Metcalf Energy Center
	A joint development of Calpine/Bechtel

CALIFORNIA ENERGY COMMISSION STAFF REPORT RECOMMENDS APPROVAL OF THE METCALF ENERGY CENTER

SAN JOSE -- The Final Staff Assessment (FSA) from the California Energy Commission (CEC) staff finds that the Metcalf Energy Center (MEC), a 600 megawatt natural gas-fueled power plant proposed for the North Coyote Valley will provide substantial benefits to the local electric system, and electric consumers without any significant harmful impact to public health, water resources or wildlife habitat. As a result, the CEC staff has recommended approval of the project and submitted it to the Commission for hearings and public comment before taking final action.

"We are extremely pleased that the CEC staff report concludes that the Metcalf Energy Center will be safe, environmentally sound and is absolutely necessary," said Curt Hildebrand, Calpine Vice President and General Manager for the Calpine / Bechtel Joint Development. "Further, CEC staff is not recommending any alternative sites for the project. The Metcalf Energy Center will bring significant and timely benefits to the community and is supported by industry, labor and environmental organizations."

The FSA also finds that the MEC use of recycled water for cooling will help San Jose reduce it's impact on sensitive Bay habitat, will dedicate 131 acres of hillside habitat to permanent open space for the Bay Checkerspot Butterfly and will provide a significant new source of school and municipal funding without placing any significant new demands on public services. Additionally, the project will create an improved riparian corridor along Fisher Creek.

The FSA is the culmination of an environmental review process designed to address every possible impact associated with the Metcalf Energy Center. This process has included extensive workshops and public hearings involving more than 20 public agencies and the findings of some 16 technical studies over the past 18 months.

While the CEC staff did find a significant visual impact and a loss of agricultural land impact regarding the Metcalf Energy Center project, these impacts would have also arisen even if the land were developed for campus industrial purposes. The report notes that the zoning and general plan designation changes to accommodate the energy center will be addressed by the San Jose Planning Commission and City Council in Fall, 2000. The CEC staff determined that the MEC is consistent with the applicable major strategies, goals and policies of the City's General Plan related to land use and the general goals of the North Coyote Valley Master Development Plan.

Earlier this year, the Bay Area Air Quality Management District determined that the Metcalf Energy Center will use the best and most appropriate emissions control technology and that the project will have no significant impacts on public health. In addition, the California Independent System Operator (ISO) has endorsed the project, stating that San Jose is the most vulnerable metropolitan area on the PG&E system, and that the project will provide critical voltage support and enhance system reliability for the San Jose area.

Numerous businesses, labor organizations, health advocates and environmental leaders support the Metcalf Energy Center including the Loma Prieta Chapter of the Sierra Club, the local Santa Clara-San Benito Counties Chapter of the American Lung Association, the Center for Energy Efficiency and Renewable Technologies, the California Manufacturers and Technology Association, California Large Energy Consumers Association, the Building and Construction Trades Council, the Santa Clara County Farm Bureau, the CLEANAIR Coalition, Oracle, Siemens, Lockheed Martin, G.E., and many others.

The Metcalf Energy Center is a development of San Jose-based Calpine Corporation, one of the nation's leading independent providers of electric power generation, and Bechtel Enterprises Holdings, Inc., the development, financing and ownership affiliate of the Bechtel organization, one of the world's premier engineering and construction companies. The MEC is proposed for a 20-acre site in southern San Jose at the base of Tulare Hill, below the existing transmission towers and nearby PG&E's 40-acre Metcalf Electrical Substation.