Calpine Corp. sources say the 600-megawatt power plant would work well in West Hayward's industrial area because it could use recycled water from the city's sewage treatment plant and send electricity through nearby transmission lines to a nearby PG&E substation. Calpine officials have said they would like to open the plant by spring or summer 2004 on property north of the State Route 92 approach to the Hayward-San Mateo Bridge on Enterprise Avenue.

The seven- to 12-story plant, which would employ roughly 250 workers during construction and about two dozen as full-time employees once it is built, would produce enough power for the equivalent of 600,000 homes. Calpine planners have suggested that they could either install equipment at the sewage treatment plant that would transmit the water across the street to the new power plant or have the water transferred to the plant and process it there.

No studies have been conducted yet to show which method is best, a source with the city confirmed this week. San Jose-based Calpine, which reported revenue of $847 million in December 1999, has not filed a formal application with the city or with the California Energy Commission yet. Calpine officials could not be reached for comment.