Document:

<PAGE>

                                                                EXHIBIT 10.1.2.7

                           FIFTH AMENDMENT AND WAIVER
                    TO AMENDED AND RESTATED CREDIT AGREEMENT

         This FIFTH AMENDMENT AND WAIVER, dated as of December 30, 2003 (this
"Amendment and Waiver"), to the Amended and Restated Credit Agreement, dated as
of July 16, 2003 (as the same may be amended, supplemented or otherwise modified
from time to time, the "Credit Agreement"), among CALPINE CORPORATION, a
Delaware corporation (together with its successors, the "Borrower"), the various
financial institutions as are or may become parties hereto (collectively, the
"Lenders"), various lead Arrangers (as defined below), and THE BANK OF NOVA
SCOTIA ("Scotia Capital"), as administrative agent and funding agent (in such
capacity, the "Agent").

                              W I T N E S S E T H:

         WHEREAS, the Borrower, the Lenders and the Agent have heretofore
entered into the Credit Agreement;

         WHEREAS, the Borrower, the Lenders and the Agent now desire to amend
the Credit Agreement in certain respects, as hereinafter provided; and

         WHEREAS, the Borrower has requested that the Agent and the Lenders
agree to waive any failure by the Borrower to comply with certain provisions of
the Credit Agreement, upon the terms and subject to the conditions set forth
herein;

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein contained and for other good and valuable consideration, the
receipt of which is hereby acknowledged, the Borrower, the Lenders and the Agent
hereby agree as follows:

         SECTION 1. Defined Terms. Unless otherwise defined herein, capitalized
terms used herein shall have the meanings set forth in the Credit Agreement.

         SECTION 2. Amendment to Section 1.1 (Defined Terms). Section 1.1 of the
Credit Agreement is hereby amended by inserting the following new definition in
appropriate alphabetical order:

                  "Fifth Amendment" means the Fifth Amendment and Waiver to the
                  Amended and Restated Credit Agreement, dated as of December
                  30, 2003, among the Borrower, the Lenders and the Agent.

                  "Former Pledged Entity" means each Subsidiary of the Borrower
                  set forth on Annex A to the Fifth Amendment.

                  "Key Holding Companies" means the following direct
                  Subsidiaries of the Borrower:

                           Calpine Administrative Services Company, Inc.;
                           Calpine Energy Holdings, Inc.;

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                                                                               2

                           Calpine Finance
                           Company; Calpine Fuels Corporation
                           Calpine Calgary, Inc.;
                           Calpine Operating Management Company, Inc.; and
                           Calpine Power Company.

         SECTION 3. Amendment to Section 8.1.10 (Ownership Interests). Section
8.1.10 of the Credit Agreement is hereby amended by deleting such Section in its
entirety and substituting in lieu thereof the following text:

                  CCI shall at all times directly or indirectly own 100% of all
                  equity interests of CCEC, which shall, in turn, directly or
                  indirectly own 100% of the equity interests in Saltend and in
                  CCNGP. CCNGP shall at all times own all of the Canadian Gas
                  Reserves. The Borrower shall at all times own 100% of the
                  equity interests of CCI. The Borrower shall at all times own
                  100% of the equity interests of Calpine Power Company. Calpine
                  Power Company shall, directly or indirectly, at all times own
                  100% of the equity interests of CCFCI. CCI shall at all times
                  own 100% of the equity interests of QM, JOQ, and QCH; QM, JOQ
                  and QCH shall at all times own 100% of the equity interests of
                  CCEC; CCEC shall at all times own 100% of the equity interests
                  of CCRC and CCNGC; and CCRC and CCNGC shall at all times own
                  100% of the equity interests of CCNGP. Nothing in this Section
                  8.1.10 shall, however, be deemed to limit (i) the
                  reorganization of CCNGP's direct ownership such that the
                  partnership interests in CCNGP are owned and held by (A) a
                  Subsidiary of the Borrower formed as a result of the
                  consolidation or merger of CCRC and CCNGC and (B) another
                  Subsidiary of the Borrower or a new Subsidiary of the Borrower
                  formed by the Borrower or one of its Subsidiaries, (ii) the
                  ability of any one or more of QM, JOQ or QCH to merge or
                  consolidate with one or more of the others (subject only to a
                  delivery of a certificate in a form reasonably satisfactory to
                  the Agent to the effect that the merged entity would not be
                  liable for any Obligations of CCEF) or (iii) the ability of
                  the Borrower and its Subsidiaries to enter into transactions
                  that are contemplated by Section 3.1.1(c)(i) through (vii) and
                  permitted under Section 8.2.10.

