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For Immediate Release: September 22, 2006
Media Contact: Susanne Garfield-Jones - 916-654-4989

Los Esteros Critical Energy Facility
Recommended for Licensing Approval

Sacramento -A committee of the California Energy Commission today recommended approval of a license to convert the existing Los Esteros Critical Energy Facility II from a 180-megawatt (MW) simple-cycle power plant to a 320-MW combined cycle operation. The recommendation of the committee - Commission Chairman Jackalyne Pfannenstiel, Presiding Member, and Commissioner John L. Geesman, Associate Member - would override the city of San Jose's zoning designation for the 21-acre site.

The Revised Presiding Member's Proposed Decision (PMPD) will be presented at the Energy Commission's regularly scheduled business meeting at 10 a.m. Wednesday, October 11, in the Commission's Hearing Room A, 1516 Ninth Street, Sacramento.

In the October 2005 PMPD, the Committee noted that the city of San Jose had not made zoning changes required for the project. As a result, the lack of appropriate zoning prevented the Committee from recommending that the license for Phase 2 be granted.

Commission staff has met and consulted with the city on multiple occasions in an effort to correct or eliminate the project's nonconformity with the city's zoning designation. However, staff's efforts were not successful, and on May 26, 2006, staff filed a motion to override the noncompliance (override motion). Other parties in the case and the city of San Jose filed responses to the override motion, and on June 28, 2006, the Committee held a hearing to take additional evidence and hear argument.

Calpine Corp. plans to operate the power plant 24 hours a day, except as required for planned maintenance. The plant is located at 800 Thomas Foon Chew Way in San Jose. More information about the project is available at the Energy Commission website at: http://www.energy.ca.gov/sitingcases/losesteros2/index.html

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