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San Jose Merchant Plant Recommended by California Panel

10/12/2000

LCG, Oct. 12, 2000A siting committee of the California energy Commission has recommended approval of the Metcalf Energy Center power plant that Calpine Corp. and Bechtel Enterprises Inc. want to build in an industrial section of San Jose.

The panel voiced misgivings about the project, chiefly because of its proximity to residential areas, but concluded that its benefits "would be substantial." The approval was granted because the plant "would enhance the reliability of an imperiled electric system."

The plant will, if it gains final approval from the Energy Commission and the City of San Jose, be built on a 20 acre site in an area that has, because of low land values, been developed for low cost housing.

Because of its proximity to residential areas, San Jose Mayor Ron Gonzales and others have opposed construction of the plant.

San Jose bills itself as the "Capital of Silicon Valley." Recent estimates place the growth of electricity demand in Silicon Valley at 10 megawatts per day. That means Silicon Valley will need a new power plant the size of the Metcalf Energy Center every two months.