         SECTION 4. Amendment to Section 8.2.1 (Business Activities). Section
8.2.1 of the Credit Agreement is hereby amended by inserting the following new
sentence at the end thereof: "The Borrower shall not permit any of its Key
Holding Companies, other than Calpine Administrative Services Company, Inc.
(which shall engage only in the business of providing services to the Borrower
and its Subsidiaries), to engage in any business activity except for (i) owning
the capital stock or other similar ownership interests in other Subsidiaries of
the Borrower and (ii) non-operating activities incidental thereto."

         SECTION 5. Amendment to Section 8.2.2 (Indebtedness). Section 8.2.2 of
the Credit Agreement is hereby amended by inserting the following new proviso at
the end thereof: "provided further that the Borrower shall not permit any of its
Key Holding Companies to incur any Indebtedness other than Indebtedness
permitted pursuant to clauses (b), (c), (d)(ii) or (h) above".

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                                                                               3

         SECTION 6. Amendment to Section 8.2.3 (Liens). Section 8.2.3 of the
Credit Agreement is hereby amended by inserting the following new proviso at the
end thereof: "provided further that the Borrower shall not, and shall not permit
any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien
upon the capital stock or other similar ownership interests of any Former
Pledged Entities, other than, with respect to those Former Pledged Entities that
are owners of Facilities and no other material assets, Liens permitted pursuant
to clause (n) above."

         SECTION 7. Amendment to Section 8.2.9 (Consolidation, Merger, etc.).

         (a)      Section 8.2.9(b) of the Credit Agreement is hereby amended by
deleting it in its entirety and substituting in lieu thereof the following new
text:

                  "(b) any Subsidiary may liquidate or dissolve voluntarily
                  into, and may merge with and into, the Borrower or any other
                  Subsidiary, and the assets or stock of any Subsidiary may be
                  purchased or otherwise acquired by the Borrower or any other
                  Subsidiary; provided, however, that if any Subsidiary that is
                  a Pledged Entity shall merge with any other Subsidiary that is
                  not a Pledged Entity, such Pledged Entity shall be the
                  continuing Person following such merger; provided, further,
                  that if any Subsidiary that is a Former Pledged Entity shall
                  merge with any other Subsidiary that is not a Pledged Entity
                  or a Former Pledged Entity, such Former Pledged Entity shall
                  be the continuing Person following such merger; provided,
                  further, that if any Subsidiary that is a Pledged Entity shall
                  liquidate or dissolve voluntarily into, or merge into, the
                  Borrower or any other Subsidiary, or all or substantially all
                  of the assets or stock of any such Subsidiary are purchased or
                  otherwise acquired by the Borrower or any other Subsidiary,
                  such assets of such Subsidiary shall be transferred (whether
                  by means of merger or otherwise) (i) to the Borrower (and
                  pledged by the Borrower as collateral security for the
                  Obligations) or (ii) to another Subsidiary that is a Pledged
                  Entity; and provided, further, that if any Subsidiary that is
                  a Former Pledged Entity shall liquidate or dissolve
                  voluntarily into, or merge into, the Borrower or any other
                  Subsidiary, or all or substantially all of the assets or stock
                  of any such Subsidiary are purchased or otherwise acquired by
                  the Borrower or any other Subsidiary, such assets of such
                  Subsidiary shall be transferred (whether by means of merger or
                  otherwise) (i) to the Borrower (and pledged by the Borrower as
                  collateral security for the Obligations), (ii) to another
                  Subsidiary that is a Pledged Entity or (iii) to another
                  Subsidiary that is a Former Pledged Entity;"

         SECTION 8. Waiver of Section 8.2.9 (Consolidation, Merger, etc.). The
Agent and the Required Lenders hereby waive any violation of the second proviso
to Section 8.2.9(b) of the Credit Agreement occurring as a result of the
transfer of all of the outstanding capital stock or other similar ownership
interests in any Former Pledged Entity to a Pledged Entity pursuant to the
restructuring transactions described in the Restructuring Waiver Request
attached hereto as Annex B (the "Restructuring Waiver Request").

         SECTION 9. Consent to Transfer. Pursuant to Section 10.9(a)(ii), the
Required Lenders hereby consent to the transfer by the Borrower of the capital
stock or other similar ownership

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                                                                               4

interests in each Former Pledged Entity to the respective Pledged Entities
indicated on Annex A hereto.

