Document:

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                                                                   EXHIBIT 10.12

                                                                  EXECUTION COPY

                    MASTER CONSTRUCTION MANAGEMENT AGREEMENT

                                      AMONG

                  CALPINE CONSTRUCTION MANAGEMENT COMPANY, INC.

                           CALPINE GENERATING COMPANY

                                       AND

                            CERTAIN FACILITY OWNERS

                           DATED AS OF MARCH 23, 2004

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                                TABLE OF CONTENTS

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ARTICLE 1. DEFINITIONS; GENERAL REFERENCES......................................    1
    1.1     Definitions.........................................................    1
    1.2     General Terms.......................................................    1

ARTICLE 2. EXHIBITS.............................................................    2
    2.1     Exhibits............................................................    2
    2.2     Conflicting Provisions..............................................    2

ARTICLE 3. APPOINTMENT; SERVICES GENERALLY......................................    2
    3.1     Appointment.........................................................    2
    3.2     Services............................................................    3
    3.3     Personnel...........................................................    5
    3.4     Authority of Construction Manager...................................    5
    3.5     Right to Request Instruction.......................................     5
    3.6     Cooperation and Consultation.......................................     6
    3.7     Construction Manager Representative.................................    6
    3.8     Limitations on Authority............................................    6

ARTICLE 4. OWNER'S RESPONSIBILITIES.............................................    6
    4.1     General.............................................................    6
    4.2     Construction Financing..............................................    6
    4.3     Owner Representative................................................    6
    4.4     Site Surveys; Access................................................    7
    4.5     Permits, Easements,etc..............................................    7
    4.6     Professional Services...............................................    7
    4.7     Prompt Provision....................................................    7
    4.8     Hazardous Substances................................................    7
    4.9     Taxes...............................................................    7

ARTICLE 5. CONSTRUCTION MANAGER'S COMPENSATION..................................    7
    5.1     Generally...........................................................    7
    5.2     Budget..............................................................    8
    5.3     Payment.............................................................    8
    5.4     Interest............................................................    8
    5.5     Accounting and Auditing.............................................    8
    5.6     No Fees.............................................................    9

ARTICLE 6. INDEMNIFICATION AND LIMITATIONS ON LIABILITY.........................    9
    6.1     Indemnification By Construction Manager.............................    9
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    6.2     Indemnification by Facility Owner...................................    9
    6.3     Environmental Indemnity.............................................    9
    6.4     Limitation of Liability.............................................    9
    6.5     Limitations on Recourse.............................................   10
    6.6     No Warranties or Guarantees.........................................   10

ARTICLE 7. TERM AND TERMINATION.................................................   10
    7.1     Term ...............................................................   10
    7.2     Termination.........................................................   10
    7.3     Termination for Convenience.........................................   11
    7.4     Rights Upon Termination.............................................   12
    7.5     Termination Payment.................................................   12
    7.6     Suspension..........................................................   12

ARTICLE 8.  FORCE MAJEURE.......................................................   13
    8.1     Excuse for Force Majeure............................................   13
    8.2     Legal Changes.......................................................   13

ARTICLE 9.  INSURANCE...........................................................   13
    9.1     Owner's Insurance...................................................   13
    9.2     Construction Manager's Insurance....................................   13
    9.3     Evidence of Insurance...............................................   14
    9.4     Endorsements........................................................   14
    9.5     Coverage under Owner's Policies.....................................   14

ARTICLE 10. MISCELLANEOUS.......................................................   14
    10.1    Assignment..........................................................   14
    10.2    Governing Law;Forum.................................................   14
    10.3    Entire Agreement....................................................   14
    10.4    Survival............................................................   15
    10.5    Waivers.............................................................   15
    10.6    Notices.............................................................   15
    10.7    Partial Invalidity..................................................   15
    10.8    Not for Benefit of Third Parties....................................   16
    10.9    Headings............................................................   16
    10.10   Counterparts........................................................   16
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    APPENDIX A             Definitions
    APPENDIX B             Facility Descriptions
    EXHIBIT A              Services Description
    EXHIBIT B              Construction Management Budget

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                    MASTER CONSTRUCTION MANAGEMENT AGREEMENT

            THIS MASTER CONSTRUCTION MANAGEMENT AGREEMENT (the "Agreement"),
dated as of March 23, 2004 (the "Effective Date"), is entered into by and among
CALPINE GENERATING COMPANY, LLC, a Delaware limited liability company ("CGC"),
each of the wholly-owned subsidiaries of CGC listed on the signature page hereof
(each a "Facility Owner"), and CALPINE CONSTRUCTION MANAGEMENT COMPANY, INC., a
Delaware corporation ("Construction Manager").

                                    RECITALS

      A. Each of Facility Owners owns and is presently constructing gas-fired,
combined-cycle electric generation facilities described on Appendix B attached
hereto (each a "Facility").

      B. The Facility Owners are indirect, wholly-owned subsidiaries of CGC.

      C. Each Facility Owner desires to enter into this Agreement with
Construction Manager pursuant to which Construction Manager shall provide the
Services with respect to such Facility Owner's Facility as more fully described
herein.

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth herein and other valuable consideration, the parties hereby agree as
follows:

ARTICLE 1. DEFINITIONS; GENERAL REFERENCES

      1.1 Definitions. Capitalized terms used in this Agreement without other
definition shall have the meanings specified in Appendix A to this Agreement,
unless the context requires otherwise.

      1.2 General Terms. As used in this Agreement, the terms "herein,"
"herewith," and "hereof are references to this Agreement (including its
Exhibits), taken as a whole, the term "includes" or "including" shall mean
"including, without limitation," and references to a "Section," "subsection,"
"clause," "Article," "Exhibit," "Appendix," or "Schedule" shall mean a Section,
subsection, clause, Article, Exhibit, Appendix or Schedule of this Agreement, as
the case may be, unless in any such case the context requires otherwise. All
references to a given agreement, instrument or other document shall be a
reference to that agreement, instrument or other document as modified, amended,
supplemented and restated through the date as of which such reference is made,
and reference to a law includes any amendment or modification thereof. The
singular shall include the plural and the masculine shall include the feminine
and neuter, and vice versa. Where the words "required," "approved,"
"satisfactory," "determined," "acceptable," "decision" or words of like import
are used in this Agreement, action by Facility Owner is indicated unless the
context clearly indicates otherwise.

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ARTICLE 2. EXHIBITS

      2.1 Exhibits. This Agreement consists of this document itself and the
following Exhibits which are specifically made a part hereof by reference:

          EXHIBIT A -  Services Description
          EXHIBIT B -  Construction Management Budget

      2.2 Conflicting Provisions. In the event of any conflict between this
document and any Exhibit hereto, the terms and provisions of this Agreement, as
amended from time to time, shall control. In the event of any conflict among the
Exhibits, Exhibit A shall have priority over Exhibit B. Subject to the
foregoing, the several instruments forming part of this Agreement are to be
taken as mutually explanatory of one another and in the case of ambiguities or
discrepancies within or between such parts the same shall be explained and
adjusted by the issuance of a written instruction by Facility Owner.

ARTICLE 3. APPOINTMENT; SERVICES GENERALLY

      3.1 Appointment.

      (a) Each Facility Owner hereby appoints and retains Construction Manager
to provide, throughout the Term, the Services with respect to such Facility
Owner's Facility on the terms and conditions set forth in this Agreement.
Construction Manager hereby accepts such appointment and agrees to perform the
Services in accordance with the terms and conditions of this Agreement. This
Agreement, including all exhibits and attachments, shall constitute a separate
contract between each Facility Owner and Construction Manager with respect to
the Facility owned by such Facility Owner, and "Facility Owner" shall be
understood to mean the owner of the Facility in question as indicated on
Appendix B. Construction Manager and each Facility Owner agree that, upon the
reasonable request of either party, they will execute separate individual
construction management agreements with respect to such Facility Owner's
Facility on the same terms and conditions (modified as necessary to reflect the
fact that only one Facility is covered) as are set forth in this Agreement. The
obligations and liabilities of Construction Manager and the applicable Facility
Owner with respect to a given Facility are independent of the obligations and
liabilities of Construction Manager and the other Facility Owners with respect
to the other Facilities, and events giving rise to a right to terminate this
Agreement with respect to one Facility shall not entitle CGC, another Facility
Owner or Construction Manager, as applicable, to terminate this Agreement with
respect to any other Facility.

      (b) If CGC sells or otherwise transfers a Facility subject to this
Agreement as permitted under the agreements between CGC and the holders of the
Secured Obligations, CGC, the applicable Facility Owner and Construction Manager
shall terminate this Agreement with respect to such Facility and the related
Facility Owner, and, from and after the effective date of such sale, CGC, the
applicable Facility Owner and Construction Manager will be released from all
future liabilities, and will no longer have any obligations, hereunder with
respect to such Facility. In such event, CGC, the applicable Facility Owner(s)
and Construction Manager shall amend this Agreement, including Appendix B
hereto, to delete such Facility and the related Facility Owner..

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      3.2 Services. Construction Manager shall perform or cause to be performed
on behalf of each Facility Owner the following management, administrative and
other support services in connection with the day-to-day business of such
Facility Owner relating to the design, engineering, procurement, construction,
start-up and testing of such Facility Owner's Facility (collectively, the
"Services"). All Services shall be performed in a manner consistent with the
Construction Management Budget for the Facility.

            3.2.1 General Management and Administration Construction Manager
shall be fully responsible for the day-to-day management and administration of
all of each Facility Owner's business relating to the design, engineering,
procurement, construction, start-up and testing of such Facility Owner's
Facility through the Final Completion Date for such Facility, including, without
limiting the generality of the scope of Services described in this Section 3.2,
the specific responsibilities attached in the Services Description-set forth as
Exhibit A hereto and the coordination of work under the applicable Construction
Agreements, but excluding (a) any responsibilities of the Facility Owner set
forth in Article 4 hereof and (b) any responsibilities of the Operator under the
Operating and Maintenance Agreement.

            3.2.2 Construction Parties and Construction Agreements. Subject to
Section 3.8, Construction Manager shall represent each Facility Owner in all
matters involving the Construction Parties related to the Facility Owner's
Facility, shall coordinate the activities of the applicable Construction Parties
under the applicable Construction Agreements and shall negotiate (subject to the
applicable Facility Owner's approval) any necessary amendments to or change
orders under such Construction Agreements and administer on behalf of the
applicable Facility Owner the performance of all of such Facility Owner's
obligations and responsibilities thereunder. Construction Manager shall manage
construction of each Facility in accordance with the requirements of the
Construction Agreements and Prudent Engineering Practices. Construction Manager
shall use all commercially reasonable efforts to achieve Completion of each
Facility by the Scheduled Completion Date for such Facility set forth on
Appendix B, but does not guarantee or warrant achieving Completion by that date.

            3.2.3 Performance Testing; Completion.

                  (a) Before mechanical completion has been achieved for a
Facility in accordance with the applicable Construction Contract, Construction
Manager shall review and cause performance testing for all subsystems in such
Facility and, as such subsystems are completed and turned over by the relevant
contractor for such subsystems, shall test such subsystems and accept or reject
them, as appropriate. Construction Manager shall also cause such Facility to be
started up in accordance with Prudent Engineering Practices.

                  (b) After mechanical completion has been achieved for a
Facility in accordance with the applicable Construction Contract, Construction
Manager shall start up such Facility in accordance with the requirements of the
applicable Construction Agreements and Prudent Engineering Practices and shall
cause performance testing of such Facility, with the objective of causing a
Successful Performance Test to occur on or prior to the applicable Performance
Test Target Date. Construction Manager shall, without limitation, cause
performance of each of the test procedures set forth in the applicable Major
Supply Agreements

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and such other procedures as may have been developed by Construction Manager in
the due course of project implementation.

                  (c) Each Facility Owner acknowledges that Construction Manager
is not providing any performance guarantees, nor guarantying completion of a
Successful Performance Test on or prior to the applicable Performance Test
Target Date. Construction Manager's sole obligation with respect to performance
testing of a Facility is to cause the applicable Performance Tests to be
conducted in accordance with the test procedures set forth in the applicable
Major Supply Agreements and such other procedures as may have been developed by
Construction Manager in the due course of project implementation, and to
otherwise comply with the provisions of this Section 3.2.3.

                  (d) When Construction Manager believes that a Successful
Performance Test has been completed for a Facility, it shall deliver to the
applicable Facility Owner a Notice of Completion. The Notice of Completion shall
contain a report in a form reasonably acceptable to such Facility Owner and with
sufficient detail to enable such Facility Owner to determine that all such
conditions to a Successful Performance Test have been satisfied.

                  (e) Each Facility Owner will use all reasonable efforts to
notify Construction Manager at the earliest possible date of any inadequacy,
inaccuracy or otherwise unacceptable information or results set forth in the
Notice of Completion given to such Facility Owner. In the event that a Facility
Owner believes that a Successful Performance Test has not been achieved,
Construction Manager shall promptly take such action as may be taken by such
Facility Owner under the applicable Construction Agreements as will enable
Construction Manager to demonstrate a Successful Performance Test for the
Facility in question and shall issue to such Facility Owner another Notice of
Completion. Such procedure shall be repeated as necessary until a Successful
Performance Test has been achieved for the Facility in question, in which case,
Completion of such Facility shall be deemed to have occurred on the date of such
Facility Owner's receipt of the most recently delivered Notice of Completion,
which shall be considered the "final" Notice of Completion.

                  (f) If, upon completion of each of the Performance Tests for a
Facility, it is not established that a Successful Performance Test has occurred,
Construction Manager shall, until the applicable Performance Test Target Date
(and thereafter, if directed by such Facility Owner), cause to be re-performed
(consistently with Prudent Engineering Practices), the Performance Tests for the
Facility in question in order to establish that a Successful Performance Test
has occurred. Notwithstanding the foregoing, if prior to the applicable
Performance Test Target Date, a Facility Owner, in consultation and agreement
with Construction Manager, determines (i) that the applicable Performance Tests
are not likely to be successfully completed or (ii) that it will accept such
Facility as complete at less than the level of the applicable Performance
Guarantees and/or that Completion shall be deemed to have occurred based on the
performance of such Performance Tests, such Facility Owner may require
Construction Manager to pursue on such Facility Owner's behalf, all remedies
available to such Facility Owner pursuant to the terms of the applicable Major
Supply Agreements.

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                  (g) After successful completion of the Performance Tests for a
Facility, Construction Manager shall cause Final Completion for such Facility to
occur as soon as reasonably practicable.

      3.3 Personnel. Construction Manager shall provide and make available as
necessary all professional, supervisory, managerial, administrative and other
personnel as are reasonably necessary to perform the Services, and shall
supervise the operation's personnel provided by a Facility Owner during start-up
and testing for such Facility Owner's Facility. Personnel provided by
Construction Manager shall be qualified and experienced in the duties to which
they are assigned. The working hours, rates of compensation and all other
matters relating to the employment of individuals employed by Construction
Manager or its Affiliates in the performance of the Services shall be determined
solely by Construction Manager or its respective Affiliates, but in a manner
consistent with industry standards and rates, and the Construction Management
Budget for the applicable Facility. Construction Manager also shall arrange, at
each Facility Owner's expense, for suitable office and other related facilities
and supplies at the applicable Facility site for all personnel working at such
Facility site.

