------         ----------        ----------         ----------
   Income (loss) before extraordinary gain (loss) and
    cumulative effect of a change in accounting principle..      $     0.19         $     0.32        $    (0.01)        $     0.68
   Extraordinary gain (loss)...............................      $       --         $       --        $       --         $       --
   Cumulative effect of a change in accounting principle...      $       --         $       --        $       --         $       --
                                                                 ----------         ----------        ----------         ----------
              Net income (loss)............................      $     0.19         $     0.32        $    (0.01)        $     0.68
                                                                 ==========         ==========        ==========         ==========
__________
<FN>
The financial  information presented above and in the Supplemental Data attached
hereto is subject to  adjustment  until the company files its Form 10-Q with the
Securities and Exchange Commission for the quarter ended June 30, 2002.

(1)  Includes  the  effect of the  assumed  conversion  of  certain  convertible
     securities. No convertible securities were included in the six months ended
     2002  amounts as the  securities  were  antidilutive.  For the three months
     ended June 30, 2002,  and for the three and six months ended June 30, 2001,
     the assumed conversion  calculation added 85,320,  41,964 and 49,379 shares
     of common stock and $11,306,  $7,507 and $20,838 to the net income results,
     respectively.
</FN>
</TABLE>

















































                                     - 9 -
<PAGE>

                      CALPINE CORPORATION AND SUBSIDIARIES
                                Supplemental Data
                                   (unaudited)
<TABLE>
<CAPTION>
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NET INCOME
FROM RECURRING OPERATIONS
                                                           Three           Diluted           Three           Diluted
                                                       Months Ended    Earnings (loss)   Months Ended    Earnings (loss)
                                                       June 30, 2002       per Share     June 30, 2001       per Share
                                                       -------------   --------------    -------------   ---------------
(in thousands, except per share amounts)

<S>                                                       <C>               <C>             <C>               <C>
GAAP net income......................................     $ 72,516          $ 0.19          $107,665          $ 0.32
   Extraordinary loss, net of tax provision..........           --              --             1,300              --
   Cumulative effect of a change in accounting
    principle, net of tax provision..................           --              --                --              --
   Equipment cancellation cost, net of tax benefit...           --              --                --              --
   Merger expense, net of tax benefit................           --              --            23,195            0.07
                                                          --------          ------          --------          ------
        Net income from recurring operations.........     $ 72,516          $ 0.19          $132,160          $ 0.39
                                                          ========          ======          ========          ======
</TABLE>

<TABLE>
<CAPTION>
                                                            Six            Diluted            Six            Diluted
                                                       Months Ended    Earnings (loss)   Months Ended    Earnings (loss)
                                                       June 30, 2002       per Share     June 30, 2001       per Share
                                                       -------------   --------------    -------------   ---------------
(in thousands, except per share amounts)

<S>                                                       <C>               <C>             <C>               <C>
GAAP net income (loss)...............................     $ (1,751)         $(0.01)         $227,328          $ 0.68
   Extraordinary loss (gain), net of tax provision...       (2,130)          (0.01)            1,300              --
   Cumulative effect of a change in accounting
    principle, net of tax provision..................           --              --            (1,036)             --
   Equipment cancellation cost, net of tax benefit...      109,506            0.32                --              --
   Merger expense, net of tax benefit................           --              --            27,311            0.07
                                                          --------          ------          --------          ------
        Net income from recurring operations.........     $105,625          $ 0.30          $254,903          $ 0.75
                                                          ========          ======          ========          ======
</TABLE>

<TABLE>
<CAPTION>
CASH FLOW DATA

                                                              Six Months Ended
                                                                  June 30,
                                                        ----------------------------
                                                            2002             2001
                                                        -----------      -----------
(in thousands)

<S>                                                     <C>              <C>
Cash provided by operating activities................   $   463,445      $   100,723
Cash used in investing activities....................    (2,558,322)      (2,783,385)
Cash provided by financing activities................     1,094,269        3,328,105
Effect of exchange rate changes on cash and
 cash equivalents....................................         3,958               --
                                                        -----------      -----------
      Net increase (decrease) in cash and cash
       equivalents...................................   $  (996,650)     $   645,443
                                                        ============     ===========
</TABLE>





















                                     - 10 -
<PAGE>

<TABLE>
<CAPTION>
RECONCILIATION OF GAAP NET INCOME (LOSS) TO EBITDA, AS ADJUSTED (1)