         SECTION 10. Effectiveness. This Amendment and Waiver shall become
effective upon fulfillment of the following conditions precedent: (a) the
Borrower and each Guarantor shall have delivered to the Agent a duly executed
copy of this Amendment and Waiver; (b) the Agent shall have received duly
executed copies of this Amendment and Waiver from the Required Lenders; (c) the
Borrower shall have complied with the provisions of Section 8.1.9(b) of the
Credit Agreement to the extent that any entity has become a direct Subsidiary of
the Borrower as a result of the restructuring transactions described in the
Restructuring Waiver Request; (d) the Agent shall have received such other
documents as the Agent shall have reasonably requested; and (e) no Default or
Event of Default shall have occurred and be continuing on the date hereof after
giving effect to this Amendment and Waiver; provided, however, that the
amendment hereof to Section 8.1.10 (Ownership Interests) shall not become
effective until the Borrower and its Subsidiaries have completed the
restructuring transactions described in the Restructuring Waiver Request.

         SECTION 11. Representations and Warranties. The Borrower hereby
represents and warrants that the representations and warranties contained in the
Credit Agreement and the Restructuring Waiver Request will be, after giving
effect to this Amendment and Waiver, true and correct in all material respects,
as if made on and as of the date hereof, except for representations and
warranties which speak as of a certain date, which representations and
warranties shall be true and correct in all material respect as of such date.

         SECTION 12. Continuing Effect of Credit Agreement. This Amendment and
Waiver shall not constitute an amendment or waiver of any other provision of the
Credit Agreement or the Loan Documents not expressly referred to herein and
shall not be construed as a waiver or consent to any further or future action on
the part of the Borrower that would require a waiver or consent of the Agent
and/or the Lenders. Except as expressly amended or waived hereby, the provisions
of the Credit Agreement and the Loan Documents are and shall remain in full
force and effect. All references to the Credit Agreement in any other document,
instrument, agreement or writing shall hereafter be deemed to refer to the
Credit Agreement as amended hereby.

         SECTION 13. Counterparts. This Amendment and Waiver may be executed in
counterparts and all of the said counterparts taken together shall be deemed to
constitute one and the same instrument. Delivery of an executed signature page
of this Amendment and Waiver by facsimile transmission shall be effective as
delivery of a manually executed counterpart hereof.

         SECTION 14. Governing Law. THIS AMENDMENT AND WAIVER SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.

         SECTION 15. Expenses. The Borrower agrees to pay or reimburse the Agent
for all of its out-of-pocket costs and expenses incurred in connection with the
preparation, negotiation and execution of this Amendment and Waiver, including
the fees and disbursements of counsel to the Agent.

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                                                                               5

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment and
Waiver to be duly executed by their respective officers thereunto duly
authorized as of the day and year first above written.

                               CALPINE CORPORATION

                               By:    /s/ MICHAEL THOMAS
                                    --------------------------------------------
                                     Name:  Michael Thomas
                                     Title:  SVP & Corporate Treasurer

The undersigned Guarantors hereby consent and agree to the foregoing Fifth
Amendment and Waiver and agree that their Guarantee as set forth in the Security
Agreement remains in full force and effect:

QUINTANA MINERALS (USA), INC.

By: MICHAEL THOMAS
    ----------------
Name: Michael Thomas
Title: SVP

JOQ CANADA, INC.

By: MICHAEL THOMAS
    ----------------
Name: Michael Thomas
Title: SVP

QUINTANA CANADA HOLDINGS, LLC

By: MICHAEL THOMAS
    -----------------
Name: Michael Thomas
Title: SVP

<PAGE>

                               THE BANK OF NOVA SCOTIA,
                               as Agent

                               By:    /s/ JAMES R. TRIMBLE
                                    --------------------------------------------
                                     Name:  James R. Trimble
                                     Title:  Managing Director

<PAGE>

                               BAYERISCHE LANDESBANK, CAYMAN ISLANDS BRANCH

                               By:  /s/ OLIVER HILDENBRAND
                                    --------------------------------------------
                                    Name:  Oliver Hildenbrand
                                    Title: Vice President

                               By:  /s/ CHRISTOPHER STOLARSKI
                                    --------------------------------------------
                                    Name:  Christopher Stolarski
                                    Title: Vice President

<PAGE>

                               GALLATIN FUNDING LTD.

                               By: Bear Stearns Asset Management Inc.
                               as its Collateral Manager

                               By:    /s/ JONATHAN BERG
                                    --------------------------------------------
                                    Name:  Jonathan Berg
                                    Title:  Vice President

<PAGE>

                               ING CAPITAL LLC

                               By:  /s/ ERWIN THOMET
                                    --------------------------------------------
                                    Name:  Erwin Thomet
                                    Title: Managing Director

                               By:  /s/ G.D. BELLAMY, JR.
                                    --------------------------------------------
                                    Name:  G. D. Bellamy, Jr.
                                    Title: Director

<PAGE>

                               PROTECTIVE LIFE INS. CO.

