Calpine Corporation completes acquisition of San Diego Power Project from PG&E National Energy Group

SAN JOSE, Calif. & SAN FRANCISCO, July 10, 2001 — Calpine Corporation and PG&E Corporation's PG&E National Energy Group announced today that Calpine has completed the acquisition of the Otay Mesa Generating Project in San Diego County.

The PG&E National Energy Group developed the project, which was licensed by the California Energy Commission in April. Construction of the 500-megawatt energy center is expected to begin later this summer, with completion targeted for mid-2003.

Under the terms of the sale, Calpine will build, own and operate the facility and PG&E National Energy Group will contract for up to 250 megawatts of output.

"This project will directly address the electricity supply imbalance that currently exists in San Diego County," said Ron Walter, Senior Vice President - Business Development. "Otay Mesa is an important component needed to ensure price stability and power reliability for San Diego and all of California."

"The PG&E National Energy Group is committed to being part of the energy solution in California," said Thomas B. King, president and Chief Operating Officer of the PG&E National Energy Group, West Region. "Generation from the Otay Mesa plant will be an important part of our growing western resource portfolio."

The Otay Mesa Generating Project will be located within a 46-acre property on the eastern portion of Otay Mesa, near the base of the San Ysidro Mountains, approximately 1.5 miles from the United States-Mexico border.

Designed as a highly efficient, combined-cycle generating station, the Otay Mesa facility will be fueled by natural gas and will include state-of-the-art emission control equipment and water conservation technology. In addition, in a first-of-its-kind program, the Otay Mesa Generating Project will utilize mobile emission reduction credits to offset emissions. A large portion of the mobile credits will be created through the conversion of refuse-hauling vehicles in San Diego to natural gas fuel.

Power from the Otay Mesa plant will be sold into the California wholesale market. As part of the agreement to sell the project to Calpine, the PG&E National Energy Group will enter into a 10-year tolling arrangement under which it will contract for up to 250 megawatts. Calpine will market the balance of the output through its energy services group.

In addition to the capacity it will receive from the Otay Mesa Plant, the PG&E National Energy Group is constructing a 1,000-megawatt LaPaloma plant near Bakersfield, Calif., which is expected to be fully operational by mid-2002. Additionally, the PG&E National Energy Group is in the process of acquiring 66 megawatts of wind generation near Palm Springs, and it is also developing with Sempra International the proposed North Baja Pipeline, which will provide a potential new source of natural gas for Southern California and Northern Mexico.

In total throughout the West, the PG&E National Energy Group has more than 4,000 megawatts of new generation in construction or advanced development.

Building upon its existing 2,425-megawatt natural gas and geothermal operating portfolio, Calpine has launched the largest power generating initiative in the state with 1,950 megawatts of energy centers under construction in and around California, and has announced the development of an additional 3,850 megawatts of generation.

By the end of 2005, Calpine plans to build more than 12,000 megawatts of generation dedicated to restoring the stability of California's energy markets. Calpine's total North American portfolio will exceed 70,000 megawatts by the end of 2005. The company recently announced the acquisition of a 1,200-megawatt natural gas-fired plant in the United Kingdom.

Calpine Corporation, based in San Jose, Calif., is dedicated to providing customers with reliable and competitively priced electricity. Calpine is focused on clean, efficient, natural gas-fired generation and is the world's largest producer of renewable geothermal energy. Calpine has launched the largest power development program in North America.

To date, the company has approximately 34,000 megawatts of base load capacity and 7,200 megawatts of peaking capacity in operation, under construction, pending acquisition and in announced development in 29 states, the United Kingdom and Canada. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN.

Headquartered in Bethesda, Md., PG&E National Energy Group develops, owns and operates electric generating and gas pipeline facilities and provides energy trading, marketing and risk-management services.

More information about each company can be found at their respective websites at www.calpine.com or www.pgecorp.com.

Sponsored by FLSmidth

Related Articles

Profiling Geothermal Energy in North America

North America holds diverse geologic conditions, economic and political contexts, and geothermal experiences.

Energy Reform Package to Increase Competition And Private Sector Opportunities in the Mexican Power Industry

In April, Mexican President Enrique Pena Nieto proposed a legislative reform package that was approved by the Mexican Congress, overhauling the nation's energy industries.

Follow Power Engineering on Twitter
Latest News

Southern Power buys Oklahoma wind power project

Southern Power, a subsidiary of Southern Co. (NYSE: SO), will acquire a wind power project in...

FERC approves $2.8B deal for Dynegy to acquire Duke Energy's non-regulated Midwest generation business

Federal Energy Regulatory Commission (FERC) has approved the sale of Duke Energy’s (NYSE: DUK...

China restarts construction of nuclear power unit

Construction on the fifth unit at China’s Hongyanhe nuclear power plant was restarted 15 mont...

NV Energy seeks RFPs for additional planning capacity in Nevada

NV Energy (NYSE: NVE) is seeking proposals for an additional 54-MW of company-owned planning ...

BOND begins work at New Salem Harbor Station

BOND, a civil and utility construction firm, has begun preliminary site work at New Salem Har...

US to pledge up to 28 percent emission cut in global treaty

The United States pledged Tuesday to cut its greenhouse gas emissions up to 28 percent as par...

Hermann sues power commissions over coal plant costs

The city of Hermann is suing state utility groups over the costs of electricity from a southe...

Canadian Solar completes acquisition of Recurrent Energy

Canadian Solar (Nasdaq: CSIQ) completed the acquisition of solar developer Recurrent Energy f...

Power Engineering Current Issue

12/01/2014
Volume 118, Issue 12
1412pe-cover1
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

Cimation Opens London Office, Focuses on Cyber Security Services

Cimation Opens London Office, Focuses on Cyber Security Services

Cardinal Energy Announces Drilling Has Commenced on Bradford West Lease

Cardinal Energy Announces Drilling Has Commenced on Bradford West Lease

Windstream Technologies Sets Single Month Record

Windstream Technologies Sets Single Month Record

Hinto Energy, Inc. Establishes Advisory Board to Focus on New Opportunities

Hinto Energy, Inc. Establishes Advisory Board to Focus on New Opportunities

ZaZa Energy Reports 2014 Year-End Financial and Operational Results

ZaZa Energy Reports 2014 Year-End Financial and Operational Results

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>