State Sen. John Burton, D-San Francisco, has been seeking support on the project from his colleagues, saying that the state's energy crisis is at a critical point that requires new plants. The city council shot it down in part because it would have been located too close to the approved 688-acre research and development campus of Cisco Systems, the city's largest employer, which lobbied for the city to deny the power company's proposal.

Last week, San Jose officials tell GlobeSt that new plants are on the agenda somewhere down the future, but did not specify how and in what capacity. David Vossbrink, spokesman for San Jose mayor Ron Gonzales, says the San Jose "is not directly in the power business right now, and it never has been."

Nonetheless, the city may find itself pressured to get into the business very soon should the California Energy Commission, which is currently reviewing the Calpine project, finds in favor of it. The commission has the power to overturn the city council's decision, and is expected to make a decision by this spring.