Community News

Date: June 12, 2000

Contact: Bill Highlander, Director, Public Relations
Phone: (408) 792-1244

Calpine and Bechtel continue to believe that ultimately the merits of the Metcalf Energy Center will persuade our political leaders to approve the project. We will continue with the California Energy Commission (CEC) siting process for the project.

We are surprised that Mayor Gonzales has chosen to oppose the Metcalf Energy Center before he has all the facts. The Final Staff Assessment by the CEC, which will provide a thorough summary of all project impacts, will not be available until late July. This CEC report will serve as the Final Environmental Impact Report (FEIR) for the project.

The Mayor has historically been an advocate for allowing governmental processes to evolve in an unbiased and orderly manner. Just last week, in reference to the Planning Commission appointments, the Mayor chided his critics for "�not allowing the process to unfold before passing judgment." (San Jose Mercury News, June 7, 2000). Further, as recently as November of last year, Mayor Gonzales reiterated his desire to defer a decision on our project until the EIR is complete. However, today he is passing judgment before all the facts are available. We view his actions today to be highly inappropriate.

It is equally disturbing that the Mayor would take such a position at this time. The need for new sources of power in Silicon Valley is real and immediate. This need was clearly showcased at the Silicon Valley Manufacturing Group's Energy Summit held this past Friday, June 9th. The explosion of local high tech industries and worldwide use of the internet have pushed the area's power supply and distribution capabilities to their limits. Threats of local blackouts are real as early as this summer. Industrial customers in the South Bay have already had electrical service cut this year due to supply shortages.

We are uncertain why the Mayor would oppose the only concrete and timely solution proposed to address this growing problem, leaving San Jose and its businesses and residents at risk for reliable electrical supply. Energy experts from PG&E, the Electric Power Research Institute, the California Independent System Operator, the California Public Utility Commission, and high tech companies such as Oracle and Hewlett Packard have stated that new generation, upgrades to transmission and distribution, conservation, and new technologies are all needed to prevent a looming crisis.

Nowhere in the world is reliable high quality power more important to fuel our economic engine than here in Silicon Valley. Especially troubling, is the Mayor taking this position while advocating the extension of BART to San Jose, which runs exclusively on electricity. While it's common for local elected officials and citizen activists to have a "not in my backyard (NIMBY)" approach to power plant siting, you can't have it both ways.

The proposed Metcalf Energy Center is entitled to the same due process and fair hearing that is afforded any other project coming before the City Council. We remain firmly committed to presenting the San Jose City Council and the community a final EIR that verifies this project as completely safe, environmentally beneficial, and sited in the most appropriate location.