WAIVER AGREEMENT

                                                                Exhibit 10.2.1.7

                                WAIVER AGREEMENT


             THIS WAIVER AGREEMENT (this  "Agreement") is entered into as of the
9th day of June, 2006, by and among CALPINE CONSTRUCTION FINANCE COMPANY,  L.P.,
a Delaware  limited  partnership (the  "Borrower"),  CALPINE  HERMISTON,  LLC, a
Delaware  limited  liability  company  ("Calpine  LLC"),  CPN HERMISTON,  LLC, a
Delaware limited liability company ("CPN LLC"), and HERMISTON POWER PARTNERSHIP,
an Oregon general  partnership (the "Hermiston  Partnership"  and, together with
Calpine  LLC and CPN LLC,  the  "Guarantors"),  the  lenders  party  hereto (the
"Lenders"),  and GOLDMAN SACHS CREDIT  PARTNERS  L.P., as  administrative  agent
(together with its successors in such capacity, the "Administrative Agent").

                                    RECITALS

             WHEREAS,   the  Borrower,   the   Guarantors,   the  Lenders,   the
Administrative  Agent  and the Sole  Lead  Arranger  entered  into a Credit  and
Guarantee  Agreement,  dated as of August 14, 2003 (as amended on September  12,
2003, January 13, 2004, March 5, 2004, and March 15, 2006, and as may be further
amended  from  time to time,  the  "Credit  Agreement"),  pursuant  to which the
Borrower borrowed, on a non-recourse basis as described in the Credit Agreement,
$385,000,000  in aggregate  principal  amount of First  Priority  Senior Secured
Institutional Term Loans due 2009 (the "Term Loans");

             WHEREAS, on December 20, 2005, Calpine Corporation  ("Calpine") and
certain  of  its  controlled  subsidiaries,  including,  among  others,  Calpine
Operating  Services  Company,  Inc. and Calpine Energy Services,  L.P.  ("CES"),
filed a voluntary  proceeding  for relief under  Chapter 11 of the United States
Bankruptcy  Code  with the  United  States  Bankruptcy  Court  for the  Southern
District of New York (the "Proceeding");

             WHEREAS,   CES,  the   Borrower  and  certain  of  the   Borrower's
subsidiaries  are  parties  to the  Index  Based  Gas  Sale and  Power  Purchase
Agreement dated as of August 14, 2003, as amended (the "PPA"), pursuant to which
the Borrower purchases natural gas from CES for its power generating facilities,
and CES purchases power generated by the facilities from the Borrower;

             WHEREAS,  on  November  1,  2005,  as  permitted  under the  Credit
Agreement,  the Borrower used net proceeds of approximately  $212.0 million from
the sale of one of its  facilities to make a prepayment to CES for gas under the
PPA (the "Gas Prepay Transaction");

             WHEREAS,  ordinarily under the PPA, the cost of gas consumed by the
Borrower's  facilities  is offset  against  the cost of power  generated  by the
facilities,  with CES paying the Borrower only the net amount due, such payments
generally being made on the 25th of each month for services  provided during the
prior month; however, due to the Gas Prepay Transaction, CES was obligated for a
period of time to pay the full cost for the power under the PPA, without offset,
which  resulted in larger than usual  payments  owing to the Borrower  under the
PPA;


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             WHEREAS,  CES failed to timely make a number of  payments  owing to
the  Borrower  under the PPA,  including  in  respect of gas  deliveries  during
February 2006, approximately $18.5 million due on March 27, 2006 (the "March PPA
Payment" );

             WHEREAS,  the  failure by CES to timely  make the March PPA Payment
constitutes  an Event of Default  under the  Credit  Agreement  (the  "March PPA
Payment Default");

             WHEREAS, the Borrower has failed to timely provide to the Lenders a
financial report for the periods ended December 31, 2005 and March 31, 2006 (the
"Financial  Reports")  as required  to be  provided to them  pursuant to Section
5.01(a) of the Credit Agreement;

             WHEREAS,  the  failure  by  the  Borrower  to  timely  provide  the
Financial Reports  constitutes a Default (the "Reporting Default, " and together
with the March PPA Payment Default, the "Specified Defaults");

             WHEREAS, pursuant to a waiver request, commenced as of June 6, 2006
and completed as of June 9, 2006 (the "Waiver Request"),  the Borrower has asked
the Lenders to waive the Specified Defaults; and

             WHEREAS,  the Lenders,  on the terms and subject to the  conditions
hereinafter provided, are willing to waive the Specified Defaults.

             NOW  THEREFORE,  in  consideration  of the  premises and the mutual
agreements  set  forth,   the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the parties hereto hereby agree as follows:

             1. Definitions.  Unless otherwise defined herein, capitalized terms
used herein that are not  otherwise  defined  herein  shall have the  respective
meanings assigned to such terms in the Credit Agreement

             2. Waiver.

                (a)  Upon  satisfaction of the conditions set forth in Section 3
of this  Agreement,  the  Lenders,  pursuant to the terms of Section 7.04 of the
Credit  Agreement,  hereby waive  application of Sections 7.01(d) and 7.01(i) of
the Credit  Agreement  (the  "Waiver")  solely to the extent  applicable  to the
Specified  Defaults,  such Waiver being  effective on the first date that all of
the