                                                             Three Months Ended                 Six Months Ended
                                                                  June 30,                          June 30,
                                                         ----------------------------      ---------------------------
                                                            2002              2001            2002             2001
                                                         ----------        ----------      ----------       ----------
(in thousands)

<S>                                                       <C>               <C>             <C>              <C>
GAAP net income (loss)...............................     $ 72,516          $107,665        $ (1,751)        $227,328
   (Income) loss from unconsolidated investments in
    power projects...................................        1,121            (1,600)           (323)          (2,163)
   Distributions from unconsolidated investments in
    power projects...................................            9             1,246              18            2,459
                                                          --------          --------        --------         --------
        Adjusted net income (loss)...................       73,646           107,311          (2,056)         227,624

   Interest expense..................................       67,058            43,331         128,369           63,256
   1/3 of operating lease expense....................       12,087             9,150          24,132           18,487
   Distributions on trust preferred securities.......       15,387            15,387          30,773           30,562
   Provision (benefit) for income taxes..............       35,559            69,849          (5,578)         158,830
   Depreciation, depletion and amortization expense..      110,122            72,144         213,995          144,157
                                                          --------          --------        --------         --------
      EBITDA, as adjusted............................     $313,859          $317,172        $389,635         $642,916
                                                          ========          ========        ========         ========
</TABLE>

<TABLE>
<CAPTION>
RECONCILIATION OF EBITDA, AS ADJUSTED TO RECURRING EBITDA, AS ADJUSTED

                                                             Three Months Ended                 Six Months Ended
                                                                  June 30,                          June 30,
                                                         ----------------------------      ---------------------------
                                                            2002              2001            2002             2001
                                                         ----------        ----------      ----------       ----------
(in thousands)

<S>                                                       <C>               <C>             <C>              <C>
EBITDA, as adjusted..................................     $313,859          $317,172        $389,635         $642,916
Equipment cancellation cost..........................           --                --         168,471               --
Merger expense.......................................           --            35,606              --           41,627
Extraordinary loss (gain), net of tax provision                 --             1,300          (2,130)           1,300
Cumulative effective of a change in accounting
 principle, net of tax provision                                --                --              --           (1,036)
                                                          --------          --------        --------         --------
      Recurring EBITDA, as adjusted..................     $313,859          $354,078        $555,976         $684,807
                                                          ========          ========        ========         ========
</TABLE>

<TABLE>
<CAPTION>
SUPPLEMENTARY POWER DATA

                                                              Three Months Ended                 Six Months Ended
                                                                  June 30,                          June 30,
                                                         ----------------------------      ---------------------------
                                                            2002              2001            2002             2001
                                                         ----------        ----------      ----------       ----------

<S>                 <C>                                  <C>               <C>             <C>              <C>
Generation (in MWh) (2)..............................    15,720,000        7,878,000       30,434,000       15,117,000

Average electric price realized (per MWh)............        $55.88           $67.60           $52.30           $74.51

Average spark spread realized (per MWh)..............        $27.56           $31.97           $26.74           $36.07
</TABLE>


















                                     - 11 -
<PAGE>

<TABLE>
<CAPTION>
NATURAL GAS SUPPLEMENTARY DATA

                                                             Three Months Ended                 Six Months Ended
                                                                  June 30,                          June 30,
                                                         ----------------------------      ---------------------------
                                                            2002              2001            2002             2001
                                                         ----------        ----------      ----------       ----------
(in Bcfe)
<S>                                                        <C>              <C>              <C>              <C>
Natural Gas Production
   United States.....................................         14                 9              27               18
   Canada............................................         21                24              42               48
                                                              --                --              --               --
      Total..........................................         35                33              69               66
                                                              ==                ==              ==               ==


Average Daily Production Rate........................      0.385             0.370           0.379            0.368
                                                           -----             -----           -----            -----
</TABLE>

<TABLE>
<CAPTION>
CALPINE CONTRACTUAL PORTFOLIO - AS OF JUNE 30, 2002

                                           2002*            2003             2004             2005             2006
                                         ---------        --------         --------         --------         --------
<S>                                         <C>             <C>              <C>              <C>              <C>
Estimated Generation
 (in Millions of mwh)
   - Baseload.......................        67.4            159.3            176.2            179.1            179.1
   - Peaking........................        11.4             23.7             24.6             24.9             24.8
                                            ----            -----            -----            -----            -----
      Total.........................        78.8            183.0            200.8            204.0            203.9
                                            ====            =====            =====            =====            =====

