For immediate release: May 16, 2001
Media Contact: MaryAnn Costamagna -- (916) 654-4989

Energy Commission Staff Recommends Approval of Proposed Gilroy Peaker Power Plant Project

Sacramento - The California Energy Commission's staff has recommended approval of the Gilroy City LM6000 Project, a summer reliability power plant proposed for Santa Clara County. The Staff Assessment of the proposed project can be viewed and printed from the Energy Commission's Web Site located at:

Not a final decision, the report contains the Energy Commission staff's independent analysis of the Gilroy City LM6000 Project proposed by Calpine Corporation. The 135-megawatt power plant, consisting of three model LM6000 45-megawatt turbine generators, would be constructed and operated next to Calpine's existing co-generation power plant at Gilroy Foods in the City of Gilroy.

The plant should be producing electricity no later than September 30, 2001. Calpine Corporation has guaranteed the annual sale of 2,000 hours of generation from the peaker project under contract to the California Department of Water Resources.

Governor Davis directed the Energy Commission to use its emergency power plant permitting authority to license new peaking and renewable power plants that can be on-line by September 30, 2001. Typically, peaker power plants are simple-cycle generators that can be constructed in a relatively short period of time, and readily connected to the existing electricity transmission and natural gas system, and dispatched quickly to meet peak electricity demands.

A site tour and informational hearing was held on the proposed project on May 10, 2001. To meet the expedited review process schedule, Energy Commissioner Robert Laurie will issue a Proposed Decision on the Gilroy City Energy Project on May 18, 2001. This document will be available on the Energy Commission's Web Site.

The full five-member Energy Commission will consider approving the Proposed Decision at a special business meeting on this date:

Beginning at 1 p.m.
California Energy Commission
1516 Ninth Street, Hearing Room A
Sacramento, CA
(Wheelchair Accessible)

Members of the public may participate in the licensing process in a variety of ways. Persons who need information concerning public participation, please contact Roberta Mendonca, the Energy Commission's Public Adviser, at (916) 654-4489, toll free in California at (800) 822-6228 or by e-mail at

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