California: Power plant gains energy panel approval (HAYWARD FACILITY 600 MEGAWATTS)

The San Jose Mercury News ^ | Thu, Sep. 12, 2002 | Matthai Chakko Kuruvila

[Ernest_at_the_Beach]

The California Energy Commission approved the license Wednesday for a Hayward power plant, clearing its most significant hurdle before construction.

Hayward officials and Calpine initially sought to build the plant at the height of the last year's energy crisis. City, state and Calpine officials said that the 600-megawatt Russell City plant would stabilize the Bay Area's power needs, providing power to up to 600,000 homes.

[Ernest_at_the_Beach]

Calpowercrisis:

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[snopercod]

In return for building the plant, Hayward will receive an array of benefits from Calpine. Most notably, Calpine agreed to contribute $15 million toward the construction of a new library, said City Manager Jesus Armas.

This confirms that Kali is now truly a third-world country, where you have to bribe local officials to get anything done.

[alfa6]

Actually snopercod I was thinking along the lines of extrotion.

Regards

alfa6 ;>}

[gaspar]

Hayward is a dump. The town has paved over some of the richest farm land on earth and in return has fostered an unspeakable urban blight. Cal State-Hayward is up on the hills behind Hayward, but it reflects the Hayward malaise. It too is a dump.

[Dog Gone]

Calpine says they aren't going to build this plant.

Calpine Won't Build California Plant Without Power Deal
Wednesday September 11, 9:03 pm ET

By Jessica Berthold

Dow Jones Newswires

LOS ANGELES -- Calpine Corp. (NYSE:CPN - News) won't build the just-approved 600-megawatt Russell City Energy Center without a power contract, despite an immediate need for more supply in the San Francisco Bay Area, a company spokesman said Wednesday.

The plant, which the state energy commission approved for construction 25 miles south of San Francisco in Hayward, was dubbed "necessary" to improve regional energy reliability by Gov. Gray Davis Wednesday. Calpine agreed, but a long run of low wholesale electricity prices has made the company cautious about new construction, said Calpine spokesman Kent Robertson.

"We're not moving into new construction of plants without power purchasing contracts. Russell City is no different," Mr. Robertson said. "Current market conditions are an obstacle to construction at this time."

The company said earlier this year that it would delay construction of about three dozen plants nationwide in an effort to reduce spending and debt levels, and in light of a bearish power market. Market and economic conditions haven't changed much since then, Robertson said.

The energy commission, and Davis, pegged the $300 million-$400 million project's construction start date at spring 2003, with an operational date of summer 2005, but Calpine was less sanguine.

"I can't authoritatively say we will begin construction in six months," Mr. Robertson said.

Engaged In Talks On Contract

Calpine has been talking with utilities, municipalities and agencies in Northern California about a contract, Mr. Robertson said. PG&E Corp. (PCG) utility Pacific Gas & Electric would be an obvious counterparty, but their Chapter 11 status complicates matters, Mr. Robertson said.

"I can't really name names, but obviously the Pacific Gas & Electric situation makes things more difficult because they are the main utility in the area," Mr. Robertson said.

Pacific Gas & Electric filed for Chapter 11 bankruptcy protection last year, and any contracts it brokered would need to be approved by a federal bankruptcy judge.

One encouraging development, Mr. Robertson said, is a recent decision by the California Public Utilities Commission to allow the state's two insolvent investor-owned utilities to enter into contracts of up to five years in length. Such deals would be backed by the state Department of Water Resources because the utilities aren't creditworthy.

"The PUC decision was viewed as a positive step in our eyes," Mr. Robertson said.

As reported, Calpine said Tuesday it had sold $260 million of the $650 million in assets it wants to unload in 2002 to generate cash and strengthen its balance sheet. Struggling under $13.2 billion in debt, the company has been hit especially hard by low power prices given Calpine's heavy concentration of unregulated assets.

[Ernest_at_the_Beach]

Looks like the worm has turned!

Now Calpine is saying , we aren't gonna do this unless we can get a solid contract.

That means they want a contract with someone other than the State Government ! HAHA!!