                               By:    /s/ DIANE S. GRISWOLD
                                    --------------------------------------------
                                    Name:  Diane S. Griswold
                                    Title:  AVP

<PAGE>

                           SEABOARD CLO 2000 LTD.

                               By:     /s/ JOHN W. STELWAGON, CFA
                                    --------------------------------------------
                                    Name:  John W. Stelwagon, CFA
                                    Title:  Managing Director

<PAGE>

                           TORONTO DOMINION (TEXAS), INC.

                               By:    /s/ LYNN CHASIN
                                    --------------------------------------------
                                    Name:  Lynn Chasin
                                    Title:  Vice President

<PAGE>

                           UNION BANK OF CALIFORNIA, N.A.

                               By:    /s/ KAREN ELLIOTT
                                    --------------------------------------------
                                    Name:  Karen Elliott
                                    Title:  Assistant Vice President

<PAGE>

                                                                         Annex A

Current First Tier Entities and their new holding company after the restructure:

<TABLE>
<CAPTION>
             CURRENT FIRST TIER                               NEW HOLDING COMPANY
---------------------------------------------     -------------------------------------------
<S>                                               <C>
Anacapa Land Company LLC                          Calpine Power Company
Anderson Springs Energy Company                   Calpine Power Company

Androscoggin Energy, Inc.                         Not Applicable / Not Moving
Bellingham Cogen, Inc.                            Calpine Power Company
Blue Heron Energy Center, LLC                     Calpine Power Company
Calpine Agnews, Inc.                              Calpine Power Company
Calpine Auburndale Holdings, LLC                  Calpine Power Company

Calpine c*Power, Inc.                             Calpine Administrative Services Company,
                                                  Inc.
Calpine California Holdings, Inc.                 Calpine Power Company
Calpine Calistoga Holdings, LLC                   Merged out as part of new Geysers
                                                  Structure
Calpine CCFC II Holdings, Inc.                    Calpine Power Company
Calpine Central, Inc.                             Calpine Power Company
Calpine Northbrook Corporation of Maine, Inc.     Not Applicable / Not Moving
Calpine Northeast Marketing, Inc.                 Entity renamed Calpine Energy Holdings,
                                                  Inc. - remains a first tier subsidiary
Calpine Operating Management Company, Inc.        Not Applicable / Not Moving
Calpine Pittsburgh, LLC                           Calpine Power Company
Calpine Power Company                             Not Applicable / Not Moving
Calpine Project Holdings, Inc.                    Calpine Power Company

Calpine Rumford I, Inc.                           Calpine Power Company
Calpine Rumford, Inc.                             Calpine Power Company
Calpine Sonoma, Inc.                              Merged out as part of new Geysers
                                                  Structure
Calpine Sonoran Pipeline LLC                      Calpine Fuels Corporation
Calpine Sumas, Inc.                               Calpine Power Company
Calpine Thermal Power, Inc.                       Merged out as part of new Geysers Structure
Calpine Tiverton I, Inc.                          Calpine Power Company
Calpine Tiverton, Inc.                            Calpine Power Company
Calpine Vapor, Inc.                               Calpine Power Company
Chippokes Energy Center, LLC                      Calpine Power Company
Calpine Dighton, Inc.                             Calpine Power Company
Calpine Eastern Corporation                       Calpine Power Company
Calpine Eastern Holdings, Inc.                    Calpine Operating Services Company, Inc.,
                                                  which is a subsidiary of Calpine Operating
                                                  Management Company, Inc.
Calpine Fuels Corporation                         Not Applicable / Not Moving
Calpine Gilroy 1, Inc.                            Calpine Power Company
</TABLE>

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                                                                               3

