The California Independent System Operator (California ISO)ordered Pacific Gas & Electric (PG&E) to initiate itslocalized non-firm interruptible program 12- 6 p.m. yesterdaybecause of continued heat Northern California, particularly in theinland areas. In addition, the amount of generation unavailable inthe Bay Area due to repairs increased from 488 MW Wednesday to 800MW Thursday. PG&E said it curtailed 300 MW of interruptiblecustomers beginning at 12:15 p.m. during localized load shedding tohelp stabilize the flow of power on the ISO-controlled transmissionsystems. The California ISO was not under a Stage One Emergencyyesterday, however it issued a Power Watch, urging customersthroughout the state to conserve electricity whenever possible.

Calpine Corp. acquired the 1,000 MW gas-fired Freestone EnergyCenter in Freestone County, TX, from Entergy Corp. yesterday for$61 million to Entergy and the assumption of $147 million inliabilities. Construction of the center is expected to begin duringthe third quarter of 2000, with a two-phased commercial start-upbeginning in June 2002. The transaction expands Calpine’s positionas the largest independent power producer in Texas. Calpine has 10gas-fired plants in operation, under construction or in developmentin the state — representing 5,400 MW of generation.

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