Calpine Corp. announced it has bought the development rights tobuild, own and operate a 500 MW natural gas-fired cogen facility inPittsburg, CA, from Enron Corp. The Los Medanos Energy Center(formerly called the Pittsburg District Energy Facility) recentlywas licensed by the California Energy Commission after acomprehensive year-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 Company of Omaha, Neb. is building thefacility on a 12-acre site adjacent to USS POSCO Industries’ steelmill. As a cogenerator, Los Medanos will provide USS POSCO with 60MW of electricity 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.

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