Calpine, GE to Build Plant in Inland Empire

Calpine has entered into an agreement with General Electric to build a 775 MW power plant in Southern California?s fast-growing Inland Empire by summer of 2008 using the most efficient combined-cycle turbines commercially available. However, like many other permitted projects waiting in the wings, there is no contract for the output. ?We?re pulling a rabbit out of a hat,? said Kent Robertson, a spokesperson for Calpine, acknowledging that long-term contracts are crucial to building California?s new plants. GE will invest more than $500 million to construct the plant, known as the Inland Empire Energy Center, deep in the heart of Southern California Edison?s service territory in an unincorporated area of Riverside County known as Romoland. A spokesperson said GE is interested in ?showcasing? the new turbines in North America after successfully demonstrating them in Wales. ?Southern California Edison is a natural customer,? said Robertson. ?The market fundamentals are screaming for new capacity in Southern California.? However, an Edison spokesperson would not confirm that the utility has talked with Calpine about any potential power-procurement agreement. Calpine obtained California Energy Commission approval for the center in 2003, although under a plan that would have used a less efficient 670 MW combined-cycle turbine set. In this case, GE would own the plant initially but would eventually sell it to Calpine. Governor Arnold Schwarzenegger lauded the deal, calling it ?fantastic.?

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Calpine, GE to Build Plant in Inland Empire

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