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Proposed Calpine Power Plant
aka Metcalf Energy Center

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Thursday, July 8th, 1999 @ 6:26 PM
Subj: Calpine's Gilroy Power Plant
From: [email protected]

From today's Calpine press release (http://www.calpine.com/news/story.asp?news=773784816265108) announcing an amendment to their power purchase agreement with PG&E for the Gilroy plant:

"'This amendment enables Calpine to directly offer California electric consumers the benefits of competitive market pricing, while further optimizing the earning potential of our Gilroy plant,' said Bob Kelly, senior vice president for Calpine. "

"The amendment provides for the termination of the remaining 18 years of PG&E's existing long-term contract with Calpine in exchange for a fixed long-term payment schedule and significant ratepayer benefits. Under this agreement, Calpine will continue to operate the Gilroy facility and sell the plant's electric output to PG&E through October 2002. Beginning November 1, 2002, Calpine will sell output from the Gilroy plant in California's competitive energy market."

Will this change increase or decrease the pollution from the plant once it enters California's competitive energy market?

Sincerely,

Steven Nelson

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