<TABLE>
<S>                                               <C>
Calpine Gilroy 2, Inc.                            Calpine Power Company
Calpine Gordonsville, Inc.                        Sold
Calpine King City, Inc.                           Calpine Power Company
Calpine Marketing, LLC                            Calpine Power Company
Calpine Metcalf EPC, Inc.                         Merged into Calpine Development
                                                  Holdings, Inc.
Calpine Natural Gas Holdings, LLC                 Calpine Fuels Corporation
Calpine Natural Gas GP, LLC                       Calpine Fuels Corporation
CPN Blue Spruce Holdings, LLC                     Merged into Calpine Development
                                                  Holdings, Inc.
CPN Cascade, Inc.                                 Calpine Power Company
CPN Energy Services GP, Inc.                      Calpine Energy Holdings, Inc.
CPN Energy Services LP, Inc.                      Calpine Energy Holdings, Inc.
CPN Pipeline Company                              Calpine Fuels Corporation
CPN Telephone Flat, Inc.                          Calpine Power Company
GATX/Calpine-Agnews, Inc.                         Merged as part of Agnews Restructure into
                                                  Calpine Agnews, Inc.
Geysers Finance Company                           Merged out as part of new Geysers
                                                  Structure
Los Esteros Critical Energy Facility, LLC         Calpine Power Company
Modoc Power, Inc.                                 Calpine Power Company
Northwest Cogeneration, Inc.                      Calpine Power Company
Palmetto Energy Center, LLC                       Calpine Power Company
Santa Rosa Energy Company                         Merged out as part of new Geysers
                                                  Structure
Sutter Dryers, Inc.                               Calpine Power Company
Venture Acquisition Company                       Calpine Power Company
WRMS Engineering, Inc.                            Sold
</TABLE>

ENTITIES MOVING CLOSER TO CALPINE CORPORATION AS PART OF RESTRUCTURE:

Geysers Power Company, LLC - See attached chart for restructuring details

Calpine Calgary, Inc. (to be renamed Calpine International Holdings, Inc. ) -
See attached chart for restructuring details

Silverado Geothermal Resources, Inc.

Dighton Power Associates, LP

Nissequogue Cogen Partners

TBG Cogen Partners

<PAGE>

                                                                               4

KIAC Partners

Calpine Agnews, Inc.

<PAGE>

                                  [FLOW CHART]EXHIBIT 10.1.2.8

December 31, 2003

To:   Lenders under the Calpine Corporation Credit Agreement

From: Calpine Corporation

Re:   Technical Correction to Fifth Amendment and Waiver Request Concerning
      Proposed Restructuring Organizational Changes (the "Fifth Amendment and
      Waiver")

Ladies and Gentlemen:

It has come to our attention that a technical correction needs to be made to the
Fifth Amendment and Waiver request dated as of or about December 16, 2003.

Background:

As you know, the proposed organizational changes involved, among other things,
contribution of many existing first tier subsidiaries to one of seven Key
Holding Companies (as defined in the Fifth Amendment and Waiver). It was
intended that Calpine Development Holdings, Inc. be one of such entities.
Calpine Development Holdings, Inc. is an owner of certain early stage
development projects.

While the graphical post-restructuring organizational chart provided to the
Lenders reflected the movement of Calpine Development Holdings, Inc. from being
a first tier subsidiary to being a lower tier subsidiary, such entity was left
off of Annex A to the Fifth Amendment and Waiver, which contains a list of
Former Pledged Entities (as defined in the Fifth Amendment and Waiver).

Accordingly, Annex A to the Fifth Amendment and Waiver will need to be amended
to include Calpine Development Holdings, Inc. as one of the Former Pledged
Entities, whereby its new holding company will be Calpine Power Company.

Amendment: With the approval of the Required Lenders, Annex A to the Fifth
Amendment and Waiver will be deemed amended to (i) add "Calpine Development
Holdings, Inc." at the end of the list of entities under the heading "Current
First Tier", and (ii) add "Calpine Power Company" at the end of the list of
entities under the heading "New Holding Company", as follows:

                                        1
<PAGE>

                                    NEW HOLDING COMPANY
                                    ---------------------
Calpine Development Holdings, Inc.  Calpine Power Company

The remainder of Annex A will not be modified.

Please provide your institution's acknowledgment and approval to this Technical
Correction at your earliest opportunity by sending an e-mail reading as set
forth below to Isabel Abella of Scotia Capital at
isabel_abella@scotiacapital.com, reaffirming your institution's execution of the
Fifth Amendment and Waiver, as amended by this Technical Correction, by 5:00
p.m. (Eastern Time), Friday, January 9, 2004:

                  "The undersigned Lender to Calpine Corporation (the
         "Borrower") hereby (a) acknowledges and approves the Technical
         Correction to Fifth Amendment and Waiver (the "Fifth Amendment")
         Concerning Proposed Restructuring Organizational changes as set forth
         in the letter of the Borrower dated December 31, 2003 posted on
         Intralinks and (b) reaffirms its execution of the Fifth Amendment.

Should you have any questions, please feel free to contact me at 408-792-1107,
Dan Yuen, Associate Counsel of Calpine Corporation at 408-794-2509 or Alok Garg
of Scotia Capital at 212-225-5463.

Thank you for your cooperation with this request.

Sincerely,

CALPINE CORPORATION

/s/ MICHAEL THOMAS
---------------------------------------
Michael Thomas

Senior Vice President and Treasurer

                                        2

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