[California Energy Commission Letterhead]


Energy Resources
Conservation and Development Commission


Docket No. 01-AFC-12


On August 6, 2001 Calpine c* Power (Applicant) filed an Application for Certification (AFC) with the California Energy Commission, for its proposed Los Esteros Critical Energy Facility (LECEF, or project). The LECEF will be located in north San Jose, California. The applicant is seeking to construct and operate a 180 megawatt (MW) natural gas-fired, simple-cycle electric generating facility. The project will be owned and operated by Calpine c* Power.

The proposed project would be located on 15 acres of a 55 acre tract of land owned by the applicant at 1515 Alviso-Milpitas Road. This location is on the North side of State Route 237, bounded on the west by Zanker Road and on the east by the Coyote Creek flood control channel. The LECEF will be constructed in phases in order to bring power to the California electricity market as quickly as possible. The LECEF Phase II (LECEFII) will modify the project for combined cycle operation as required by Public Resources Code section 25552. Detailed facility information and project application material for LECEF-II will be provided in a separate submittal to the Energy Commission and other regulatory agencies at a later date.

Schedule. The project is proposed to be operational in a simple-cycle mode for the spring of 2002. Phase II combined cycle operation is planned to be initiated following construction of the Phase I.

Facility Operation. The proposed LECEF-I would consist of four natural gas-fired, General Electric LM6000 combustion turbine generators (CTGs) operating in simplecycle mode. The inlet air for the CTG's will be cooled and compressed prior to delivery into the turbines. Each CTG will be equipped with SPRINT (water evaporative spray inter-cooling betweeen the low and high pressure compressors). In addition the hot gas exhaust systems will use selective catalytic reduction (SCR) with aqueous ammonia injection as a catalyst. These systems will serve to control NOx air emissions to 5ppm.

Electricity Market. The proposed LECEF would be constructed and operated as a source of reliable power for a proposed US DataPort server farm, and as a "merchant plant", supplying excess capacity and energy to California's restructured electric market. The applicant has a contract with the California Department of Water Resources (DWR) for that purpose.

Distribution. Electricity generated by the LECEF will be delivered to the existing PG&E transmission system at either the planned Los Esteros Substation to be located adjacent to the project, or to either of two alternate connections. One is a new line being constructed by PG&E to the corner of Zanker Road and State Route 237. A second alternative is via advance-construction of a line from the existing Montague-Los Esteros substation to the proposed, PUC approved, new location for the Los Esteros substation.

Fuel. Natural gas will be the only fuel utilized by the four new CTGs. Natural gas will be supplied to the CTGs via two existing pipelines located 550 feet south of the project site, on applicant-owned property. Two connections will allow for protection of operation should gas service be interrupted in one line.

Water. All process water will be recycled water supplied to the proposed facility from the San Jose/Santa Clara Water Pollution Control Plant (WPCP) via a 1000 foot pipeline. Potable water will be trucked to the site as needed. Discharge of both process and sewage waste water will be to the WPCP through a connection to a main sewage line located in Zanker Road. Storm water will be directed, as appropriate, 750 feet to a connection with an adjacent flood control channel.

The Four-Month Licensing Process

The Energy Commission is responsible for reviewing and ultimately approving or denying all thermal electric power plants, 50 MW and greater, proposed for construction in California. The Energy Commission's facility certification process carefully examines public health and safety, environmental impacts, and engineering aspects of proposed power plants, and all related facilities such as electric transmission lines, natural gas pipelines, etc. The Energy Commission is the lead agency under the California Environmental Quality Act (CEQA).

Pursuant to Public Resources Code Section 25552, as amended, and Governor Gray Davis' Executive Order D-26-01, the proposed facility will be processed under the Energy Commission's four-month licensing process to ensure that the plant is on-line during 2002.

Public Participation. Over the next four months, the Energy Commission will conduct a number of public workshops and hearings to determine whether the project should be approved for construction and operation and under what set of conditions. These workshops will provide the public and local, State, and federal agencies the opportunity to ask questions and provide input about the proposed project.

If you desire information on how to participate in the Energy Commission's review of the project, please contact Ms. Roberta Mendonca, the Energy Commission's Public Adviser, at (916) 654-4489 or toll free in California at (800) 822-6228. Technical or project schedule questions should be directed to Robert Worl, Energy Commission Project Manager, at (916) 651-8853 or at rworl@energy.state.ca.us. The status of the project, an electronic copy of the application for certification, copies of notices, and other relevant documents are also available on the Energy Commission's web site at www.energy.ca.gov/siting cases/index.html. News media inquiries should be directed to Assistant Director, Claudia Chandler, at (916) 654-4989.

This notice of receipt has been mailed to all parties that have requested to be placed on the mailing list prior to the filing of this application and to property owners located adjacent to the project site and any of the project-related facilities. By being on the mailing list, you will receive notices of all project-related activities and notices when documents related to the project's review are available. If you are not currently receiving these notices and want to be placed on the mailing list or wish to be removed from the mailing list, please contact Mary Dyas at (916) 651-8891 or at mdyas@energy.state.ca.us.

A copy of the AFC document is available for public inspection at:

San Jose Public Library
290 International Circle
San Jose, CA 95119

Copies are also available at the Energy Commission's Library in Sacramento, the California State Library in Sacramento, and at public libraries in Los Angeles, San Francisco, San Diego, Fresno, and Eureka. In addition, copies will be distributed to those public agencies that would normally have jurisdiction except for the Energy Commission's exclusive authority to certify sites and related facilities.

DATE: _____________________

Energy Facilities Licensing Program Manager

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