      3.4 Authority of Construction Manager. Subject to Section 3.8 hereof,
Construction Manager is hereby granted, to the fullest extent permitted by law,
during the Term, the right, power and authority to do on behalf of each Facility
Owner in such Facility Owner's name all things which are necessary, proper or
desirable to carry out the duties and responsibilities of Construction Manager
under this Agreement with respect to such Facility Owner and its Facility,
including the right, power and authority to engage in any actions and to
execute, enter into, perform and carry out contracts and undertakings of any
kind whatsoever necessary or incidental to the accomplishment of the purposes
and objectives of such Facility Owner in connection with the design,
engineering, procurement, construction, start-up and testing of such Facility
Owner's Facility, so long as such activities, contracts and undertakings may be
lawfully carried out or performed by or on behalf of such Facility Owner, and
provided that in no event shall Construction Manager's authority hereunder be
greater than or extend beyond the authority of such Facility Owner, as such
authority may be limited by any covenant or other restriction contained in any
applicable Construction Agreement. Each Facility Owner agrees, from time to
time, to execute and deliver any additional written authorizations or powers of
attorney which may be reasonably requested by Construction Manager to permit it
to carry out the purpose and intent of this Section. Construction Manager
represents and warrants to each Facility Owner that it has reviewed each
Construction Agreement related to such Facility Owner's Facility and is familiar
with the obligations of such Facility Owner under each such agreement and shall
not take any actions that could reasonably be expected to cause such Facility
Owner to be in breach of such agreements.

      3.5 Right to Request Instruction. At any time, Construction Manager may,
if it reasonably deems it to be necessary or appropriate, request written
instructions from a Facility Owner, within a reasonable period prior to the
necessity for taking action, with respect to any matter contemplated by this
Agreement and may defer action thereon pending the receipt of such written
instructions. Actions taken by Construction Manager, its officers, employees and
representatives in accordance with the written instructions of a Facility Owner
shall be deemed to be proper conduct within the scope of Construction Manager's
authority under this Agreement.

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      3.6 Cooperation and Consultation. Each Facility Owner agrees that it shall
cooperate with Construction Manager in the performance of Construction Manager's
Services and, subject to the provisions of Article 4, shall not take any
independent or unilateral action with respect to the applicable Construction
Agreements or any other matter with respect to which Construction Manager has
authority under this Agreement, without first consulting Construction Manager.

      3.7 Construction Manager Representative. Construction Manager shall
appoint a project manager with respect to each Facility. In all matters
concerning or arising under this Agreement, Construction Manager shall be bound
by the written communications, directions, requests and decisions made by such
project manager. The appointment of such project manager hereunder shall remain
in full force and effect until a written notice of substitution or replacement
is delivered by Construction Manager to the applicable Facility Owner; provided
that any successor project manager shall be subject to approval by such Facility
Owner, which approval shall not be unreasonably withheld. Unless a Facility
Owner identifies its reasons for not approving any such successor in reasonable
detail in a written notice to the Construction Manager delivered within ten (10)
Days following Such Facility Owner's receipt of written notice of such
successor's nomination by Construction Manager, such successor shall be deemed
approved by such Facility Owner.

      3.8 Limitations on Authority. Notwithstanding any other provision hereof
to the contrary, Construction Manager shall not without the prior written
consent of the applicable Facility Owner (a) execute or otherwise approve any
amendments or modifications to any of the Construction Agreements related to
such Facility Owner's Facility, any other agreements related to the ownership,
construction or operation of such Facility, or any Governmental Approvals
related to such Facility, or (b) execute or otherwise approve any change orders
under any of the Construction Agreements related to such Facility.

ARTICLE 4. OWNER'S RESPONSIBILITIES

      4.1 General. Each Facility Owner shall furnish, or cause to be furnished,
to Construction Manager, at such Facility Owner's expense, such information,
documentation, services and materials, which are not required to be provided by
Construction Manager hereunder and which are reasonably requested by
Construction Manager to permit it to perform the Services and to otherwise
fulfill its obligations under this Agreement. All such items shall be made
available at such times and in such manner as may be required by Construction
Manager for the expeditious and orderly performance of the Services.

      4.2 Construction Costs. Each Facility Owner shall be responsible for
payment of all amounts payable to the Construction Manager under this Agreement
and to each of the Construction Parties under the Construction Agreements
related to such Facility Owner's Facility.

      4.3 Owner Representative. Within ten (10) Days after the execution date of
this Agreement (or, in the case of Facilities and Facility Owner's added after
the Effective Date, within ten (10) Days after being added to this Agreement),
each Facility Owner shall appoint an Owner Representative. In all matters
concerning or arising under this Agreement, each Facility Owner shall be bound
by the written communications, directions, requests and decisions made

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by its Owner Representative. Each Facility Owner shall notify Construction
Manager in writing of such representative, and such appointment shall remain in
full force and effect until a written notice of substitution or replacement is
delivered by such Facility Owner to Construction Manager.

      4.4 Site Surveys; Access. Each Facility Owner shall furnish all necessary
surveys of the applicable Facility site, including a description of the physical
characteristics of such Facility site, soil reports and subsurface
investigations of such Facility site, a description of utility locations on and
adjacent to such Facility site, and a legal description of such Facility site.
Each Facility Owner shall also provide Construction Manager all access to the
applicable Facility site that the Construction Manager considers necessary to
perform its Services hereunder.

      4.5 Permits, Easements, etc. Each Facility Owner shall secure and pay for
necessary permits, licenses, approvals, easements, and charges required for the
construction, use or occupancy of permanent structures or for permanent changes
in existing facilities in connection with such Facility Owner's Facility.

      4.6 Professional Services. Each Facility Owner shall furnish such legal
services as may be necessary for providing the items set forth in this Article 4
related to such Facility Owner's Facility and such auditing services as such
Facility Owner may require.

      4.7 Prompt Provision. The services, information, surveys and reports to be
furnished by each Facility Owner shall be furnished with reasonable promptness
at such Facility Owner's expense, and Construction Manager shall be entitled to
rely upon the accuracy and completeness thereof.

      4.8 Hazardous Substances. Each Facility Owner shall, in consultation with
Construction Manager and with Construction Manager's assistance as reasonably
requested, prepare a Hazardous Substances Plan for such Facility Owner's
Facility, and update such plan from time to time as appropriate. Construction
Manager shall, at such Facility Owner's cost, observe the provisions of the
Hazardous Substance Plan applicable to Construction Manager.

      4.9 Taxes. Each Facility Owner shall pay, as and when due, all property,
ad valorem, business and other taxes assessed or levied on or with respect to
such Facility Owner's Facility by any federal, state or local governmental
agency.

ARTICLE 5. CONSTRUCTION MANAGER'S COMPENSATION

      5.1 Generally. As compensation in full to Construction Manager for
performance of its Services hereunder, each Facility Owner shall pay to
Construction Manager the sum of the following (hereinafter collectively referred
to as the "Construction Manager's Compensation") with respect to such Facility
Owner's Facility:

            5.1.1 Project Personnel Cost Reimbursement. An amount equal to the
sum of all direct wages and salaries (including overtime) which the Construction
Manager actually pays to Project Personnel employed or retained solely to
provide Services relating to such Facility Owner's Facility.

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            5.1.2 Additional Reimbursement. Without duplication of the amounts
described in Section 5.1.1, an amount equal to the sum of all amounts actually
paid by Construction Manager for any items provided for in the Construction
Management Budget with respect to such Facility Owner's Facility.

            5.1.3 Third Party Costs. Without duplication of the amounts
described in Sections 5.1.1 and 5.1.2, an amount equal to the sum of all third
party costs incurred by Construction Manager in the performance of the Services
with respect to such Facility Owner's Facility.

      5.2 Budget. The Construction Management Budget for each Facility shall
constitute the control document pursuant to which Construction Manager shall
incur expenses with respect to such Facility hereunder. If at any time during
the Term, the Construction Manager anticipates a Construction Management Budget
overrun in the aggregate of fifteen percent (15%) or greater in any expense
category set out in the then current Construction Management Budget with respect
to a Facility, Construction Manager shall so notify the applicable Facility
Owner in writing and shall prepare a proposed variance from the applicable
Construction Management Budget incorporating such change. Except in the case of
an Emergency, no expense shall be incurred by Construction Manager which will
cause any expense category in the Construction Management Budget with respect to
a Facility to be exceeded by more than fifteen percent (15%), unless Facility
Owner that owns such Facility has approved such variance in writing.

      5.3 Payment. Within ten (10) Days after the last Day of each month after
the Effective Date during the Term, Construction Manager shall send each
Facility Owner an invoice setting forth in reasonable detail the amount of
Construction Manager's Compensation for such preceding month with respect to
such Facility Owner's Facility, accompanied by such supporting documentation and
additional data as such Facility Owner may reasonably request. Such amounts
shall be due and payable by each Facility Owner within thirty (30) Days of
Construction Manager's submission of each invoice therefor. Construction Manager
shall be paid any amounts included in the applicable Construction Management
Budget for Services rendered by it or for Project Personnel costs or other costs
incurred by it prior to the Effective Date with respect to a Facility within
thirty (30) Days after the Effective Date. Unless otherwise agreed by a Facility
Owner, Construction Manager shall provide such Facility Owner with a partial
release or waiver of lien in conjunction with each payment of Construction
Manager's Compensation.

      5.4 Interest. After the Effective Date, all payments due Construction
Manager hereunder but unpaid shall bear interest at the lower of (a) the "prime
rate" as published from time to time in the Wall Street Journal, plus two
percent (2%), or (b) the highest rate permitted under applicable law.

      5.5 Accounting and Auditing. Construction Manager shall keep accurate and
complete accounting records in support of all cost billings to each Facility
Owner, in accordance with generally recognized accounting principles and
practices consistently applied. Each Facility Owner and its audit
representatives shall have the right at any reasonable time or times to examine,
audit, and reproduce the records, vouchers, and other source documents which
serve as the basis for Construction Manager's Compensation with respect to such
Facility Owner's Facility. Such documents shall be available for examination,
audit, and reproduction by a

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Facility Owner and its representatives for three (3) years after the Final
Completion Date for the applicable Facility.

      5.6 No Fees. In no event will Construction Manager receive any fee or
additional compensation (other than Construction Manager's Compensation) for the
Services.

ARTICLE 6. INDEMNIFICATION AND LIMITATIONS ON LIABILITY

      6.1 Indemnification By Construction Manager. Subject to Sections 6.4 and
6.5, Construction Manager shall indemnify, defend and hold each Facility Owner,
CGC and their respective Indemnitees harmless from and against any and all
claims, actions damages, expenses (including reasonable attorneys' fees), losses
or liabilities incurred by or asserted against such Facility Owner, CGC and
their respective Indemnitees for injury (including death) to persons or damage
or destruction to property and any and all fees or penalties incurred by such
Facility Owner, CGC or their respective Indemnitees, including damages arising
from environmental contaminants, to the extent that such claims, actions,
damages, expenses, losses or liabilities, including damages arising from
environmental contaminants, are caused by the negligence, fraud or willful
misconduct of Construction Manager or its Affiliates (other than the Facility
Owner), employees, partners, agents, officers or directors.

      6.2 Indemnification by Facility Owner. Each Facility Owner shall
indemnify, defend and hold Construction Manager and its Indemnitees harmless
from and against any and all claims, actions, damages, expenses (including
reasonable attorneys' fees), losses or liabilities incurred by or asserted
against Construction Manager or its Indemnitees to the extent that such claims,
actions, damages, expenses, losses or liabilities are caused by the negligence,
fraud or willful misconduct of such Facility Owner or its Affiliates (other than
Construction Manager and Operator), employees, partners, agents, officers or
directors.

      6.3 Environmental Indemnity. Notwithstanding Section 6.1, each Facility
Owner hereby waives any claim for liability against and agrees to defend,
indemnify and hold Construction Manager and its Indemnitees harmless from and
against any and all claims, actions, damages, fines, penalties, expenses
(including those actions asserted by any governmental or regulatory body)
incurred by or asserted against Construction Manager or its Indemnitees that
arise out of or result from (a) any environmental contamination of such Facility
Owner's Facility site or the property of any third party, or the failure of any
Hazardous Substance Handling to be carried out in accordance with applicable
laws or regulations, whether arising before or after the Effective Date, or (b)
to the extent a Facility Owner has obtained insurance coverage with respect to
any matter giving rise to a claim, except, as to any such contamination or
failure occurring after the Effective Date, to the extent that such claims,
actions damages, fines, penalties or expenses arise directly from Construction
Manager's negligence or willful misconduct.

      6.4 Limitation of Liability. Notwithstanding any provision in this
Agreement to the contrary, except as set forth below in this Section 6.4, no
party to this Agreement nor its Indemnitees shall be liable hereunder for
consequential or indirect loss or damage, including loss of Project Revenues,
cost of capital, loss of goodwill, increased operating costs, or any other
special or incidental damages; provided, however, that the foregoing limitation
shall not apply to

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damages resulting from a party's willful misconduct; provided, further, that
nothing in this sentence shall limit the obligations of a Facility Owner and
Construction Manager under Sections 6.1, 6.2 and 6.3 to indemnify the other
party with respect to claims by third parties otherwise covered by the
provisions of Sections 6.1, 6.2 and 6.3. Except for damages resulting from
Construction Manager's willful misconduct, Construction Manager's maximum
cumulative liability under this Agreement with respect to a given Facility shall
be limited to $250,000 per calendar year (prorated for partial calendar years if
this Agreement terminates with respect to a given Facility on a date other than
December 31) plus the proceeds available from, and actually collected under, any
policy of insurance then in force with respect to the Services, the insurer of
which waives subrogation against Construction Manager (which proceeds shall be
applied directly to satisfy Construction Manager's liability under this
Agreement); provided, however, that the foregoing limitation of liability shall
not apply to damages resulting from Construction Manager's fraud or willful
misconduct. The parties further agree that the waivers and disclaimers of
liability, indemnities, releases from liability, and limitations on liability
expressed in this Agreement (including in Sections 6.4 and 6.5) shall survive
termination or expiration of this Agreement, and shall apply (unless otherwise
expressly indicated), whether in contract, equity, tort or otherwise, even in
the event of the fault, negligence, including sole negligence, strict liability,
or breach of warranty of the parry indemnified, released or whose liabilities
are limited, and shall extend to the partners, principals, directors, officers
and employees, agents and related or affiliated entities of such party, and
their partners, principals, directors, officers and employees.

      6.5 Limitations on Recourse. The obligations of the parties under this
Agreement are obligations of the parties only, and no recourse shall be
available against any officer, director, employee, stockholder or partner of a
party or its Affiliates. In addition, recourse against each Facility Owner and
CGC is limited to such Facility Owner's interest in the Facility or CGC's
interest in each of the Facilities, as applicable, including all tangible and
intangible assets comprising the Facility, the revenue and income produced by
the Facility and the proceeds of any of the foregoing.

      6.6 No Warranties or Guarantees. EXCEPT AS EXPRESSLY SET FORTH HEREIN,
CONSTRUCTION MANAGER MAKES NO WARRANTY OR GUARANTY TO CGC, ANY FACILITY OWNER OR
ANY OTHER PERSON OR ENTITY, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THE
PROJECT, THE SERVICES, OR THE SUBJECT MATTER OF THIS AGREEMENT, AND CONSTRUCTION
MANAGER EXPRESSLY DISCLAIMS, AND CGC AND EACH FACILITY OWNER EXPRESSLY WAIVE,
ANY AND ALL WARRANTIES IMPLIED BY LAW.

ARTICLE 7. TERM AND TERMINATION

      7.1 Term. This Agreement shall become effective on the Effective Date and,
if not earlier terminated pursuant to this Article 7, shall expire upon the
Final Completion Date (the "Term").