Contractual Generation
 (in Millions of mwh)
   - Baseload.......................        42.3             76.2             69.5             72.2             69.1
   - Peaking........................         9.0             17.5             15.6             15.6             14.5
                                            ----             ----             ----             ----             ----
      Total.........................        51.3             93.7             85.1             87.8             83.6
                                            ====             ====             ====             ====             ====

% Sold
   - Baseload.......................        63%              48%              39%              40%              39%
   - Peaking........................        79%              74%              63%              63%              58%
     - Total........................        65%              51%              42%              43%              41%

Contractual Spark Spread                  $23.14           $22.74           $24.31           $23.02           $23.13

* July - December 2002
</TABLE>

































                                     - 12 -
<PAGE>

<TABLE>
<CAPTION>
                                                                                As of               As of
Capitalization                                                              June 30, 2002     December 31, 2001
                                                                            -------------     -----------------

<S>                                                                               <C>                 <C>
Cash balance (in billions)..............................................          $0.5                $1.5

Total debt (in billions) (3)............................................         $13.2               $12.7

Debt to capitalization ratio (3)........................................           72%                 75%

Present value of operating leases (in billions) ........................          $2.2                $2.3

Unconsolidated debt of equity method investments (estimated, in
 billions) (4)..........................................................          $0.2                $0.2

(in thousands):

Short-term debt
   Notes payable and borrowings under lines of credit, current portion..    $    10,523          $    23,238
   Capital lease obligation, current portion............................          2,277                2,206
   Construction/project financing, current portion......................         97,363                   --
   Zero-Coupon Convertible Debentures Due 2021..........................             --              878,000
                                                                            -----------          -----------
        Total short-term debt...........................................        110,163              903,444

Long-term debt
   Notes payable and borrowings under lines of credit,
    net of current portion..............................................      1,077,453               74,750
   Capital lease obligation, net of current portion.....................        206,700              207,219
   Construction/project financing, net of current portion...............      3,484,097            3,393,410
   Convertible Senior Notes Due 2006....................................      1,200,000            1,100,000
   Senior notes.........................................................      7,085,886            7,049,038
                                                                            -----------          -----------
        Total long-term debt............................................     13,054,136           11,824,417

           Total debt...................................................    $13,164,299          $12,727,861

   Company-obligated mandatorily redeemable convertible
    preferred securities of subsidiary trusts...........................    $ 1,123,537          $ 1,123,024
   Minority interests...................................................    $    40,000          $    47,389
   Total stockholders' equity (5).......................................    $ 3,867,860          $ 3,010,569
                                                                            -----------          -----------

Total capitalization....................................................    $18,195,696          $16,908,843
                                                                            ===========          ===========

Debt to capitalization ratio
Total debt..............................................................    $13,164,299          $12,727,861
Total capitalization....................................................    $18,195,696          $16,908,843
Debt to capitalization..................................................         72%                 75%
----------
<FN>
(1)  This non-GAAP  measure is presented not as a measure of operating  results,
     but rather as a measure of our  ability to service  debt.  It should not be
     construed as an alternative to either (i) income (loss) from  operations or
     (ii) cash flows from operating  activities to be disclosed in the company's
     Form 10-Q for the quarter  ended June 30, 2002. It is defined as net income
     less  income  from  unconsolidated  investments,  plus cash  received  from
     unconsolidated investments,  plus provision for tax, plus interest expense,
     plus one-third of operating lease expense, plus depreciation, depletion and
     amortization, plus distributions on trust preferred securities.
(2)  Does not include  MWh  generated  by  unconsolidated  investments  in power
     projects.
(3)  The  Convertible  Senior  Notes Due 2006  were  issued  to  repurchase  the
     Zero-Coupon  Convertible  Debentures  Due 2021,  which were  repurchased in
     April 2002.  Therefore,  the company's total capitalization at December 31,
     2001 exceeds the expected 2002 capitalization.
(4)  Amounts based on Calpine's ownership percentage.
(5)  Includes other  comprehensive loss ("OCI") of $118,707 at June 30, 2002 and
     $226,574 at December  31, 2001.  Excluding  OCI from  stockholders'  equity
     would not  change  the debt to  capitalization  ratio at June 30,  2002 and
     would change the ratio to 74% at December 31, 2002.
</FN>
</TABLE>











                                     - 13 -

