Governor's Seal
OFFICE OF THE GOVERNOR


PR01:237

FOR IMMEDIATE RELEASE
May 21, 2001
 

CONTACT:
916/445-4571

GOVERNOR DAVIS ANNOUNCES LICENSING OF
GILROY "SUMMER PEAKER" POWER PROJECT



SACRAMENTO -- Governor Gray Davis today announced the licensing of the eighth summer reliability power plant to be permitted under the California Energy Commission's expedited emergency review process.

"Today's licensing of the Gilroy City Project in Santa Clara County is the direct result of the Emergency Executive Orders I signed earlier this year," Governor Davis said. "Because of these orders, the Energy Commission has been able to cut the licensing process to as little as 19 days. We've been licensing a power plant nearly every week to help get much-needed new generation on-line for this summer."

As proposed by Calpine Corporation, the 135-megawatt Gilroy City Project will consist of three 45-megawatt turbine generators and will 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 permit new "peaker" or simple cycle and renewable power plants that can be on-line by September 30, 2001. These are electrical generation plants that can be constructed in a relatively small area and readily connected to an existing electricity transmission and natural gas system.

The Energy Commission has licensed eight simple-cycle power plants that will add 636 megawatts to the grid this summer. Also in the Energy Commission's licensing process are the following summer reliability power projects:


GOVERNOR GRAY DAVIS   -   SACRAMENTO, CALIFORNIA 95814    -     (916) 445-4571