      7.2 Termination.

                                       10

<PAGE>

            7.2.1 Either party hereto may terminate this Agreement with respect
to some or all of the Facilities for cause upon thirty (30) Days' prior written
notice to the other party in the event of a Bankruptcy Event affecting such
other party.

            7.2.2 Each Facility Owner may terminate this Agreement with respect
to such Facility Owner's Facility upon thirty (30) Days' prior written notice to
Construction Manager in the event that (a) Construction Manager (i) fails to
perform its material obligations hereunder in accordance with the requirements
of this Agreement with respect to such Facility and (ii) does not cure such
failure within thirty (30) Days of the date of a notice from such Facility Owner
demanding such cure (or within such longer period of time as is reasonably
necessary to accomplish such cure, but not to exceed ninety (90) Days in the
aggregate, if cure cannot be reasonably accomplished within such thirty (30) Day
period and Construction Manager diligently commences and continues such cure in
such period) or (b) Construction Manager is unable to substantially perform the
Services in a material respect because of the happening of an event of Force
Majeure with respect to such Facility which event would not similarly affect
another construction manager having qualifications and availability to perform
the Services similar to those of Construction Manager or (c)in the event of a
Bankruptcy Event of Construction Manager's guarantor or (d) Construction
Manager's guarantor disaffirms, disclaims, or rejects, in whole or in part, or
challenges the validity of, the guaranty.

            7.2.3 Construction Manager may terminate this Agreement upon thirty
(30) Days' prior written notice to the applicable Facility Owner in the event
that (i) such Facility Owner fails to make any payments, as and when due in each
case, under this Agreement or under any insurance policy relating to such
Facility Owner's Facility or to any taxing authority having jurisdiction over
such Facility or such Facility Owner in respect of this Agreement, or (ii) the
breach by such Facility Owner of any of its obligations under this agreement
would cause Construction Manager, as it may determine in its reasonable
discretion, to violate applicable Laws or subject it to unreasonable liability.

            7.2.4 Notwithstanding any provision herein to the contrary, no
failure of Construction Manager to do any act or perform any Services that
results from lack of budget authority or other required approval by a Facility
Owner shall be deemed a breach of this Agreement with respect to such Facility
Owner and such Facility Owner's Facility.

      7.3 Termination for Convenience.

            7.3.1 Each Facility Owner shall have, at any time during the Term,
the right to terminate this Agreement with respect to such Facility Owner's
Facility, without cause, upon thirty (30) Days' notice to Construction Manager.

            7.3.2 If a Facility Owner elects to terminate this Agreement with
respect to such Facility Owner's Facility pursuant to this Section 7.3, the
parties shall confer and set forth a description of the activities required in
order to terminate in an orderly manner, including matters addressed in Section
7.4. In event of any termination pursuant to this Section 7.3, a Facility Owner
shall have the right to request that Construction Manager continue to maintain
or assist in training a replacement Construction Manager and to perform such
other transition work with respect to such Facility Owner's Facility as Facility
Owner may reasonably request, and

                                       11

<PAGE>

Construction Manager shall comply with any such request for a period not to
exceed six (6) months. In the event of any such request, such Facility Owner
shall pay to Construction Manager the Construction Manager's compensation set
forth in Section 5.1.1 hereof, prorated over the transition period described in
this Section 7.3, and any amounts due under Sections 5.1.2 and 5.1.3 hereof.
Upon any such termination, such Facility Owner shall pay to Construction
Manager, in addition to the amounts described in the preceding sentence, and
otherwise, in full satisfaction and discharge of all liabilities and obligations
owed to Construction Manager with respect to this Agreement related to such
Facility Owner's Facility, the amounts specified in Section 7.5.

      7.4 Rights Upon Termination. Upon any expiration or termination of this
Agreement with respect to a Facility, Construction Manager shall deliver to the
applicable Facility Owner at such Facility Owner's principal place of business
all records, documents, accounts, files and other materials of such Facility
Owner or pertaining to such Facility Owner's business as Facility Owner may
reasonably request. Such Facility Owner shall assume and become liable for any
contracts or obligations that Construction Manager may have undertaken with
third parties in connection with the Services as permitted in this Agreement
with respect to such Facility Owner's Facility, and Construction Manager shall
execute all documents and take all other reasonable steps requested by such
Facility Owner which may be required to assign to and vest in Facility Owner all
rights, benefits, interests and titles in connection with such contracts or
obligations with respect to such Facility Owner's Facility. Expiration or
termination of this Agreement shall not relieve any party hereto of liability
which has accrued or arisen prior to the date of such expiration or termination.

      7.5 Termination Payment. In the event of a termination of this Agreement
with respect to a Facility by Construction Manager pursuant to Section 7.2. or
by a Facility Owner pursuant to Section 7.3, Construction Manager shall be
entitled, in addition to all other amounts due hereunder (including under
Section 5.1 hereof) as of the date of termination and regardless the reason for
termination, to a termination payment from such Facility Owner equal to all
costs and expenses reasonably incurred by Construction Manager as a direct
result of such termination, including (a) all relocation and severance costs
incurred with respect to Construction Manager's employees related to such
Facility Owner's Facility that Construction Manager is contractually or legally
obligated to pay to such employees (other than pursuant to any "golden
parachute" or other like provisions contained in such contracts) or that are
incurred with the prior written consent of such Facility Owner in accordance
with established personnel policies of Construction Manager, and (b) the cost
reasonably incurred by Construction Manager in withdrawing from the applicable
Facility and otherwise demobilizing its operations with respect to such
Facility. Such amounts shall be due and payable by such Facility Owner or a new
owner of such Facility, as applicable, within thirty (30) Days after
Construction Manager's submission of an invoice therefor.

      7.6 Suspension. In addition to the termination rights set forth in this
Article 7, in the event a Facility Owner fails (a) to pay amounts due to
Construction Manager hereunder as and when due, (b) to pay any taxes on the
applicable Facility as and when due, (c) to maintain the insurance required to
be maintained by such Facility Owner hereunder or (d) to perform any of its
other obligations hereunder with respect to such Facility Owner's Facility such
that continued performance by Construction Manager hereunder is impractical,
would violate applicable Laws

                                       12

<PAGE>

or would subject Construction Manager to unreasonable liability, Construction
Manager shall have the right to suspend the performance of Services hereunder
with respect to such Facility Owner's Facility until such failure has been
remedied.

ARTICLE 8. FORCE MAJEURE

      8.1 Excuse for Force Majeure. Subject to Section 7.2.2(b), a delay in or
failure of performance hereunder by either party shall be excused to the extent
caused by Force Majeure, with the exception of payment obligations. The
foregoing provisions allowing a party to claim excuse due to Force Majeure shall
not relieve such party from using its reasonable efforts to overcome or remove
such Force Majeure. A party claiming such failure or delay shall give prompt
notice thereof to the other party, together with a description of such efforts
to overcome the Force Majeure.

      8.2 Legal Changes. In the event a party is unable to perform due to
legislative, judicial, or regulatory agency action, this Agreement shall be
amended as appropriate to comply with the legal change which caused the
non-performance.

ARTICLE 9. INSURANCE

      9.1 Owner's Insurance. Beginning on the Effective Date and continuing for
the Term of this Agreement, each Facility Owner shall procure and maintain in
full force and effect, at such Facility Owner's cost, builder's risk all risk
property and delay in start up insurance with respect to such Facility Owner's
Facility in an amount equal to the replacement cost of such Facility, including
boiler and machinery coverage with deductibles and sublimits as appropriate. In
addition, Construction Manager shall be an additional insured with respect to
any liability insurance obtained by or for the benefit of a Facility Owner with
respect to such Facility Owner's Facility, and such Facility Owner shall require
all such insurers to waive subrogation against Construction Manager.

      9.2 Construction Manager's Insurance. From and after the Effective Date,
Construction Manager shall procure and maintain in full force and effect the
following insurance coverage with respect to each Facility:

            (a) Worker's Compensation insurance with statutory limits, and
employers liability insurance with limits of not less than $2,000,000 in the
aggregate. Construction Manager shall require its insurers to waive all rights
of subrogation against CGC, the applicable Facility Owner, and their respective
officers, directors, agents and employees.

            (b) Business automobile liability insurance covering owned,
non-owned and hired automobiles for a combined single limit of $1,000,000 each
occurrence. This policy shall be primary as to other insurance which may be
available to CGC, the applicable Facility Owner or its constituent members or
partners and shall name CGC and such Facility Owner as additional insureds to
the extent of the indemnity obligations assumed hereunder.

            (c) Commercial general liability insurance, including bodily injury,
property damage, products/completed operations, blanket contractual, and
personal injury liability, with a combined single limit of $1,000,000 each
occurrence, all of which shall be endorsed to name

                                       13

<PAGE>

CGC and the applicable Facility Owner as additional insureds to the extent of
the indemnity obligations assumed hereunder.

            (d) Umbrella liability providing excess general liability,
automobile liability and employment liability with a combined single limit of
$25,000,000, which shall be endorsed to name CGC and the applicable Facility
Owner as additional insureds to the extent of the indemnity obligations assumed
hereunder.

      9.3 Evidence of Insurance. Each party shall provide to the other
certificates of insurance evidencing the required insurance as the requesting
party may reasonably specify.

      9.4 Endorsements. Each of me required policies shall be endorsed to
provide that the other party requiring the insurance hereunder be given thirty
(30) Days advance notice of cancellation or material change.

      9.5 Coverage under Owner's Policies. Each Facility Owner, at its option,
may add Construction Manager as a named insured to such Facility Owner's
liability policies in order to fulfill Construction Manager's obligations
hereunder.

ARTICLE 10. MISCELLANEOUS

      10.1 Assignment. None of the Facility Owners or Construction Manager may
assign this Agreement, nor may Construction Manager delegate to another the
performance of the Services, without the prior written consent of the other
applicable party; provided, however that a Facility Owner shall have the
unconditional right, by security, charge or otherwise, to encumber its interest
under this Agreement, and may also assign its rights to any financially
qualified party, subject, in the latter case to Construction Manager's approval,
which approval shall not be unreasonably withheld or delayed. Construction
Manager shall execute a consent to assignment and such other documents in
connection with any assignment to such secured party or financially qualified
party, as the case may be, as such party may reasonably request.

      10.2 Governing Law; Forum. This Agreement shall be governed by the law of
the State of California. Actions to enforce or interpret this Agreement or to
resolve disputes hereunder shall be brought in the United States District Court
in San Jose, California, or, if such court does not have jurisdiction over such
action, in the Superior Court of the State of California in San Jose,
California, which courts shall have exclusive jurisdiction with respect to such
matters. For purposes of the foregoing, each Facility Owner and Construction
Manager hereby submit and agree to the jurisdiction of such courts.

      10.3 Entire Agreement; Amendments. This Agreement constitutes the entire
agreement among CGC, the Facility Owners and Construction Manager with respect
to the matters covered hereby and supersedes all prior negotiations,
representations, agreements or understandings relating thereto. This Agreement
may be amended with respect to a particular Facility only by a writing signed by
a duly authorized representative of CGC (if CGC's rights and obligations are
affected), the applicable Facility Owner and Construction Manager.

                                       14

<PAGE>

      10.4 Survival. Notwithstanding any provisions herein to the contrary, the
provisions set forth in Articles 6 and 7 shall survive in full force the
expiration or termination of this Agreement.

      10.5 Waivers. Either party may specifically waive any breach of this
Agreement by any other party, but no such waiver shall be deemed to have been
given unless such waiver is in writing, signed by the waiving party and
specifically designates the breach waived, nor shall any such waiver constitute
a continuing waiver of similar or other breaches.

      10.6 Notices. Any written notice, direction, instruction, request or other
communication required or permitted under this Agreement shall be deemed to have
been duly given on the date of receipt, and shall be either served personally or
by facsimile to the party to whom notices is to be given, or mailed to the party
to whom notices is to be given, by first class registered or certified mail,
return receipt requested, postage prepaid, and addressed to the addressee at the
address stated opposite its name below, or at the most recent address specified
by written notice given to the other party in the manner provided in this
Section 10.6.

CGC:                    Calpine Generating Company, LLC
                        c/o Calpine Corporation
                        50 West San Fernando Street
                        San Jose, CA 95113
                        Attention: General Counsel
                        Telephone: (408)995-5115
                        Facsimile: (408)975-4648

FACILITY OWNER:         At the address set forth on Appendix B

With a copy to:         Calpine Corporation
                        50 West San Fernando Street
                        San Jose, CA 95113
                        Attention: General Counsel
                        Telephone: (408)995-5115
                        Facsimile: (408)975-4648

CONSTRUCTION MANAGER:   Calpine Construction Management Company, Inc.
                        104 Woodmere Avenue
                        Folsom, CA 95630
                        Attention: Asset Optimization and Regional Counsel
                        Telephone: (916)608-3800
                        Facsimile: (916)985-5655

      10.7 Partial Invalidity. If any term, provision, covenant, or condition of
this Agreement is held by a court of competent jurisdiction to be invalid, void,
or unenforceable, the rest of this Agreement shall remain in full force and
effect and in no way be affected, impaired, or invalidated.

                                       15

<PAGE>

      10.8 Not for Benefit of Third Parties. Except with respect to any person
in whose favor an interest in this Agreement may be created pursuant to Section
10.1, this Agreement and each and every provision thereof is for the exclusive
benefit of CGC, the Facility Owners and Contraction Manager and is not for the
benefit of any third party.

      10.9 Headings. The headings herein in this Agreement are for reference
only and shall not affect the construction of this Agreement.

      10.10 Counterparts. This Agreement may be executed in counterparts, and
any number of counterparts signed in the aggregate by the parties hereto shall
constitute a single original document.

                     [The next page is the signature page.]

                                       16

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Construction
Management Agreement to be executed by their officers or partners thereunto duly
authorized as of the day and year first written above.

CALPINE CONSTRUCTION                       CALPINE GENERATING COMPANY, LLC
MANAGEMENT COMPANY, INC.

By: /s/ Rodney Malcolm                     By: /s/ Zamir Rauf
    ---------------------------------          ---------------------------------
Name:  RODNEY MALCOLM                      Name:  ZAMIR RAUF
Title: Authorized Signatory                Title: Vice President

COLUMBIA ENERGY, LLC                       GOLDENDALE ENERGY CENTER, LLC

By: /s/ Zamir Rauf                         By: /s/ Zamir Rauf
    ---------------------------------          ---------------------------------
Name:  ZAMIR RAUF                          Name:  ZAMIR RAUF
Title: Vice President                      Title: Vice President

PASTORIA ENERGY FACILITY, L.L.C.

By: /s/ Zamir Rauf
    ---------------------------------
Name:  ZAMIR RAUF
Title: Vice President

                                       17

<PAGE>

                                   APPENDIX A

                                  DEFINITIONS

      "Affiliate" means with respect to any Person, any other Person that
directly or indirectly controls, is controlled by, or is under common control
with such Person. For purposes of the foregoing definition, "control" means (i)
the direct or indirect ownership of fifty percent (50%) or more of the
outstanding capital stock or other securities or equity interests having
ordinary voting power to elect the board of directors, managing general partner
or similar managing authority or (ii) the power to direct the management of such
Person.

