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): April 15, 2004


                               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, Ext. 1168
                                     Investor Relations: Rick Barraza, Ext. 1125


       Calpine Agrees to Restructure King City Power Plant Operating Lease

               Transactions to Reduce Calpine Debt by $42 Million

     (SAN JOSE,  Calif.) /PR  Newswire - First Call/ April 15, 2004 - As part of
the recently announced Calpine Power Income Fund (CPIF) transaction, Calpine has
agreed to modify the terms of its long-term operating lease for the 120 megawatt
King City  Power  Plant  located  in King  City,  Calif.  Upon  closing  of this
transaction, the company expects to:

     o    Extend the term of the King City operating lease from 2018 to 2028;

     o    Restructure the lease's rent payment schedule;

     o    Receive  cash from the sale of  securities  originally  pledged to the
          lessor to secure the lessee's  obligations  under the lease. This will
          provide  Calpine  with  cash  of  approximately  $87  million,  net of
          transactions costs;

     o    Receive  approximately  $40 million  through the issuance of a 10-year
          promissory   note  by  Calpine   Canada  Power  Ltd.,  a  wholly-owned
          subsidiary of Calpine, to a CPIF affiliate; and

     o    Redeem the  existing  preferred  equity  interest  issued in 2003 by a
          Calpine subsidiary in connection with the King City facility.

     Together,  these  transactions  will result in a reduction of approximately
$42  million of  Calpine  debt and are  expected  to provide  the  company  with
approximately  $45 million in net cash proceeds.  Closing is contingent upon the
completion of CPIF's transaction, which is expected to close on or about May 19,
2004.

     The King City  Power  Plant is  located  approximately  100 miles  south of
Calpine's  San  Jose  headquarters.  The  plant  supplies  electricity  under  a
long-term contract to Pacific Gas and Electric Company.

     Calpine  Corporation,  celebrating  its 20th  year in  power in 2004,  is a
leading North  American power company  dedicated to providing  electric power to
customers  from  clean,  efficient,   natural  gas-fired  and  geothermal  power
facilities. The company generates power at plants it owns or leases in 21 states
in the United States,  three provinces in Canada and in the United Kingdom,  and
is  building  a power  plant in  Mexico.  Calpine  is also the  world's  largest
producer of renewable geothermal energy, and owns or has access to approximately
one trillion cubic feet  equivalent of proved natural gas reserves in the United
States and Canada. The company is listed on the S&P 500, and was named FORTUNE's
2004 America's Most Admired Energy  Company.  Calpine was founded in 1984 and is
publicly  traded on the New York Stock  Exchange  under the symbol CPN. For more
information, visit 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) unscheduled outages of operating plants; (iv)
risks  associated  with  marketing  and selling  power from power  plants in the
newly-competitive  energy  market;  (v) the  timing and extent of changes in the
capital markets, including the Canadian income fund market; and (vi) other risks
identified  from   time-to-time  in  the  Company's   reports  and  registration
statements  filed with the SEC,  including  the risk factors  identified  in its
Annual Report on Form 10-K for the year ended December 31, 2003,  which can also
be found on the Company's website 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.






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:  April 16, 2004