Calpine Corp., Texas’ largest independent power producer,announced plans last week to build, own and operate an 800 MWnatural gas-fired cogeneration power plant at Bayer Corp.’schemical facility in Baytown, TX. Permitting for the $335 millionfacility is under way, the company said. The plant is expected tobegin commercial operation in late 2001.

At the same time the company said it has completed the purchaseof development rights from Enron Corp. for a 500 MW facility underconstruction in Pittsburg, CA.

The Texas facility, which is expected to burn 135 MMcf/d, willemploy three Siemens Westinghouse Power Corp. 501F combustionturbines, allowing it to run at increased efficiency, Calpine said.”Compared to the average older gas-fired power plant in operationtoday, Baytown will use up to 40% less natural gas,” said DianaTaylor, Calpine’s senior vice president. “And by utilizing thelatest generation in combined-cycle combustion turbine design andadvanced emissions control systems, we can significantly reduceemissions compared to older plants.”

The company said the plant will generate 700 MW of electricityunder baseload conditions and will have the ability to add 100 MWof peaking power during hot summer months.

The Baytown plant will supply Bayer with all of its electric andsteam requirements for 20 years. with excess power sold into theERCOT wholesale power market under a variety of short-, mid-, andlong-term contracts, the company said.

The Baytown plant will be the newest addition to Calpine’scentral region power system. The San Jose, CA-based company alreadyhas six power plants (three in operation and three underconstruction) in the state. All of them are gas-fired. Once all ofthe plants are completed, they will burn a combined 610 MMcf/d toproduce a total of 3,700 MW.

“We have power plants in operation, under construction, orplanned in 14 states,” said Jimmy Glotfelty, a Calpine spokesman.”But Texas is our core area for gas-fired generation. We mightgenerate more electricity in California, but we have geo-thermaland hydro assets doing a lot of the work. Texas is clearly whereour gas-fired focus is, and we hope to expand it.” Glotfelty addedthat all the gas Calpine uses to fire these plants is bought fromnearby pipeline systems or supplied from the Sheridan Energysystem, which Calpine bought last summer.

Overall, the company currently has approximately 9,800 MW inoperation, pending acquisition, under construction or in announceddevelopment. Calpine’s goal is to reach 16,000 MW by 2003,Glotfelty said.

Calpine said it has completed the transaction for the purchaseof development rights to build, own and operate the Pittsburg, CA,plant from Enron. The 500 MW Los Medanos Energy Center (formerlycalled the Pittsburg District Energy Facility) recently waslicensed by the California Energy Commission after a comprehensiveyear-long environmental and technical review. Construction of the$350 million facility is underway.

The San Jose, CA-based Calpine expects to begin energydeliveries in July 2001 for the peak summer demand season.

Kiewit Industrial of Omaha, NE, is building the facility on a12-acre site adjacent to USS POSCO Industries’ steel mill. As acogenerator, Los Medanos will provide USS POSCO with 60 MW ofelectricity and 75,000 pounds per hour of steam for use inindustrial processing. Calpine will sell the remaining 450 MW ofelectricity to California’s power exchange and under bilateralcontracts.

Calpine currently has another project under development inPittsburg at the Dow Chemical plant. The Delta Energy Center, ajoint venture with Bechtel Enterprises, will generate approximately880 MW, plus steam for sale to Dow and to California’s deregulatedpower market.

John Norris

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