      "Bankruptcy Event" shall be deemed to occur, with respect to any Person,
if that Person shall institute a voluntary case seeking liquidation or
reorganization under the Bankruptcy Law, or shall consent to the institution of
an involuntary case thereunder against it; or such Person shall file a petition
or consent or shall otherwise institute any similar proceeding under any other
applicable Federal or state law, or shall consent thereto; or such person shall
apply for, or by consent or acquiescence there shall be an appointment of, a
receiver, liquidator, sequestrate, trustee or other officer with similar powers
for such Person, or any substantial part of its assets; or such Person shall
make an assignment for the benefit of its creditors; or such Person shall admit
in writing its inability to pay its debts generally as they become due; or if an
involuntary case shall be commenced seeking liquidation or reorganization of
such Person under the Bankruptcy Law or any similar proceedings shall be
commenced against such Person under any other applicable Federal or state law
and (i) the petition commencing the involuntary case is not timely controverted,
(ii) the petition commencing the involuntary case is not dismissed within sixty
(60) Days of its filing, (iii) an interim trustee is appointed to take
possession of all or a portion of the property, and/or to operate all or any
part of the business of such Person and such appointment is not vacated within
sixty (60) Days, or (iv) an order for relief shall have been issued or entered
therein; or a decree or order of a court having jurisdiction in the premises for
the appointment of a receiver, liquidator, sequestrator, trustee or other
officer having similar powers, of such Person or all or a part of its property
shall have been entered; or any other similar relief shall be granted against
such Person under any applicable Federal or state law.

      "CGC" means Calpine Generating Company, LLC, a Delaware limited liability
company.

      "Completion" means, with respect to a Facility, that all Performance Tests
have been successfully completed as required under the Major Supply Agreements
related to such Facility and either all applicable Performance Guarantees have
been satisfied by Successful Performance Tests or, if Successful Performance
Tests have not been achieved, the counterparty to the applicable Major Supply
Agreement has paid liquidated damages for shortfalls in performance as required
thereunder and all other work to be performed under the applicable Major Supply
Agreements has been performed in accordance with the requirements thereof and
such other procedures as may have been developed by Construction Manager in the
due course of project implementation, as evidenced by delivery of a final Notice
of Completion from Construction Manager.

      "Completion Date" means, with respect to a Facility, the date on which
Completion of such Facility occurs.

                                       A-1

<PAGE>

      "Construction Agreements" means, with respect to a Facility, the Major
Supply Agreements and the Engineering Contract related to such Facility.

      "Construction Contract" means, for each Facility, the Construction
Contract specified on Appendix B. The Construction Contract generally provides
for the design and construction of the Facility other than the work provided for
in the other Major Supply Agreements related to such Facility.

      "Construction Management Budget" means, with respect to a Facility, the
budget attached hereto as Exhibit B related to such Facility, as such may be
amended from time to time under the terms of this Agreement.

      "Construction Manager Representative" means the individual representative
for a Facility appointed by Construction Manager and authorized and empowered to
act for and on behalf of Construction Manager on all matters concerning or
arising under the Construction Management Agreement.

      "Construction Parties" means, with respect to a Facility, the Engineer for
such Facility, the parties to the Major Supply Agreements (other than Facility
Owner) for such Facility and any sub-contractors of any of the foregoing.

      "Contractor" means, for each Facility, the Contractor specified for such
Facility on Appendix B.

      "Day" means a calendar day.

      "Effective Date" shall have the meaning given in the preamble to this
Agreement.

      "Emergency" means an event occurring at a Facility which poses actual or
imminent risk of serious personal injury, physical damage or environmental
contamination requiring immediate preventative or remedial action by
Construction Manager and for which advance approval by the applicable Facility
Owner otherwise required under the Construction Management Agreement would be
impossible or impractical.

      "Engineer" means, for each Facility, the Engineer specified for such
Facility on Appendix B.

      "Engineering Contract" means, for each Facility, the Engineering Contract
specified on Appendix B.

      "Facility" means each Facility described on Appendix B.

      "Facility Owner" has the meaning given in the preamble to this Agreement.

      "Final Completion" means, with respect to a Facility, that Completion of
such Facility has been achieved and all work under all of the applicable
Construction Contracts, including the

                                       A-2

<PAGE>

completion of all punch-list items and post mechanical completion services by
the Contractor under such Construction Contract has been completed.

      "Final Completion Date" means, with respect to a Facility, the date upon
which Final Completion of such Facility occurs.

      "Force Majeure" means acts, events, occurrences and conditions beyond the
reasonable control of the party claiming Force Majeure including acts of God,
labor disputes (other than those affecting Construction Manager unless such
labor disputes are of a general nature or affect the entire industry), sudden
actions of the elements, the effect of changes in applicable laws or
regulations, actions by federal, state, or municipal agencies, actions of
legislative, judicial, or regulatory agencies or denial, lapse or revocation of
any permit, license or regulatory approval necessary in connection with the
operation of a Facility.

      "Governmental Approval" means any permit, approval, license, right,
franchise, order, authorization, waiver, exemption, variance or consent issued
or given by any government, political subdivision, agency, authority, board,
commission, bureau, court, tribunal or other governmental or judicial entity
related to the ownership, construction or operation of a Facility.

      "Hazardous Substance Handling" means the management, handling, labeling,
containing, treatment, storage and removal of any hazardous waste or toxic
materials at the Facility site, in accordance with applicable laws and
regulations.

      "Hazardous Substance Plan" means, with respect to a Facility, a plan for
Hazardous Substance Handling for such Facility.

      "Indemnitees" of a party means each of its Affiliates and permitted
assignees, and each of the officers, directors, employees, agents, partners and
shareholders of the party and its Affiliates and permitted assignees.

      "Laws" means all laws, statutes, rules, regulations, orders and ordinances
or specified standards or objective criteria contained in any applicable
license, permit or approval, or other legislative or administrative act, of the
United States of America or any state, agency, department, authority, political
subdivision or other instrumentality thereof, or a decree, judgment or order of
a court from time to time in effect, including those governing wages, hours,
employment discrimination and safety, laws regarding workers' compensation,
disability laws and employee benefit laws and including any applicable
engineering, construction, safety or electrical generation code.

      "Major Supply Agreements" means, with respect to a Facility, the Power
Island Supply Contracts and Construction Contract related to such Facility.

      "Notice of Completion" means, with respect to a Facility, the notice
delivered by the Construction Manager to the applicable Facility Owner following
a Successful Performance Test at such Facility Owner's Facility.

                                      A-3

<PAGE>

      "Operating and Maintenance Agreement" means that certain Master Operation
and Maintenance Agreement dated as of March 23, 2004 among CGC, the Facility
Owners, certain other subsidiaries of CGC, and Calpine Operating Services
Company, Inc.

      "Operator" means Calpine Operating Services Company, Inc. as operator
under the Operating and Maintenance Agreement.

      "Owner Representative" means, with respect to a Facility, the individual
representative for such Facility appointed by the applicable Facility Owner and
authorized and empowered to act for and on behalf of such Facility Owner on all
matters concerning or arising under the Construction Management Agreement.

      "Performance Guarantees" means, with respect to a Facility, collectively
(a) the "performance guarantees" and similar terms as defined in each of the
Major Supply Agreements related to such Facility, and (b) any additional
guarantees provided by the Contractor in the Construction Contract related to
such Facility.

      "Performance Tests" means, with respect to a Facility, collectively (a)
"performance tests," "performance testing" and similar terms as defined in each
of the Major Supply Agreements related to such Facility, (b) "acceptance tests"
as defined in the Construction Contract related to such Facility, and (c) test
procedures developed by the Construction Manager in the due course of project
implementation, which shall include the use of a certifiable continuous
emissions monitoring system or a qualified independent third party environmental
testing firm to monitor emissions during such tests or testing.

      "Performance Test Target Date" means, with respect to a Facility, the date
on which a Successful Performance Test for such Facility is scheduled to occur
under the terms of the Construction Contract for the Facility related to such
Facility.

      "Person" means any natural person, corporation, partnership, limited
liability company, firm or other entity.

      "Power Island Supplier" means, with respect to a Facility, each party that
has entered into a Power Island Supply Contract with respect to such Facility.

      "Power Island Supply Contracts" means, for each Facility, the Power Island
Supply Contracts specified on Appendix B.

      "Project Personnel" means the permanent or temporary employees or
representatives of, Construction Manager or employed or retained at a Facility
solely to provide Services relating to the Facility.

      "Project Revenues" means for any month or other reference period, gross
revenues received during each month or other period from all sales of steam,
electric energy and capacity generated by a Facility.

                                      A-4

<PAGE>

      "Prudent Engineering Practices" means those practices, methods, equipment,
specifications and standards of safety and performance, as the same may change
from time to time, as are commonly used by independent operators of electric
generation stations of a type and size similar to those constituting the
Facility as good, safe and prudent engineering practices in connection with the
operation, maintenance, repair and use of gas turbines, steam turbines,
electrical generators and other equipment and facilities with commensurate
standards of safety, performance, dependability, efficiency and economy. Prudent
Engineering Practices are not intended to be limited to the optimum practice or
method to the exclusion of others, but rather to be a spectrum of possible but
reasonable practices and methods.

      "Scheduled Completion Date" means, for each Facility, the Scheduled
Completion Date specified on Appendix B.

      "Secured Obligations" means the "Secured Obligations" as defined in that
certain Security Agreement dated as of March 23, 2004 by and between CGC, the
Facility Owners, as guarantors, and Wilmington Trust Company, as collateral
trustee.

      "Services" shall have the meaning given such term in Section 3.2 of this
Agreement.

      "Successful Performance Test" means, with respect to a Facility, that the
Performance Tests for such Facility have been completed and the Performance
Guarantees provided under the Major Supply Agreements related to such Facility
have been met in accordance with the terms of each such agreement.

      "Term" has the meaning given in Section 7.1 of this Agreement.

                                       A-5

<PAGE>

                                   APPENDIX B

                              FACILITY DESCRIPTIONS

                   (MASTER CONSTRUCTION MANAGEMENT AGREEMENT)

COLUMBIA ENERGY CENTER

Address for Notices:  100 Calpine Way
                      Gaston, South Carolina 29053
                      (803) 739-4940

Description of Facility:   The Columbia facility is a nominal 464 MW natural
                           gas-fired combined cycle generating facility with an
                           approximate peak capacity of 641 MW. The facility
                           consists of two General Electric combustion turbines
                           and two Nooter Eriksen heat recovery steam generators
                           which supply steam to a single Toshiba steam turbine.
                           The facility supplies steam to Eastman Chemical
                           Company.

Contractor:     TIC - The Industrial Company

Construction Contract:     Contract for Construction dated July 13, 2001

Engineer:   Sargent & Lundy, L.L.C.

Engineering Contract:      Contract for Professional Services dated as of
                           January 10, 2001

Power Island Supply Contracts:      (1) Purchase Contract for Two PG7241FA Gas
                                    Turbine Generators dated May 14, 2001
                                    between Columbia Energy, L.L.C. and General
                                    Electric Company

                                    (2) Purchase Contract - Steam Turbine
                                    Generator and Accessories; Steam Surface
                                    Condenser and Accessories dated April 2,
                                    2001 between Columbia Energy, L.L.C. and
                                    Toshiba International Corporation

                                    (3) Purchase Contract for Heat Recovery
                                    Steam Generators and Accessories dated May
                                    14, 2001 between Columbia Energy, L.L.C. and
                                    Nooter/Eriksen, Inc.

Scheduled Completion Date: March 2004

GOLDENDALE ENERGY CENTER

    Address for Notices:   600 Industrial Park Way
                           Goldendale, Washington 98620
                           (509) 773-0380

Description of Facility:   The Goldendale facility will be a nominal 237 MW
                           natural gas-fired combined cycle power generating
                           facility with an estimated

                                      A-1

<PAGE>

                           peak capacity of 271 MW. The facility will consist of
                           a single General Electric combustion turbine and a
                           Hitachi heat recoversy steam generator which supplies
                           steam to a single Hitachi steam turbine.

Contractor:     TIC - The Industrial Company

Construction Contract:     Contract for Construction dated November 3, 2003

Engineer:       Cochrane Engineering, Ltd.

Engineering Contract:      Contract for Professional Services dated December
                           1, 2001

Power Island Supply Contracts:      (1) Agreement dated September 22, 2000
                                    between Enron Equipment Procurement Company
                                    and General Electric Company for Gas Turbine
                                    Generator Package, assigned to Goldendale
                                    Energy Center, LLC

                                    (2) Purchase Order No. FR04710003 (Steam
                                    Turbine Generator Set) dated October 18,
                                    2000 between National Energy Production
                                    Company and Hitachi America, Ltd., assigned
                                    to Goldendale Energy Center, LLC

                                    (3) Purchase Order Agreement No. FR04710004
                                    (Heat Recovery Steam Generator) dated
                                    October 18, 2000 between National Energy
                                    Production Company and Hitachi America,
                                    Ltd., assigned to Goldendale Energy Center,
                                    LLC

Scheduled Completion Date: May 2004

PASTORIA ENERGY CENTER

    Address for Notices:   39789 Edmonston Pumping Plant Road
                           Lebec, California 93243
                           (661) 654-8000

Description of Facility:   The Pastoria facility will be a nominal 759 MW
                           natural gas-fired combined cycle generating facility
                           with an estimated peak capacity of 769 MW. Th
                           facility is being constructed in two phases. Phase 1
                           consists of a single General Electric combustion
                           turbine and a Nooter Eriksen heat recovery steam
                           generator which supplies a single General Electric
                           steam turbine. Phase 2 consists of two General
                           Electric combustion turbines and two Nooter Eriksen
                           heat recovery steam generators which supply a single
                           General Electric steam turbine.

Contractor:     Calpine Construction Management Company, Inc.

Construction Contract:     Contract for Construction dated July 1, 2003

Engineer:       Utility Engineering Corporation

                                       A-2

<PAGE>

Engineering Contract: Contract for Professional Services dated March 27, 2001

Power Island Supply Contracts:      Agreement dated May 1, 2000 between
                                    Westdeutsche Landesbank Grizentrale, New
                                    York Branch, acting through its agent Enron
                                    North America Corp., and General Electric
                                    Company for Combined Cycle Power Islands,
                                    amended by Amendment dated September 15,
                                    2000, assigned to Pastoria Energy Facility,
                                    L.L.C.

