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Calpine to Build 1,030 Megawatt Michigan Plant

5/16/2001

LCG, may 16, 2001Calpine Corp. said yesterday it will build a 1,030 megawatt natural gas-fueled, combined-cycle power plant in Berrien, Mich., the California company's first plant in Michigan.

Calpine said it expects to invest more than $500 million in the Berrien Energy Center, which is scheduled to begin commercial operation in 2004. Development rights for the plant were acquired from CME North American Merchant Energy, a Boston-based developer of merchant power projects.

CME did the "up front" work on two Calpine power projects in Ohio, according to spokesman John Flumerfelt. With the two Ohio plants, Berrien will give Calpine three projects in the East Central Area power market.

"It's a very large market and we think there's an opportunity there," Flumerfelt said, noting that much of the generation in the area is provided by aging coal-fired plants that are increasingly under attack by environmentalists.

Calpine senior vice president Bob Alff said the Berrien site "offers excellent access to high-capacity electric transmission and a variety of options for natural gas transportation, which will help us optimize both power sales opportunities and cost-effective fuel procurement."

Flumerfelt said Calpine expects to have all the necessary permits in hand next year.