Exhibit 99



COMPANY PRESS RELEASE

          Brooklyn Union Agrees to Sell Gas Energy Inc.


Brooklyn Union today announced that it had reached a definitive
agreement to sell the stock of Gas Energy Inc. and Gas Energy
Cogeneration Inc. to Calpine Corporation(NYSE:CPN).

Gas Energy Inc. and Gas Energy Cogeneration Inc., wholly owned
subsidiaries of the Brooklyn Union Gas Company (NYSE:BU), develop,
finance, own, and operate natural gas-fired cogeneration
facilities.  The sale includes four plants with a combined capacity
of 388 megawatts.  These plants are located at Lockport, N.Y.; the
State University of New York at Stony Brook, Long Island; John F.
Kennedy International Airport; and the Northrop Grumman plant in
Bethpage, Long Island.  The sale also includes interests in three
fuel-management subsidiaries.

Brooklyn Union will retain its interests in GEI operations in
Israel, Mexico and Central Europe.

The sale is expected to be completed in early fall.

"Brooklyn Union is proud of its success in developing profitable
cogeneration and fuel management projects over the past ten years. 
At this time, we believe market conditions have enabled us to
maximize values for our shareholders," said Robert B. Catell,
chairman and chief executive officer of Brooklyn Union.  "We will
continue to strengthen our gas exploration and production
activities and to pursue growth opportunities in the energy and
power development fields both domestically and internationally."

Based in San Jose, California, Calpine currently has ownership
interests in 17 power generation facilities and steam fields having
an aggregate capacity of approximately 1,800 megawatts.

Brooklyn Union is a diversified energy company that provides
natural gas service to 1.1 million customers in the New York City
boroughs of Brooklyn, Queens and Staten Island.  The company's
subsidiaries participate and own investments in gas exploration,
production, marketing and cogeneration in the United States, as
well as energy-related investments abroad.  For more information,
visit Brooklyn Union's web site at http://www.bug.com.

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