Scheduled Completion Date: Phase 1 (1X1): September 2004
                           Phase 2 (2X1): August 2005

                                       A-3

<PAGE>

                                    EXHIBIT A

                                       TO

                    MASTER CONSTRUCTION MANAGEMENT AGREEMENT

                              SERVICES DESCRIPTION

DESIGN PHASE

-     Consultation during Facility development

-     Scheduling

-     Prepare Facility budgets

-     Coordination of contract documents

-     Negotiate construction contracts

-     Negotiate design contracts

-     Negotiate major equipment procurement contracts

-     Develop and implement a system for the preparation, review and processing
      of change orders

-     Drawing and specification review

CONSTRUCTION PHASE

-     Project control

-     Coordinate and provide general direction of the work

-     Expedite procurement of major equipment

-     Conduct weekly site schedule and coordination meetings

-     Schedule and conduct progress meetings for Facility Owner

-     Provide regular monitoring of the Facility construction schedules

                                      A-1

<PAGE>

-     Prepare monthly progress reports to present information such as status of
      construction, engineering status, report of actual expenditures vs.
      budget, procurement status, safety report, and status of project schedule
      and milestone dates

-     Review and approve monthly progress estimates

-     Provide Facility Owner information as appropriate so that loan advance
      applications can be prepared by Facility Owner

-     Assist the Facility Owner, Contractor and Engineer in obtaining
      construction and building permits

-     Audit quality control programs

-     Monitor each Contractor's safety program

-     Record the progress of Facility

-     Coordinate with the Engineer in determining the Completion Date for each
      report

-     With Facility Owner's assistance, provide to appropriate governmental
      agencies all of the documents, plans and specifications required by the
      Facility's permits from time to time

-     Administer and enforce Facility Owner's rights under the construction and
      design contracts

START UP AND COMMISSIONING PHASE

-     Review and test Facility subsystems and turnover packages when the
      Contractor states that they are ready for turnover and testing

-     Coordinate and administer the start up of each subsystem and of the
      Facility as a whole

-     Coordinate and administer all Performance Tests

-     Obtain the initial inventory of spare parts in accordance with the
      Construction Management Budget

                                       A-2

<PAGE>

                                    EXHIBIT B

                                       TO

                    MASTER CONSTRUCTION MANAGEMENT AGREEMENT

                         CONSTRUCTION MANAGEMENT BUDGETS

     [The Construction Management Budgets for each Facility are attached.]
<PAGE>

PASTORIA CONSTRUCTION MANAGEMENT
BUDGET

<TABLE>
<CAPTION>
                                           AMOUNTS IN US $
                                         BALANCE TO COMPLETE
                                         -------------------
<S>                                      <C>
CONSTRUCTION MANAGEMENT
 SITE OFFICE
   Base Wages                                 4,889,506
   Consultants and Outside Servies              360,925
   Temporary Living/ Per Diem                   772,891
   Communications Equipment                       5,989
   Field Office Rent                            146,076
   Meals                                          9,538
   Office Supplies and Expense                   59,781
   Office Equipment                              14,537
   Reporduction                                  22,667
   Memberships and Dues                           2,664
   Photograpy                                    11,339
   Contributions                                  8,334
   Relocation                                    40,298
   Safety Equipment and Supplies                  1,314
   Travel & Entertainment Expense                52,653
   Vehicle Expense                               18,271
   Travel Home                                  140,780

 SACRAMENTO LABOR & RELATED COSTS
   Base Wages                                   555,702
   Meals & Entertainment                          4,800
   Travel Expense                                46,991

 CORPORATE LABOR & RELATED COSTS
   Base Wages                                   138,881

COMMISSIONING
 COMMISSIONING
   Support                                    5,092,184
</TABLE>

<PAGE>

<TABLE>
<S>                                          <C>
  Support Per Diem                              370,265
  Craft Support                               1,508,060
  Third Party Testing                           325,000
  Flushes and Flows                             120,000
  Field Supplies                                128,564
  Oil Flushes                                   120,000
  Hydrolaise                                    325,000
  Chemical Clean                                470,000
  Consultants                                   100,000
  First Fill Chemicals                          155,000
  First Fill Oils/Lubricants/Gases              270,000
  Fuels                                       6,020,000
  Power                                      (4,987,500)

MOBILIZATION
 Mobilization (Permanent Operations)            435,411
  Combustion Turbine Spare Parts              9,800,000
                                             ----------
  TOTAL                                      27,555,921
                                             ==========
</TABLE>

<PAGE>

GOLDENDALE CONSTRUCTION MANAGEMENT BUDGET

<TABLE>
<CAPTION>
                                                                    AMOUNTS IN US $
                                                                  BALANCE TO COMPLETE
                                                                  -------------------
<S>                                                               <C>
CONSTRUCTION MANAGEMENT
SITE OFFICE
                       Base Wages                                         703,300
                       Temporary Labor                                    109,920
                       Temporary Living/ Per Diem                           6,000
                       Field Office Rent                                  120,000
                       Meals & Entertainment                                9,000
                       Office Expense                                     180,000
                       Safety Equipment and Supplies                        1,400
                       Travel Expense - Site                               24,000
                       Vehicle Expense                                      9,000

SACRAMENTO LABOR & RELATED COSTS

                       Base Wages                                         100,000
                       Meals & Entertainment                                1,600
                       Travel Expense                                       4,000

CORPORATE LABOR & RELATED COSTS
                       Base Wages                                          12,000
COMMISSIONING
COMMISSIONING
                       Support                                            833,849
                       Support Per Diem                                    98,400
                       Craft Support                                      743,313
                       Third Party Testing                                331,667
                       Flushes and Flows                                  160,000
                       Field Supplies                                      90,000
                       Consultants                                         30,000
                       First Fill Chemicals                                75,000
                       Fuels                                           3,301, 500
                       Power                                              450,000
</TABLE>

<PAGE>

<TABLE>
<S>                                                                    <C>
MOBILIZATION
                       Mobilization (Permanent Operations)              2,475,604
                       Combustion Turbine Spare Parts                   1,884,654
                       Balance of Plant Spares                            800,000
                       Furniture, Office supplies, Equip., Tools           52,364
                       Pickup Truck                                         3,272
                       Performance Won. System/CMMS                        71,625
                                                                       ----------
TOTAL                                                                  12,681,468
                                                                       ==========
</TABLE>

<PAGE>

                                                                      AMOUNTS IN
COLUMBIA CONSTRUCTION MANAGEMENT BUDGET                               US $

<TABLE>
<CAPTION>
                                                                                  BALANCE TO
                                                                                   COMPLETE
                                                                                   --------
<S>                                                                              <C>
CONSTRUCTION MANAGEMENT
                 SITE OFFICE
                                    Base Wages                                   $   516,016
                                    Temporary Living/ Per Diem                   $    61,975
                                    Field Office Rent                            $     7,200
                                    Meals & Entertainment                        $     3,500
                                    Office Expense                               $    11,132
                                    Travel Expense                               $     9,655
                                    Vehicle Expense                              $     7,521
                  SACRAMENTO LABOR & RELATED COSTS
                                    Base Wages                                   $   125,000
                                    Travel Expense                               $    12,000
                  CORPORATE LABOR & RELATED COSTS
                                    Base Wages                                   $    65,000
                                    Travel Expense                               $    15,000
                  REGIONAL LABOR & RELATED COSTS
                                    Base Wages                                   $   525,000
                                    Travel Expense                               $     7,500

COMMISSIONING
                  COMMISSIONING

                                    Support                                      $   165,000
                                    Support Per Diem                             $         0
                                    Craft Support                                $   283,219
                                    Third Parry Testing                          $         0
                                    Flushes and Flows                            $         0
                                    Field Supplies                               $    67,360
                                    Consultants                                  $         0
                                    First Fill Fuel Oil Tank                     $ 1,500,000
                                    First Fill Chemicals                         $    35,453
                                    First Fill Oils/Lubricants/Gases             $    90,000
                                    Fuels                                        $ 5,215,658
</TABLE>

<PAGE>

<TABLE>
<S>                                                                              <C>
                                    Fuels take or pay fees                       $ 1,663,247
                                    Power                                        $    90,000
                  MOBILIZATION
                                    Mobilization (Permanent Operations)          $   350,000
                                    Mobilization Travel                          $     1,200
                                    Combustion Turbine Spare Parts               $ 2,385,962
                                    Balance of Plant Spares                      $ 2,165,950
                                    Engr after Start up                          $   190,000
                                    Furniture, Office supplies, Equip., Tools    $   180,797
                                    Pickup Truck                                 $    16,705
                                    Mobile Equipment                             $   107,547
                                                                                 -----------
                                    Total                                        $15,874,598
                                                                                 ===========
</TABLE><PAGE>

                                                                   EXHIBIT 10.13

                                                                  EXECUTION COPY

                    MASTER ADMINISTRATIVE SERVICES AGREEMENT

                  This MASTER ADMINISTRATIVE SERVICES AGREEMENT (the
"Agreement"), dated as of March 23, 2004 (the "Effective Date"), is entered into
by and among CALPINE GENERATING COMPANY, LLC, a Delaware limited liability
company ("CalGen"), CalGen Finance Corp., a Delaware corporation ("Finance
Corp."), and the other direct or indirect, wholly-owned subsidiaries of CalGen,
as listed on Appendix A, from time to time party hereto (each a "Subsidiary"
and, together with CalGen and Finance Corp., the "Companies"), and CALPINE
ADMINISTRATIVE SERVICES COMPANY, INC., a Delaware corporation, as the
administrative agent hereunder (the "Administrative Agent").

                                    RECITALS

                  WHEREAS, each Company desires to enter into this Agreement
with the Administrative Agent pursuant to which the Administrative Agent shall
provide the Services with respect to such Company, as more fully described
below; and

                  WHEREAS, each Subsidiary is a direct or indirect, wholly-owned
subsidiary of CalGen, and certain of the Subsidiaries, identified as "Facility
Owners" on Appendix A, own gas-fired simple or combined-cycle electric
generation facilities (each a "Facility") described on Appendix A hereto; and

                  WHEREAS, the Companies and the Administrative Agent have
agreed to set forth their agreement regarding the Services to be provided for
each Company in this single Agreement, provided that this Agreement shall apply
separately and independently to each Company, as described below; and

                  WHEREAS, CalGen has agreed to cause each Subsidiary acquired
by CalGen after the Effective Date to become a party to this Agreement by
executing a Joinder to this Agreement in the form attached as Appendix B hereto;
and

                  WHEREAS, CalGen intends to enter into certain Indentures (the
"Indentures") among CalGen, Finance Corp. and Wilmington Trust FSB, as trustee
(the "Trustee"), as well as certain other Security Agreements (as defined in the
Indenture);

                  NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth herein and other valuable consideration, the parties hereto
agree as follows:

                                    ARTICLE 1

                       DEFINITIONS; RULES OF CONSTRUCTION

                  SECTION 1.1. Definitions. Unless otherwise specified,
capitalized terms used but not defined herein have the respective meanings
assigned to such terms in the Indentures.

                  "Affiliate" means with respect to any Person, any other Person
that directly or indirectly controls, is controlled by, or is under common
control with such Person. For purposes of the foregoing definition, "control"
means (i) the direct or indirect ownership of fifty percent (50%) or more of the
outstanding capital stock or other securities or equity interests having
ordinary voting power to elect the board of directors, managing general partner
or similar managing authority or (ii) the power to direct the management of such
Person.

                  "Bankruptcy Event" shall be deemed to occur, with respect to
any Person, if that Person shall institute a voluntary case seeking liquidation
or reorganization under the Bankruptcy Law, or shall consent to the institution
of an involuntary case thereunder against it; or such Person shall file a
petition or consent or shall otherwise institute any similar proceeding under
any other applicable Federal or state law, or shall consent thereto; or such
person shall apply for, or by consent or acquiescence there shall be an

<PAGE>

appointment of, a receiver, liquidator, sequestrator, trustee or other officer
with similar powers for such Person, or any substantial part of its assets; or
such Person shall make an assignment for the benefit of its creditors; or such
Person shall admit in writing its inability to pay its debts generally as they
become due; or if an involuntary case shall be commenced seeking liquidation or
reorganization of such Person under the Bankruptcy Law or any similar
proceedings shall be commenced against such Person under any other applicable
Federal or state law and (i) the petition commencing the involuntary case is not
timely controverted, (ii) the petition commencing the involuntary case is not
dismissed within 60 days of its filing, (iii) an interim trustee is appointed to
take possession of all or a portion of the property, and/or to operate all or
any part of the business of such Person and such appointment is not vacated
within 60 days, or (iv) an order for relief shall have been issued or entered
therein; or a decree or order of a court having jurisdiction in the premises for
the appointment of a receiver, liquidator, sequestrator, trustee or other
officer having similar powers, of such Person or all or a part of its property
shall have been entered; or any other similar relief shall be granted against
such Person under any applicable Federal or state law.

                  "Bankruptcy Law" means Title 11, U.S. Code or any similar
federal or state law for the relief of debtors.

                  "Indemnitees" of a party means each of its Affiliates and
permitted assignees, such party's lenders, and each of the officers, directors,
employees, agents, partners and shareholders of the party and its Affiliates,
permitted assignees and lenders.

                  "Laws" means all laws, statutes, rules, regulations, orders
and ordinances or specified standards or objective criteria contained in any
applicable license, permit or approval, or other legislative or administrative
act, of the United States of America or any state, agency, department,
authority, political subdivision or other instrumentality thereof, or a decree,
judgment or order of a court from time to time in effect, including but not
limited to those governing wages, hours, employment discrimination and safety,
laws regarding workers' compensation, disability laws and employee benefit laws
and including any applicable engineering, construction, safety or electrical
generation code.

                  "Person" means any natural person, corporation, partnership,
limited liability company, firm or other entity.

                  "Prudent Engineering and Operating Practices" means those
practices, methods, equipment, specifications and standards of safety and
performance, as the same may change from time to time, as are commonly used by
independent operators of electric generation stations of a type and size similar
to those constituting the applicable Facility as good, safe and prudent
engineering practices in connection with the operation, maintenance, repair and
use of gas turbines, electrical generators and other equipment and facilities
with commensurate standards of safety, performance, dependability, efficiency
and economy. Prudent Engineering and Operating Practices are not intended to be
limited to the optimum practice or method to the exclusion of others, but rather
to be a spectrum of possible but reasonable practices and methods.

                  "Reference Rate" means the "prime rate" as published in The
Wall Street Journal from time to time.

                  SECTION 1.2. Rules of Construction. As used in this Agreement,
the terms "herein," "herewith," and "hereof" are references to this Agreement,
taken as a whole, the term "includes" or "including" shall mean "including,
without limitation," and references to a "Section," "subsection," "clause,"
"Article," "Exhibit," "Appendix," or "Schedule" shall mean a Section,
subsection, clause, Article, Exhibit, Appendix or Schedule of this Agreement, as
the case may be, unless in any such case the context requires otherwise. All
references to a given agreement, instrument or other document shall be a
reference to that agreement, instrument or other document as modified, amended,
supplemented and restated through the date as of which such reference is made,
and reference to a Law includes any amendment or modification thereof. The
singular shall include the plural and the masculine shall include the feminine
and neuter, and vice versa. Where the words "required," "approved,"
"satisfactory," "determined,"

                                       2
<PAGE>

"acceptable," "decision" or words of like import are used in this Agreement,
action by the Company is indicated unless the context clearly indicates
otherwise.

                  SECTION 1.3 Appendices and Exhibits. This Agreement consists
of this document itself and the following Appendices which are specifically made
a part hereof by reference:

                  APPENDIX A Subsidiaries

                  APPENDIX B Form of Joinder

                  SECTION 1.4 Conflicting Provisions. In the event of any
conflict between this document and any Appendix, schedule or exhibit hereto, the
terms and provisions of this document, as amended from time to time, shall
control. Subject to the foregoing, the several instruments forming part of this
Agreement are to be taken as mutually explanatory of one another and in the case
of ambiguities or discrepancies within or between such parts the same shall be
explained and adjusted by the issuance of a written instruction by CalGen.

                                    ARTICLE 2

                              APPOINTMENT; SERVICES

                  SECTION 2.1 Appointment.

                  (a)      Subject to Sections 2.1(b) and 2.1(c) below, each
         Company hereby appoints and retains the Administrative Agent to be and
         act as its agent to do and perform, throughout the Term, the Services
         for such Company, on the terms and conditions of this Agreement. The
         Administrative Agent hereby accepts such appointment and agrees to
         perform the Services in accordance with the terms and conditions of
         this Agreement. As agent for each Company, the Administrative Agent is
         authorized to act for such Company in its own name or in the name of
         such Company, as deemed necessary or advisable by the Administrative
         Agent

                  (b)      This Agreement, including all Appendices, as
         applicable, exhibits and attachments, shall constitute a separate
         contract between each Company and the Administrative Agent. The
         obligations and liabilities of the Administrative Agent and each
         Company are independent of the obligations and liabilities of the
         Administrative Agent and the other Companies, and events giving rise to
         the termination of this Agreement by any Company shall not entitle the
         Administrative Agent or any other Company to terminate this Agreement
         with respect to itself or any other Company. The Administrative Agent
         and each Company agree that, upon the reasonable request of either
         party, they will execute separate, individual administrative services
         agreements with respect to such Company on the same terms and
         conditions (modified as necessary to reflect the fact that only one
         Company is covered) as are set forth in this Agreement.

