The natural gas-fired power plant has generated opposition from South San Jose residents because of the risks of plant pollution involved in building it. San Jose Mayor Ron Gonzales and the city council rejected the proposal last year. Calpine then appealed to the California Energy Commission, which has the power to overrule the council.

The state energy crisis made power plant construction a priority to Gov. Gray Davis who endorsed Metcalf in April. Davis appointed a majority of the commission's board members.

In June, the San Jose City Council voted to approve essentially the same plant it had rejected seven months earlier. Despite the June vote by the San Jose City Council, the commission still considers today's vote an override of local authority. It is the first time the commission has overridden a local authority since 1981, according to a spokeswoman for CEC.

Calpine Corp. and Bechtel Enterprises are prepared to begin construction on the 20-acre site this October. Construction is estimated to take approximately two years. The project is expected to begin commercial operation during the summer/fall of 2003.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.