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 12, 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







ITEM 5.       OTHER EVENTS

     On  July  12,  2001,  Calpine  Corporation,   the  San  Jose,  Calif.-based
independent power company,  announced the U.S. Bankruptcy Court for the Northern
District  of  California  approved  the  agreement  authorizing  Pacific Gas and
Electric Company (PG&E) to assume Calpine's  modified  Qualifying  Facility (QF)
contracts.

ITEM 7.       FINANCIAL STATEMENTS AND EXHIBITS

(a)     Not applicable.

(b)     Not applicable.

(c)     Exhibits.

     99.0 Press  release  dated July 12, 2001,  announcing  the U.S.  Bankruptcy
     Court's  authorization  of PG&E's  assumption  of Calpine's  California  QF
     Contracts.


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 14, 2001





EXHIBIT 99.0

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


                    BANKRUPTCY COURT AUTHORIZES ASSUMPTION OF
                        CALPINE'S CALIFORNIA QF CONTRACTS

                   Calpine to Receive All Past Due Receivables

(SAN JOSE,  CALIF.)  July 12, 2001 -- Calpine  Corporation  [NYSE:CPN],  the San
Jose,  Calif.-based  independent  power company,  announced the U.S.  Bankruptcy
Court for the Northern  District of  California  today  approved  the  agreement
authorizing PG&E to assume Calpine's modified QF contracts.

Effective immediately, PG&E has assumed all of Calpine's QF contracts. Under the
terms of the agreement,  Calpine  continues 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 are now elevated to  administrative  priority
status and will be 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.

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 7,380 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.