                  (c)      CalGen shall have the right to add additional
         Subsidiaries to this Agreement by causing each such Subsidiary to sign
         a Joinder to this Agreement in the form attached as Appendix B hereto.
         If CalGen sells or otherwise transfers a Subsidiary such that such
         Subsidiary is no longer owned by a Subsidiary (or sells or otherwise
         transfers a Subsidiary, such that such Subsidiary is no longer a direct
         or indirect wholly-owned subsidiary of CalGen), this Agreement shall
         not apply to such Subsidiary from and after the effective date of such
         sale or transfer, and, except as otherwise expressly provided herein
         (including under Article 9), CalGen, the applicable Subsidiary and the
         Administrative Agent will be released from all future liabilities, and
         will no longer have any obligations, hereunder with respect to such
         Subsidiary.

                  SECTION 2.2 Services. Subject to the terms of this Agreement
(including Section 2.1), the Administrative Agent shall perform, or cause to be
performed, on behalf of each of each Company, all customary and reasonable
administrative services provided by owners or operators of electric generation
facilities similar to the Facilities (the "Services"), including, without
limitation, accounting,

                                       3
<PAGE>

auditing, financial reporting, budgeting and forecasting, tax, cash management,
review of significant operating and financial matters, contract administrative
services, invoicing, computer and information services, and such other
administrative and regulatory filing services as directed by the applicable
Company. Without limiting the foregoing, from and after the Effective Date, the
Administrative Agent shall provide the following Services to each Company:

                  (a)      maintain its books and records in accordance with
         such Company's constitutive documents (including, as applicable, its
         certificate of incorporation, by-laws, limited liability company
         operating agreement and/or partnership agreement), the Indenture, good
         business practice, Internal Revenue Service regulations, applicable
         law, and generally accepted accounting principles and retain and
         oversee independent auditors to review such books and records on an
         annual basis;

                  (b)      provide cash management services, including (i)
         establishing bank accounts, (ii) investing and transferring funds and
         (iii) effecting payments in accordance with any contracts, agreements
         or other arrangements applicable to the Company, including, as
         applicable, the Index Based Gas Sale and Power Purchase Agreement, the
         WECC Fixed Price Gas Sale and Power Purchase Agreement (together, the
         "CES Power Purchase Agreements"), any other power purchase agreements
         (whether with an unrelated third party or an Affiliate of such Company)
         including for steam or electric energy to which such Company is or may
         in the future be, a party (collectively with the CES Power Purchase
         Agreements, the "Power Purchase Agreements");

                  (c)      provide accounting services related to the
         development and implementation of financial controls and systems,
         including the administering of the proceeds of the issuance of the
         Notes and the Term Loans;

                  (d)      exercise all rights and administer all obligations of
         such Company under the Indenture, the Term Loan Agreement, the
         Revolving Credit Agreement and the Security Agreements, including,
         without limitation, taking all actions necessary or desirable in order
         to perfect and maintain the perfection and priority of security
         interests granted by such Company to its lenders or creditors over any
         assets of such Company;

                  (e)      exercise all rights and perform all of the
         administrative obligations of such Company under each Power Purchase
         Agreement to which it is a party, including, without limitation,
         serving as such Company's point-of-contact, coordinating the exercise
         of such Company's rights and the performance of its obligations under
         such Power Purchase Agreements, providing and receiving notices in
         accordance with the terms thereof, and resolving all disputes and
         coordinating the resolution of disputes (including arbitration
         proceedings) thereunder;

                  (f)      to the extent that amounts are available from the
         Company, pay (or arrange for payment by the Collateral Agent of) all
         fees, debts and obligations (including taxes) incurred or payable by or
         on behalf of the Company;

                  (g)      provide tax-related services;

                  (h)      make and prosecute, or cause to be made or
         prosecuted, such filings and reports, keep such records, and take or
         cause to be taken such other actions as may be necessary and lawful to
         maintain the existence and good standing of such Company and to ensure
         the compliance by such Company with all applicable laws, regulations,
         authorizations, and orders of government agencies (including, without
         limitation, the preparation and/or filing of any reports required to be
         made on behalf of such Company with the Federal Energy Regulatory
         Commission); and

                  (i)      do and perform such other acts as may be mutually
         agreed to by the Administrative Agent and the Company from time to
         time.

                                       4
<PAGE>

Notwithstanding anything to the contrary contained in this Section 2.2 or
elsewhere in this Agreement, the Administrative Agent agrees that it will (a)
not take (or fail to take), any action the taking of which (or the failure to
take) could reasonably be expected to cause the applicable Company to violate
any negative covenant contained in any of the Indentures, the Term Loan
Agreements or the Revolving Credit Agreement and (b) submit for approval to the
appropriate officers, members or partners of the applicable Company all proposed
actions of or on behalf of such Company the approval of which by such officers,
members or partners is required by the constitutive documents of such Company.

                  SECTION 2.3 Standard of Services. The Administrative Agent
shall perform the Services for each Company in all respects in accordance with:
(i) all applicable Laws, (ii) applicable Prudent Engineering and Operating
Practices, (iii) as to each Subsidiary, such Subsidiary's and its Facility's
regulatory status, as applicable, (iv) all safety, fire protection and other
requirements of each Company's insurance policies, (v) the applicable
requirements of any Power Purchase Agreements, and (vi) any warranties related
to the Facilities.

                                    ARTICLE 3

                                  COMPENSATION

                  SECTION 3.1 Compensation. The Administrative Agent shall be
compensated for the Services on a cost reimbursable basis, including reasonable
overhead costs.

                  SECTION 3.2 Reimbursable Expenses. The Administrative Agent
shall be reimbursed for all costs (including internal costs of the
Administrative Agent and its Affiliates and amounts paid to third parties)
incurred for Services, to the extent paid and without duplication (the
"Reimbursable Expenses"). In lieu of making direct payment itself of any costs
or expenses that would constitute Reimbursable Expenses owed to suppliers,
vendors, service providers or other third parties for goods and services
provided to the Companies in connection with the Services hereunder, the
Administrative Agent may request that CalGen (as to Reimbursable Expenses
incurred in respect of it, any Subsidiary or any Facility), or any other Company
(as to Reimbursable Expenses incurred in respect of Services provided to it or,
if applicable, its Facility), pay such costs and expenses directly to such
suppliers, vendors, service providers and other third parties, in which event
CalGen or such other Company, as applicable, shall do so in a timely manner. The
Administrative Agent shall give CalGen or the other Company, as applicable, not
less than 30 days prior written notice in the event it requests such direct
payment and shall review and approve all invoices from suppliers, vendors,
service providers and other third parties prior to submitting them to CalGen or
any other Company for payment. No amounts directly paid by any Company as
provided in this Section 3.2 may be recovered by the Administrative Agent.

                                    ARTICLE 4

                                     PAYMENT

                  SECTION 4.1 Invoices. Within ten days after the last day of
each six-month anniversary of the Effective Date during the Term, the
Administrative Agent shall send each Company an invoice setting forth in
reasonable detail the Administrative Agent's compensation for Services provided
to such Company for such preceding month, accompanied by such supporting
documentation and additional data as such Company may reasonably request.

                  SECTION 4.2 Payment. Subject to Section 4.3, within 20 days
following the date the Company receives an invoice under Section 4.1, such
Company (or, if a Subsidiary, either such Subsidiary or CalGen on behalf of such
Subsidiary) shall pay to the Administrative Agent the undisputed amount of the
invoice. All payments to the Administrative Agent shall be made by wire transfer
to the account of the Administrative Agent, or such other depository as the
Administrative Agent shall designate by written notice to such Company and
CalGen. Any amounts owing from the Administrative Agent to such

                                       5
<PAGE>

Company hereunder may at such Company's option be credited against amounts owing
by such Company to the Administrative Agent hereunder.

                  SECTION 4.3 Notice of Payment Disputes. Notwithstanding the
foregoing, if prior to the expiration of the applicable period for payment
referenced in Section 4.2, a Company disputes that the quality of any Services
provided to it or to a Facility owned, directly or indirectly, by such Company
(payment for which Services is being requested from such Company) is in
accordance with this Agreement, such Company (or, if a Subsidiary, either such
Subsidiary or CalGen on behalf of such Subsidiary) shall, prior to the
expiration of such period, provide the Administrative Agent with written notice
identifying the basis for such dispute. Thereafter, the payment of such disputed
amounts shall be deferred until such dispute has been resolved.

                  SECTION 4.4 Late Payments. If there is a dispute about any
amount invoiced by the Administrative Agent, the amount not in dispute shall be
promptly paid as described in this Article 4. Any disputed amounts which are
ultimately determined to have properly payable, as well as any undisputed
amounts not paid when due, shall be paid with interest at the lower of (a) the
Reference Rate plus two percent, or (b) the highest rate permitted under
applicable law.

                  SECTION 4.5. Audit. The Administrative Agent shall, throughout
the Term of this Agreement and for 36 months following the expiration or earlier
termination hereof with respect to a Company, maintain readily accessible books
and records of the Reimbursable Expenses for such Company (including copies of
supporting invoices) incurred in connection with this Agreement. Each Company
may, from time to time and upon reasonable notice to the Administrative Agent,
review (or cause its auditors to review), such books and records.

                                    ARTICLE 5

                           RESPONSIBILITIES OF COMPANY

                  SECTION 5.1 Items to be Furnished by Company. Each Company
shall furnish, or cause to be furnished, to the Administrative Agent, at such
Company's expense, such information, documentation, services, materials and
other items with respect to such Company (or any applicable Facility), together
with such other items that are not required to be provided by the Administrative
Agent hereunder and which are reasonably requested by the Administrative Agent
to perform the Services for the applicable Company and to otherwise fulfill its
obligations under this Agreement. All such items shall be made available at such
times and in such manner as may be required for the expeditious and orderly
performance of the Services by the Administrative Agent.

                  SECTION 5.2 Remedies for Breach of Section 5.1. In the event
of a breach by a Company of any of its obligations under Section 5.1, the
Administrative Agent shall be entitled to suspend its performance hereunder with
respect to such Company (but only for such Company) to the extent prevented or
restricted in performing its Services for such Company by such breach until such
breach has been cured. The Administrative Agent shall not be entitled to
terminate this Agreement with respect to such Company on account of a breach of
Company's obligations under Section 5.1 unless continued performance of this
Agreement by the Administrative Agent with respect to such Company could violate
any applicable Law or could reasonably be expected to subject the Administrative
Agent to unreasonable liability.

                                    ARTICLE 6

                             INDEPENDENT CONTRACTOR

                  SECTION 6.1 The Administrative Agent shall be an independent
contractor with respect to the performance of the Services hereunder for each
Company. Neither the Administrative Agent nor its employees, subcontractors,
vendors or suppliers, or the employees of any such parties employed in

                                       6
<PAGE>

Company administrative operations, shall be deemed to be agents,
representatives, employees, or servants of a Company, except to the extent of
any express agency created hereunder pursuant to the authority granted to the
Administrative Agent under Article 2. Except as otherwise expressly provided
herein, this Agreement shall not constitute the Administrative Agent as the
legal representative or agent of any Company, nor shall the Administrative Agent
have the right or authority to assume, create or incur any liability or
obligation, express or implied, against, in the name of, or on behalf of any
Company or its members, partners, officers or parents. This Agreement is not
intended to create, and shall not be construed to create, a relationship of
partnership or an association for profit between any Company and the
Administrative Agent.

                                    ARTICLE 7

                              TERM AND TERMINATION

                  SECTION 7.1 Term. This Agreement shall become effective on the
Effective Date and, if not earlier terminated pursuant to this Article 7, shall
continue for 10 years (the "Term"), and shall thereafter continue for successive
one-year renewal terms; provided that the Term shall not be so renewed as to any
or all of the Companies if, no less than 30 days prior to the end of the Term or
any one-year renewal term thereafter, (a) any Company or the Administrative
Agent provides the other with a written notice of nonrenewal (in which case this
Agreement shall not be renewed as to such Company) or (b) as to all of the
Companies if CalGen or the Administrative Agent provides the other and all of
the other Companies with a written notice of nonrenewal (in which case this
Agreement shall not be renewed as to all Companies).

                  SECTION 7.2 Termination.

                  (a)      This Agreement may be terminated by any Company with
         respect to itself, or by CalGen with respect to itself and all the
         Subsidiaries: (i) at any time on 90 days' written notice to the
         Administrative Agent and the payment to Administrative Agent of all
         outstanding amounts owed to Administrative Agent under this Agreement
         by CalGen or such Company, or CalGen and all the Subsidiaries, as
         applicable, or (ii) upon the bankruptcy, insolvency or liquidation of
         the Administrative Agent.

                  (b)      The Administrative Agent and any Company may
         terminate this Agreement in accordance with the terms of Section 8.2.

                  (c)      Notwithstanding the provisions of this Section 7.2,
         the termination of this Agreement shall not in any manner change or
         excuse the obligations of the Administrative Agent under this Agreement
         arising prior to such termination.

                                   ARTICLE 8

                               EVENTS OF DEFAULT

                  SECTION 8.1 Event of Default. An Event of Default shall mean
with respect to any party (the "Defaulting Party"):

                  (a)      The failure by the Defaulting Party to make, when
         due, any payment required hereunder if such failure is not remedied
         within ten Business Days after written notice of such failure is given
         to the Defaulting Party by (i) if the Defaulting Party is the
         Administrative Agent, the applicable Company and (ii) if the Defaulting
         Party is a Company, the Administrative Agent;

                  (b)      Any representation or warranty made by the Defaulting
         Party herein shall prove to have been false or misleading in any
         material respect when made;

                                       7
<PAGE>

                  (c)      The failure by the Defaulting Party to perform any
         material covenant set forth in this Agreement, other than (i) a default
         with respect to a payment obligation, which is subject to Section
         8.1(a) above and (ii) if the Defaulting Party is a Company, a default
         with respect to Section 5.1, the sole remedy for which is set forth in
         Section 5.2; and

                  (d)      The occurrence of a Bankruptcy Event with respect to
         the Defaulting Party.

                  SECTION 8.2 Termination Right. Upon an Event of Default, the
Administrative Agent (if the Defaulting Party is a Company), or the applicable
Company (if the Defaulting Party is the Administrative Agent) (in each case, the
"Non-Defaulting Party") may terminate this Agreement by notice to the Defaulting
Party.

                                    ARTICLE 9

                    INDEMNIFICATION; LIMITATION OF LIABILITY

                  SECTION 9.1 Administrative Agent Indemnification. Subject to
Sections 9.3 and 9.4, the Administrative Agent shall, with respect to each
Company, defend, indemnify and hold such Company and its Indemnitees harmless
from and against any and all claims, actions, damages, expenses (including
reasonable attorneys' fees), losses or liabilities incurred by or asserted
against such Company or its Indemnitees, and any and all fees or penalties
incurred by such Company or its Indemnitees, to the extent that such claims,
actions, damages, expenses, losses, liabilities, are caused by the
Administrative Agent's breach of this Agreement or the negligence or willful
misconduct of the Administrative Agent, its Affiliates, employees, partners,
agents, officers or directors.

