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): June 5, 2003


                               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

NEWS RELEASE                                               CONTACTS 408-995-5115
                                        Media Relations: Katherine Potter, x1168
                                         Investor Relations: Rick Barraza, x1125


            CALPINE SUBSIDIARY ANNOUNCES INTENT TO MONETIZE CONTRACTS

  Transaction To Significantly Advance Company's $2.3 Billion Liquidity Program

     (SAN JOSE, CALIF.) June 5, 2003 - Calpine Corporation [NYSE:CPN], a leading
North  American power company,  today  announced that Power Contract  Financing,
L.L.C. (PCF), a wholly owned, stand-alone subsidiary of Calpine Energy Services,
L.P. (CES),  intends to sell  approximately $800 million of Senior Secured Notes
Due 2010.  The Senior Secured Notes will be secured by fixed cash flows from one
of CES'  fixed-priced,  long-term  power  sales  agreements  with  the  State of
California Department of Water Resources and a new fixed-priced, long-term power
purchase agreement with a third party.

     Proceeds and fees are subject to market  conditions as of the closing date,
including  interest  rates.  Net  proceeds,  after  funding of debt reserves and
payment  of  transaction   costs  and  fees,   will  be  used  to  fund  capital
expenditures.  The  noteholders'  recourse will be limited to the assets of PCF.
Calpine will not provide a guarantee of the Senior Secured Notes Due 2010 or any
other form of credit support.

     The Senior  Secured  Notes Due 2010 will be offered in a private  placement
under Rule 144A, have not been registered  under the Securities Act of 1933, and
may not be offered in the United  States  absent  registration  or an applicable
exemption  from  registration   requirements.   This  press  release  shall  not
constitute an offer to sell or the  solicitation of an offer to buy.  Securities
laws  applicable  to  private  placements  under  Rule 144A  limit the extent of
information that can be provided at this time.







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:  June 5, 2003