Calpine plans to build plant across the Bay

Although coming in the midst of a major energy shortage in the state, the timing of the announcement is just coincidental, Calpine officials said.

"Certainly, Calpine recognizes the need for additional generation

in California," spokeswoman Katherine Potter said this morning. "This is just a new step in a major power program that we've launched in California."

Based in San Jose, Calpine Corporation says it is dedicated to providing customers with reliable and competitively priced electricity. Calpine is focused on clean, efficient combined-cycle, natural gas-fired generation and is the nation's largest producer of renewable geothermal energy.

"The East Altamont facility would be ideally situated to safely deliver clean, affordable and reliable power into energy gateways serving the Central Valley and other regional energy markets," according to Calpine officials. The proposed $550 million project would be located on a 50-acre site in the northeastern corner of Alameda County, adjacent to the

Western Area Power Administration's electrical substation -- from which power is distributed to Northern California, including San Joaquin, Alameda and Contra Costa counties.

Jerry Toenyes, Sierra Nevada Regional Manager of Western, said, "California needs additional generating facilities and the proposed site for the East Altamont Energy Center is well suited to improve electric system reliability as well as provide much needed generation."

Calpine's proposed facility is situated in an area dominated by major regional high voltage transmission lines. "It's a good site in that there's already a major energy distribution center there, (as well as ) high-voltage lines for the area," Potter said. "There's also access to a major gas supply since PG&E has a major backbone supply nearby."

Locating an appropriate site is the first step in a long public process, she said. Before the facility is approved, it will go through a rigorous technical and environmental review process led by the California Energy Commission in Sacramento and in Alameda County. Calpine would begin construction in June 2002.

"We're excited by the potential of the East Altamont site," according to John King, Calpine's Vice President for Business Development. "Building upon existing infrastructure in the region, and coupled with a truly safe, environmentally advanced and modern design, the East Altamont Energy Center will bring clean, reliable and much needed energy to Alameda County, the Central Valley and other major northern California energy markets."

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