                  SECTION 9.2 Company Indemnification. Each Company shall
defend, indemnify and hold the Administrative Agent and its Indemnitees harmless
from and against any and all claims, actions, damages, expenses (including
reasonable attorneys' fees), losses or liabilities incurred by or asserted
against the Administrative Agent or its Affiliates, officers, directors,
employees or agents with respect to such Company to the extent that such claims,
actions, damages, expenses, losses or liabilities are caused by the negligence
or willful misconduct of such Company, its employees, partners, agents, officers
or directors.

                  SECTION 9.3 Limitation of Liability. Notwithstanding any
provision in this Agreement to the contrary, no party nor its Indemnitees shall
be liable hereunder for consequential or indirect loss or damage, including loss
of project revenues, cost of capital, loss of goodwill, increased operating
costs, or any other special, incidental or punitive damages; provided, however,
that the foregoing limitation shall not apply to damages resulting from the
willful misconduct of a party hereto; provided, further that nothing in this
sentence shall limit the obligations of each Company and the Administrative
Agent under this Article 9 to indemnify the other party with respect to claims
by third parties otherwise covered by the provisions of this Article 9. The
Administrative Agent's maximum cumulative liability under this Agreement with
respect to a particular Company, including liability for matters resulting from
the Administrative Agent's breach of this Agreement with respect to such
Company, shall be limited to $50,000 with respect to each Company during each
calendar year in which liability is sought to be imposed; provided, however,
that the foregoing limitation of liability shall not apply to damages resulting
from the Administrative Agent's willful misconduct, and provided further that
the Administrative Agent shall not be liable to the extent that a liability is
covered by the proceeds collected under any policy of insurance then in force
with respect to the Services performed for such Company, with respect to which
the insurer has waived subrogation against the Administrative Agent (which
proceeds shall be applied directly to satisfy the Administrative Agent's
liability under this Agreement). The parties agree that, except for such
liability, each Company's only remedy for breach of this Agreement by the
Administrative Agent shall be to terminate this Agreement pursuant to Section
7.2. The parties further agree that the waivers and disclaimers of liability,
indemnities, releases from liability, and limitations on liability expressed in
this Agreement shall survive termination or expiration of this Agreement with
respect to any Company, and shall apply (unless otherwise expressly indicated),
whether in contract, equity, tort or otherwise, even in the event of the fault,
negligence, including sole negligence, strict liability, or breach of warranty
of the party

                                       8
<PAGE>

indemnified, released or whose liabilities are limited, and shall extend to the
partners, principals, directors, officers and employees, agents and related or
affiliated entities of such party, and their partners, principals, directors,
officers and employees.

                  SECTION 9.4 Limitations on Recourse. The obligations of the
parties under this Agreement are obligations of the parties only, and no
recourse shall be available against any officer, director, employee, agent,
stockholder, member or partner of a party or its Affiliates. In addition,
recourse against a Company with respect to this Agreement is limited to such
Company's tangible and intangible assets, the revenue and income produced
thereby and the proceeds of any of the foregoing.

                  SECTION 9.5 Survival. The provisions of this Article 9 shall
survive termination, cancellation or expiration of this Agreement with respect
to any Company.

                                   ARTICLE 10

                                PROPRIETARY DATA

                  SECTION 10.1 The Administrative Agent and each Company agree
to hold confidential and proprietary, except as may be reasonably necessary from
time to time to perform the Services hereunder, any proprietary or trade secret
information supplied to the other, or designated as confidential. The provisions
of this Article 10 shall not apply to information within any one of the
following categories or any combination thereof: (a) information which was in
the public domain prior to the receipt thereof or which subsequently becomes
part of the public domain by publication or otherwise except by the recipient's
wrongful act; (b) information which the recipient demonstrates was lawfully in
his possession prior to receipt thereof through no breach of any confidentiality
obligation; (c) information received from a third party having no obligation of
confidentiality with respect thereto; or (d) information required to be divulged
pursuant to law or court order.

                                   ARTICLE 11

                                  MISCELLANEOUS

                  SECTION 11.1 Representations and Warranties. Each party
represents and warrants to each other party that: (a) such party has the full
power and authority to execute, deliver and perform this Agreement and to carry
out the transactions contemplated hereby; (b) the execution and delivery of this
Agreement by such party and the consummation by such party of the transactions
contemplated hereby have been duly authorized by all requisite corporate or
other action, and this Agreement has been duly executed and delivered by such
party, enforceable against it in accordance with the terms hereof, subject to
bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the enforcement of creditor's rights generally and to
general principles of equity; (c) no authorization, consent, approval or order
of, notice to, or registration, qualification, declaration or filing with, any
governmental authority, is required for the execution, delivery and performance
by such party of this Agreement or the consummation by such party of the
material transactions contemplated hereby, other than regulatory and similar
approvals needed for the operation of the Facilities, as applicable, and (d)
none of the execution, delivery and performance by such party of this Agreement,
the compliance with the terms and provisions hereof, and the consummation of the
transactions contemplated hereby, conflicts or will conflict with or result in a
breach or violation of any of the terms, conditions, or provisions of any law,
governmental rule or regulation or the charter or certificate of formation, as
amended, or bylaws, as amended, of such party or any applicable order, writ,
injunction, judgment, or degree of any court or governmental authority against
such party, or any material loan agreement, indenture, mortgage, bond, note,
contract or other agreement or instrument to which such party is a party or by
which it is bound, other than as would not reasonably be expected to have a
material adverse effect on such party's ability to perform, or its performance
of, its obligations hereunder.

                                       9
<PAGE>

                  SECTION 11.2 Assignment. No Company nor the Administrative
Agent may assign this Agreement with respect to itself or any or all of the
Companies, nor may the Administrative Agent delegate to another the performance
of the Services with respect to any or all of the Companies, in each case
without the prior written consent of each affected party, which consent shall
not be unreasonably withheld or delayed so long as the applicable assignee
agrees to be bound by, be subject to and comply with the terms and conditions of
this Agreement; provided, however that each Company shall have the right to
assign its rights under this Agreement individually, or any two or more
Companies shall have the right to assign their rights under this Agreement in
the aggregate, for financing purposes. In connection with any financing, the
Administrative Agent shall execute a consent to assignment in customary form.
Nothing contained herein shall prevent any Company from pledging or mortgaging
all or any part of its assets or interests in connection with any financing.

                  SECTION 11.3 Governing Law; Exclusive Jurisdiction. THIS
AGREEMENT SHALL BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ACTIONS TO
ENFORCE OR INTERPRET THIS AGREEMENT OR TO RESOLVE DISPUTES HEREUNDER SHALL BE
BROUGHT IN THE UNITED STATES DISTRICT COURT IN NEW YORK, NEW YORK, OR, IF SUCH
COURT DOES NOT HAVE JURISDICTION OVER SUCH ACTION, IN THE SUPREME COURT OF THE
STATE OF NEW YORK IN NEW YORK COUNTY, NEW YORK, WHICH COURTS SHALL HAVE
EXCLUSIVE JURISDICTION WITH RESPECT TO SUCH MATTERS. FOR PURPOSES OF THE
FOREGOING, COMPANY AND THE ADMINISTRATIVE AGENT EACH HEREBY SUBMITS AND AGREES
TO THE JURISDICTION OF SUCH COURTS.

                  SECTION 11.4 Binding Effect. This Agreement and any extension
shall inure to the benefit of and be binding upon the Parties and their
respective permitted successors and assigns.

                  SECTION 11.5 Entire Agreement; Amendments. This Agreement
constitutes the entire agreement between the Administrative Agent and each
Company with respect to the subject matter covered hereby and supersedes any and
all prior negotiations, representations, agreements or understandings relating
hereto. This Agreement may be amended only by a writing signed by a duly
authorized representative of each affected party.

                  SECTION 11.6 Waivers. The Administrative Agent and any Company
may specifically waive any breach of this Agreement by the other, but no such
waiver shall be deemed to have been given unless such waiver is in writing,
signed by the waiving party and specifically designates the breach waived, nor
shall any such waiver constitute a continuing waiver of similar or other
breaches.

                  SECTION 11.7 Notices. All notices, requests, offers, reports
and other communications required or permitted to be made under this Agreement
shall be in writing, and shall be given by first class, registered or certified
mail, postage prepaid, or by hand-delivered telegram, or by telex or facsimile.
All notices shall be addressed as follows:

                  To Administrative Agent:

                           Calpine Administrative Services Company, Inc.
                           104 Woodmere Road
                           Folsom, California 95630
                           Attn: General Counsel
                           Facsimile No: (916)995-0505
                           Telephone No: (916)995-5115

                                       10
<PAGE>

                  With a copy to:

                           Calpine Corporation
                           50 West San Fernando Street
                           San Jose, California 95113
                           Attn: General Counsel
                           Facsimile No: (916)995-0505
                           Telephone No: (916)995-5115

                  To CalGen:

                           Calpine Generating Company, LLC
                           c/o Calpine Corporation
                           50 West San Fernando Street
                           San Jose, California 95113
                           Attn: General Counsel
                           Facsimile: (408) 995-0505
                           Telephone: (408)995-5115

                  To Finance Corp.:

                           CalGen Finance Corp.
                           c/o Calpine Corporation
                           50 West San Fernando Street
                           San Jose, California 95113
                           Attn: General Counsel
                           Facsimile: (408) 995-0505
                           Telephone: (408)995-5115

                  and

                           To each Subsidiary at its address set forth on
                           Appendix A attached hereto or, if applicable, a
                           Subsidiary's Joinder;

or at such other address as either party may designate from time to time in
writing by like notice to the other party. Notices shall be deemed duly given at
the time delivery is received at the address provided for above.

                  SECTION 11.8 No Third Party Benefits. Except with respect to
the rights of a lender or trustee (or as to either, its agent) pursuant to an
assignment for financing purposes as provided in Section 11.2 and for the rights
of Indemnitees under Article 9, this Agreement and each and every provision
thereof is for the exclusive benefit of each Company and Administrative Agent
and is not for the benefit of any third party.

                  SECTION 11.9 Title to Materials. Title to all materials,
equipment, supplies, consumables, spare parts and other items purchased or
obtained by the Administrative Agent for a Company on a Reimbursable Expense
basis shall pass immediately to and vest in Company upon the passage of title
from the vendor or supplier thereof.

                  SECTION 11.10 Partial Invalidity. If any term, provision,
covenant, or condition of this Agreement is held by a court of competent
jurisdiction to be invalid, void, or unenforceable, whether in its application
to one or more Companies or with respect to this Agreement as a whole, the rest
of this Agreement shall remain in full force and effect and in no way be
affected, impaired, or invalidated.

                                       11
<PAGE>

                  SECTION 11.11 Headings. The headings herein in this Agreement
are for reference only and shall not affect the construction of this Agreement.

                  SECTION 11.12 Counterparts. This Agreement may be executed in
counterparts, and any number of counterparts signed in the aggregate by the
parties hereto shall constitute a single original document.

                  SECTION 11.13 Separate Agreements. Each Company and the
Administrative Agent have agreed that this Agreement applies separately to each
Company, as well as to the Companies as a whole. In applying this Agreement,
"Company" shall be understood to mean each Company separately, unless the
context indicates otherwise (e.g. that all Companies are intended to be
included).

                  SECTION 11.14 Specific Performance. Each Company and the
Administrative Agent hereby acknowledge that money damages would not be a
sufficient remedy for any breach of this Agreement and that irreparable harm
would result if this Agreement were not specifically enforced. Therefore,
notwithstanding any other provision hereof, the rights and obligations of such
Company and the Administrative Agent under this Agreement shall be enforceable
by a decree of specific performance issued by any court of competent
jurisdiction and appropriate injunctive relief may be applied for and granted in
connection therewith. The right of such Company and the Administrative Agent to
specific performance hereunder shall be in addition to all other legal or
equitable remedies available to such part.

                                       12
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this Master
Administrative Agent Agreement to be executed by their officers or partners
thereunto duly authorized as of the day and year first above written.

CALPINE ADMINISTRATIVE SERVICES          CALPINE GENERATING COMPANY, LLC
COMPANY, INC.

By: /s/ Rodney Malcolm                   BY: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name : RODNEY MALCOLM                    Name:   ZAMIR RAUF
    Title: Authorized Signatory              Title:  Vice President

CALGEN FINANCE CORP.                     CALGEN EXPANSION COMPANY, LLC

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

BAYTOWN ENERGY CENTER, L.P.              CALPINE BAYTOWN ENERGY CENTER, GP, LLC

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

CALPINE BAYTOWN ENERGY CENTER LP, LLC    BAYTOWN POWER GP, LLC

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

BAYTOWN POWER, LP                        CARVILLE ENERGY, LLC By:.

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

CHANNEL ENERGY CENTER, LP                CALPINE CHANNEL ENERGY CENTER GP, LLC

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

Signature page to Master Administrative Agent Agreement

<PAGE>

CHANNEL POWER GP, LLC                    CHANNEL POWER, LP

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

COLUMBIA ENERGY LLC

COLUMBIA ENERGY LLC                      CORPUS CHRISTI COGENERATION, LP

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

NUECES BAY ENERGY LLC                    CALPINE NORTHBROOK SOUTHCOAST
                                         INVESTORS, LLC

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

CALPINE CORPUS CHRISTI ENERGY GP, LLC    CALPINE CORPUS CHRISTI ENERGY, LP

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

DECATUR ENERGY CENTER, LLC               DELTA ENERGY CENTER, LLC

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

FREESTONE POWER GENERATION LP            CALPINE FREESTONE, LLC

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

CPN FREESTONE, LLC                       CALPINE FREESTONE ENERGY GP, LLC

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

Signature page to Master Administrative Agent Agreement

<PAGE>

CALPINE FREESTONE ENERGY, LP             CALPINE POWER EQUIPMENT LP

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

GOLDENDALE ENERGY CENTER, LLC            LOS MEDANOS ENERGY CENTER, LLC

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

MORGAN ENERGY CENTER, LLC                PASTORIA ENERGY FACILITY L.L.C.

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

CALPINE PASTORIA HOLDINGS, LLC           CALPINE ONETA POWER, L.P.

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

CALPINE ONETA POWER I, LLC               CALPINE ONETA POWER II, LLC

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

ZION ENERGY, LLC                         CALGEN EQUIPMENT FINANCE HOLDINGS, LLC

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

CALGEN EQUIPMENT FINANCE COMPANY, LLC    CALGEN PROJECT EQUIPMENT FINANCE
                                         COMPANY ONE, LLC

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

Signature page to Master Administrative Agent Agreement

<PAGE>

CALGEN PROJECT EQUIPMENT FINANCE         CALGEN PROJECT EQUIPMENT FINANCE
COMPANY TWO, LLC                         COMPANY THREE, LLC

By: /s/ Zamir Rauf                       By: /s/ Zamir Rauf
    ---------------------------              ----------------------------
    Name:   ZAMIR RAUF                       Name:   ZAMIR RAUF
    Title:  Vice President                   Title:  Vice President

Signature page to Master Administrative Agent Agreement

<PAGE>

                                   APPENDIX A

                                  SUBSIDIARIES

CALGEN EXPANSION COMPANY, LLC, a Delaware limited liability company

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

BAYTOWN ENERGY CENTER, LP, a Delaware limited partnership
Facility Owner
Address:          8605 FM 1405
                  Baytown, Texas 77520
                  Telephone: (281)303-4200

Description:      The Baytown facility is a nominal 742 MW natural gas-fired
                  combined cycle generating facility with an estimated peak
                  capacity of 830 MW. The facility consists of three Siemens
                  combustion turbines and three Nooter Eriksen heat recovery
                  steam generators which supply steam to a single Toshiba steam
                  turbine. The facility supplies power and steam to Bayer
                  Corporation.

