UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K

                CURRENT REPORT Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934


      Date of Report (Date of earliest event reported): January 20, 2005


                               CALPINE CORPORATION
                            (A Delaware Corporation)

                        Commission file number: 001-12079

                  I.R.S. Employer Identification No. 77-0212977

                           50 West San Fernando Street
                           San Jose, California 95113
                            Telephone: (408) 995-5115

     Check the  appropriate  box below if the Form 8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

     [ ]  Written communications pursuant to Rule 425 under the Securities Act
          (17 CFR 230.425)

     [ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
          (17 CFR 240.14a-12)

     [ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
          Exchange Act (17 CFR 240.14d-2(b))

     [ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
          Exchange Act (17 CFR 240.13e-4(c))




ITEM 8.01 -- OTHER EVENTS.


NEWS RELEASE

                                                        CONTACTS: (408) 995-5115
                                    Media Relations:  Bill Highlander, Ext. 1244
                                    Investor Relations:  Rick Barraza, Ext. 1125


            Calpine Commences $260 Million Preferred Equity Offering
             Relating to Subsidiary Owning its Saltend Energy Centre

     (SAN JOSE,  Calif.)  /PR  Newswire - First  Call/ Jan.  20,  2005 - Calpine
Corporation  [NYSE:CPN]  today announced that Calpine  European Funding (Jersey)
Limited,  a new,  wholly  owned  subsidiary  of Calpine,  intends to commence an
offering of $260  million of  Redeemable  Preferred  Shares that will be due 180
days after issuance.  This financing is a part of Calpine's  recently  announced
plans  to  evaluate  strategic  financial  alternatives  for its  1,200-megawatt
Saltend Energy Centre, including the potential sale of this facility.

     The proceeds  from the  offering of the  Redeemable  Preferred  Shares will
initially  be loaned to a  holding  company,  which  indirectly  owns  Calpine's
Saltend  cogeneration  power plant.  The net proceeds  from this  offering  will
ultimately be used as permitted by Calpine's existing bond indentures.

     Net proceeds  from any sale of the  facility  would be used to first redeem
the existing $360 million, two-year redeemable preferred shares. And, second, to
redeem the $260 million Redeemable  Preferred Shares with the remaining proceeds
to be used in accordance  with the asset sale  provisions of Calpine's  existing
bond indentures.

     The  Redeemable  Preferred  Shares  have  not  been  registered  under  the
Securities  Act of 1933,  and may not be  offered in the  United  States  absent
registration  or an applicable  exemption from  registration  requirements.  The
Redeemable Preferred Shares will be offered in a private placement in the United
States under  Regulation D under the  Securities  Act of 1933 and outside of the
United States  pursuant to Regulation S under the Securities  Act of 1933.  This
press release shall not  constitute an offer to sell or the  solicitation  of an
offer to buy.  Securities laws applicable to private placements limit the extent
of information that can be provided at this time.





                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                  CALPINE CORPORATION

                                  By:  /s/ Charles B. Clark, Jr.
                                       ------------------------------------
                                       Charles B. Clark, Jr.
                                       Senior Vice President and Controller
                                       Chief Accounting Officer

Date: January 21, 2005