Calpine betting state needs juice

SFGate ^ | 09/05/2004 | David R Baker

[daviddennis]

Tucked against a dry San Jose hillside, Calpine Corp.'s next power plant is a $500 million leap of faith.

Workers swarm through the plant's five-story metal skeleton, the shriek of power tools piercing the air, as they work for completion next spring. Yet no customers have even agreed to buy the plant's electricity.

[daviddennis]

Interesting article on Calpine - what are your thoughts?

D

[Boundless]

So is this a geothermal plant?

The article didn't say, and I have to wonder if they
"carelessly omitted" that in order to avoid giving
Calpine any credits with the tree-huggers.

Anyway, CA needs the power, and the major risk to
Calpine is CA Democrats trying to "nationalize" it
or otherwise prevent the market from working.

[Dog Gone]

This plant is a natural gas plant, not geothermal. This plant was very controversial, but finally got approved after Gray Davis publicly backed it. As far as I know, it's the last plant in the works for California as most other companies have become fed up with the permitting process and operating regulations.

Calpine will undoubtedly make money on the plant simply because California will require increasing amounts of power every year, and suppliers are not rushing into the state to build.

Calpine donates to Democrats, which has been very helpful to them in California.

[marron]

Yes, Calpine was one of Davis's biggest donors.

[WWTraveler]

It is a combine cycle plant. The simple explanation is a jet engine turns one generator and the exhaust from the jet engine is used to make steam to turn another generator. Very efficient, cheap and easily and quickly built. The downside is that they are only good for about 20 years.

[Boundless]

> It is a combined cycle plant.

Yep. I have a relative who works for Calpine.

I just figured that the omission of prime-mover type
was not just journalistic incompetence.