CALPINE BAYTOWN ENERGY CENTER GP, LLC, a Delaware limited liability company

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408) 995-0505
           Telephone: (408) 995-5115

CALPINE BAYTOWN ENERGY CENTER LP, LLC, a Delaware limited liability company

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408) 995-0505
           Telephone: (408)995-5115

BAYTOWN POWER GP, LLC, a Delaware limited liability company

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile; (408) 995-0505
           Telephone: (408)995-5115

BAYTOWN POWER, LP, a Delaware limited partnership

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

<PAGE>

CARVILLE ENERGY LLC, a Delaware limited liability company
Facility Owner

 Address:         4322 LA Highway 30
                  Saint Gabriel, Louisiana 70776
                  Telephone: (225)642-8993

Description:      The Carville facility is a nominal 455 MW natural gas-fired
                  combined cycle generating facility with an approximate peak
                  capacity of 531 MW. The facility consists of two General
                  Electric combustion turbines and two Alstom heat recovery
                  steam generators which supply steam to a single Alstom steam
                  turbine. The facility supplies steam to Cos-Mar Corporation.

CHANNEL ENERGY CENTER, LP, a Delaware limited partnership
Facility Owner

Address:          12000 Lawndale Street, LCR Gate 5
                  Pasadena, Texas 77017
                  Telephone: (713)456-1300

Description:      The Channel facility is a nominal 527 MW natural gas-fired
                  combined cycle generating facility. The facility consists of
                  two Siemens combustion turbines and two Nooter Eriksen heat
                  recovery steam generators which supply steam to a single
                  Toshiba steam turbine. The facility supplies power and steam
                  to Lyondell-CITGO Refining, L.P.

CALPINE CHANNEL ENERGY CENTER GP, LLC, a Delaware limited liability company

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408) 995-0505
           Telephone: (408)995-5115

CALPINE CHANNEL ENERGY CENTER LP, LLC, a Delaware limited liability company
Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408) 995-0505
           Telephone: (408)995-5115

CHANNEL POWER GP, LLC, a Delaware limited liability company

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408) 995-0505
           Telephone: (408)995-5115

CHANNEL POWER, LP, a Delaware limited partnership

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408) 995-0505
           Telephone: (408)995-5115

                                       2
<PAGE>

COLUMBIA ENERGY LLC, a Delaware limited liability company
Facility Owner

Address:          100 Calpine Way
                  Gaston, South Carolina 29053
                  Telephone: (803) 739-4940

Description:      The Columbia facility is a nominal 464 MW natural gas-fired
                  combined cycle generating facility with an approximate peak
                  capacity of 641 MW. The facility consists of two General
                  Electric combustion turbines and two Nooter Eriksen heat
                  recovery steam generators which supply steam to a single
                  Toshiba steam turbine. The facility supplies steam to
                  Eastman Chemical Company.

CORPUS CHRISTI COGENERATION LP, a Delaware limited partnership
Facility Owner

Address:          3852 Buddy Lawrence Drive
                  Corpus Christi, Texas 78407
                  Telephone: (361) 696-7700

Description:      The Corpus Christi facility is a nominal 414 MW natural
                  gas-fired combined cycle generating facility with an
                  approximate peak capacity of 537 MW. The facility consists of
                  two General Electric combustion turbines and two Alstom heat
                  recovery steam generators which supply steam to a single
                  Alstom steam turbine. The facility supplies power and steam to
                  CITGO Refining and Chemicals, L.P., Elementis Chrominum, L.P.
                  and Flint Hills Resources, L.P.

NUECES BAY ENERGY LLC, a Delaware limited liability company

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408) 995-0505
           Telephone: (408)995-5115

CALPINE NORTHBROOK SOUTHCOAST INVESTORS, LLC, a Delaware limited liability
company

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408) 995-0505
           Telephone: (408)995-5115

CALPINE CORPUS CHRISTI ENERGY GP, LLC, a Delaware limited liability company

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408) 995-0505
           Telephone: (408)995-5115

CALPINE CORPUS CHRISTI ENERGY, LP, a Delaware limited partnership

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408) 995-0505
           Telephone: (408)995-5115

                                       3
<PAGE>

DECATUR ENERGY CENTER, LLC, a Delaware limited liability company
Facility Owner

Address:          2024 Highway 20 West
                  Decatur, Alabama 35601
                  Telephone: (256)301-6500

Description:      The Decatur facility is a nominal 692 MW natural gas-fired
                  combined cycle generating facility with an approximate peak
                  capacity of 838 MW. The facility consists of three Siemens
                  combustion turbines and three Nooter Eriksen heat recovery
                  steam generators which supply steam to a single Toshiba steam
                  turbine. The facility supplies steam to Solutia Inc.

DELTA ENERGY CENTER, LLC, a Delaware limited liability company
Facility Owner

Address:          1200 Darcy Lane
                  Pittsburg, California 94565
                  Telephone: (925)756-0789

Description:      The Delta facility is a nominal 799 MW natural gas-fired
                  combined cycle generating facility with an estimated peak
                  capacity of 882 MW. The facility consists of three Siemens
                  combustion turbines and three Deltak heat recovery steam
                  generators which supply steam to a single Toshiba steam
                  turbine.

FREESTONE POWER GENERATION LP, a Texas limited partnership
Facility Owner

Address:          1366 FM 488
                  Fairfield, Texas 75840
                  Telephone: (903) 389-1400

Description:      The Freestone facility is a nominal 1,022 MW natural gas-fired
                  combined cycle generating facility with an approximate peak
                  capacity of 1,022 MW. The facility consists of four General
                  Electric combustion turbines and four Nooter Eriksen heat
                  recovery steam generators which supply steam to two General
                  Electric steam turbines.

CALPINE FREESTONE, LLC, a Delaware limited liability company

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San lose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

CPN FREESTONE, LLC, a Delaware limited liability company

Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

                                       4
<PAGE>

CALPINE FREESTONE ENERGY GP, LLC, a Delaware limited liability company
Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

CALPINE FREESTONE ENERGY, LP, a Delaware limited partnership
Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

CALPINE POWER EQUIPMENT LP, a Texas limited partnership
Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

GOLDENDALE ENERGY CENTER, LLC
Facility Owner
Address:          600 Industrial Park Way
                  Goldendale, Washington 98620
                  Telephone: (509)773-0380

Description:      The Goldendale facility will be a nominal 237 MW natural
                  gas-fired combined cycle power generating facility with an
                  estimated peak capacity of 271 MW. The facility will consist
                  of a single General Electric combustion turbine and a Hitachi
                  heat recoversy steam generator which supplies steam to a
                  single Hitachi steam turbine.

LOS MEDANOS ENERGY CENTER, LLC, a Delaware limited liability company
Facility Owner
Address:   750 East Third Street
           Pittsburg, California 94565
           Telephone: (925)473-2180

Description:      The Los Medanos facility is a nominal 497 MW natural gas-fired
                  combined cycle generating facility with an estimated peak
                  capacity of 566 MW. The facility consists of two General
                  Electric combustion turbines and two Nooter Eriksen heat
                  recovery steam generators which supply steam to a single
                  General Electric steam turbine. The facility supplies power
                  and steam to USS-POSCO Industries and may supply power to Dow
                  Chemical Company.

                                       5
<PAGE>

MORGAN ENERGY CENTER, LLC, a Delaware limited liability company
Facility Owner
Address:          1410 Red Hat Road
                  Decatur, Alabama 35601
                  Telephone: (256)308-3300

Description:      The Morgan facility is a nominal 722 MW natural gas-fired
                  combined cycle generating facility with an approximate peak
                  capacity of 852 MW. The facility consists of three Siemens
                  combustion turbines and three Nooter Eriksen heat recovery
                  steam generators which supply steam to two Toshiba steam
                  turbines. The facility supplies steam to BP Amoco Chemical
                  Company.

PASTORIA ENERGY FACILITY L.L.C., a Delaware limited liability company
Facility Owner
Address:          39789 Edmonston Pumping Plant Road
                  Lebec, California 93243
                  Telephone: (661)654-8000

Description:      The Pastoria facility will be a nominal 759 MW natural
                  gas-fired combined cycle generating facility with an estimated
                  peak capacity of 769 MW. The facility is being constructed in
                  two phases. Phase 1 consists of a single General Electric
                  combustion turbine and a Nooter Eriksen heat recovery steam
                  generator which supplies a single General Electric steam
                  turbine. Phase 2 consists of two General Electric combustion
                  turbines and two Nooter Eriksen heat recovery steam generators
                  which supply a single General Electric steam turbine.

CALPINE PASTORIA HOLDINGS, LLC, a Delaware limited liability company
Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

CAIPINE ONETA POWER, L.P., a Delaware limited partnership
Facility Owner
Address:          25142 East 105th Street South
                  Broken Arrow, Oklahoma 74014
                  Telephone: (918)486-1800

Description:      The Oneta facility is a nominal 994 MW natural gas-fired
                  combined cycle generating facility with an approximate peak
                  capacity of 994 MW. The facility consists of four General
                  Electric combustion turbines and four Nooter Eriksen heat
                  recovery steam generators which supply steam to two Toshiba
                  steam turbines.

CALPINE ONETA POWER I, LLC, a Delaware limited liability company
Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

                                       6
<PAGE>

CALPINE ONETA POWER II, LLC, a Delaware limited liability company
Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

ZION ENERGY LLC, a Delaware limited liability company
Facility Owner
Address:          5701 Ninth Street
                  Zion, Illinois 60099
                  Telephone: (847)731-6250

Description:      The Zion facility is a nominal 513 MW simple cycle peaking
                  facility with an estimated peak capacity of 513 MW. The
                  facility consists of three General Electric combustion
                  turbines. The facility generally runs on natural gas, but is
                  capable of running on oil.

CALGEN EQUIPMENT FINANCE HOLDINGS, LLC, a Delaware limited liability company
Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408) 995-0505
           Telephone: (408)995-5115

CALGEN EQUIPMENT FINANCE COMPANY, LLC, a Delaware limited liability company
Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

CALGEN PROJECT EQUIPMENT FINANCE COMPANY ONE, LLC, a Delaware limited liability
company
Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

CALGEN PROJECT EQUIPMENT FINANCE COMPANY TWO, LLC, a Delaware limited liability
company
Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

                                       7
<PAGE>

CALGEN PROJECT EQUIPMENT FINANCE COMPANY THREE, LLC, a delaware limited
liability company
Address:   c/o Calpine Corporation
           50 West San Fernando Street
           San Jose, California 95113
           Attn: General Counsel
           Facsimile: (408)995-0505
           Telephone: (408)995-5115

                                       8
<PAGE>

                                   APPENDIX B

                                 FORM OF JOINDER

<PAGE>

                                JOINDER AGREEMENT

                  This JOINDER AGREEMENT (the "Joinder"), dated as
of_____________, 200__, is entered into by and among CALPINE GENERATING COMPANY,
LLC, a Delaware limited liability company ("CalGen"),__________________________,
a_____________________ (the "Additional Subsidiary", and CALPINE ADMINISTRATIVE
SERVICES COMPANY, INC., a Delaware corporation, as the administrative agent (the
"Administrative Agent").

                                    RECITALS

                  WHEREAS, the Additional Subsidiary is a direct or indirect,
wholly-owned subsidiary of CalGen[, and is the direct or indirect owner of a
gas-fired simple- or combined-cycle electric generation facility (an "Additional
Facility"): and

                  WHEREAS, in accordance with the terms of the Master
Administration Services Agreement, dated as of March 23, 2004 (the
"Administrative Services Agreement"), among CalGen, CalGen Finance Corp.
("Finance Corp."). the direct or indirect, wholly-owned subsidiaries of CalGen
from time to time party thereto (each a "Subsidiary" and, together with CalGen
and Finance Corp., the "Companies") and the Administrative Agent, the Additional
Subsidiary desires to join in and become a "Subsidiary" under the Administrative
Services Agreement;

                  NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth herein and other valuable consideration, the parties hereto
agree as follows:

                                     JOINDER

                  1.       As of the date hereof, the Additional Subsidiary is
hereby joins in the Administrative Services Agreement as a Subsidiary
thereunder, and in furtherance thereof, the Additional Subsidiary expressly
agrees:

                  a.       to be bound by all of the terms and provisions of the
         Administrative Services Agreement as though the Additional Subsidiary
         were an original party thereto and were included in the definition of
         Subsidiary as used therein for all purposes thereunder; and

                 [b.       the Additional Facility shall be included in the
         definition of Facility as used in the Administrative Services Agreement
         for all purposes thereunder.]

The Additional Subsidiary acknowledges receipt of a copy of the Administrative
Services Agreement. The Additional Subsidiary agrees and acknowledges that it
has read the Administrative Services Agreement and understands that by signing
this document, it shall assume all of the duties and obligations of a Subsidiary
thereunder.

                  2.       Information Regarding Additional Facility. In
accordance with the Administrative Services Agreement, the Additional Subsidiary
is providing the following information regarding the Additional Facility:

                  a.       Address of Facility. [PROVIDE ADDRESS]

         The Additional Subsidiary agrees that such address is its address for
         the receipt of notices under the Administrative Services Agreement.

                  b.       Description of Facility. [PROVIDE DESCRIPTION]

                  3.       Representations and Warranties. The Additional
Subsidiary hereby represents and warrants (a) it has the full power and
authority to execute, deliver and perform this Joinder and to carry out the
transactions contemplated hereby, (b) the execution and delivery by it of this
Joinder and the

<PAGE>

consummation by it of the transactions contemplated hereby have been duly
authorized by all requisite corporate or other action, and this Joinder has been
duly executed and delivered by it, is enforceable against it in accordance with
the terms hereof, subject to bankruptcy, insolvency, reorganization, moratorium
or other similar laws relating to or affecting the enforcement of creditor's
rights generally and to general principles of equity; (c) no authorization,
consent, approval or order of, notice to, or registration, qualification,
declaration or filing with, any governmental authority, is required for the
execution, delivery and performance by it of this Joinder or the consummation by
it of the material transactions contemplated hereby, other than regulatory and
similar approvals needed for the operation of the Additional Facility, as
applicable, and (d) none of the execution, delivery and performance by it of
this Joinder, the compliance with the terms and provisions hereof, and the
consummation of the transactions contemplated hereby, conflicts or will conflict
with or result in a breach or violation of any of the terms, conditions, or
provisions of any law, governmental rule or regulation or the charter or
certificate of formation, as amended, or bylaws, as amended, of such party or
any applicable order, writ, injunction, judgment, or degree of any court or
governmental authority against such party, or any material loan agreement,
indenture, mortgage, bond, note, contract or other agreement or instrument to
which it is a party or by which it is bound, other than as would not reasonably
be expected to have a material adverse effect on its ability to perform, or its
performance of, its obligations hereunder.

                  4.       Defined Terms. Capitalized terms used and not
otherwise defined herein shall have the meanings given to them in the
Administrative Services Agreement.

                  5.       Governing Law. THIS JOINDER AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

                  6.       Counterparts. This Agreement may be executed in
counterparts, and any number of counterparts signed in the aggregate by the
parties hereto shall constitute a single original document.

                                       2
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this Master
Administrative Agent Agreement to be executed by their officers or partners
thereunto duly authorized as of the day and year first above written.

[CALPINE ADMINISTRATIVE SERVICES               CALPINE GENERATING COMPANY, LLC
COMPANY, INC.,]

 By:_____________________________              By:______________________________
    Name:                                         Name:
    Title:                                        Title:

[ADDITIONAL SUBSIDIARY]

BY:_____________________________
   Name:
   Title:

                                       3

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