Expanding on its plan to add additional gas-fired powergeneration capacity near the Dow Chemical power plant and pipelinefacilities in Pittsburg, CA, that it purchased earlier this month,Calpine Corp. announced a partnership yesterday with BechtelEnterprises to build 2,000 MW of gas-fired power generation inNorthern California, primarily near San Francisco.

The proposed plants will replace old plants with cleaner, moreefficient ones. The 50-50 partnership calls for Bechtel toconstruct the new facilities and Calpine to operate them. Bechtelsaid the plants will use up to 40% less fuel compared to theaverage gas-fired plant in operation today and will utilizeadvanced emissions control technology that will cut emissions ofharmful nitrogen oxides by 93% per KWh and carbon dioxide by 40%.The first plant to be developed by the joint venture will be a 535to 800 MW unit to be located at the Dow Chemical facility. It isexpected to begin operations in 2001. Over the next several months,Calpine and Bechtel will be working with local governments,environmental and community groups to finalize the selection ofadditional sites for other new units.

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