After Calpine threatened to close its 525 MW Sutter power plant because it lost contracts for its output, the independent generator announced May 7 that it obtained short-term resource adequacy agreements with the state\u2019s investor-owned utilities. The California Public Utilities Commission ordered contract negotiations, noting that the 2001-era fossil-fueled plant is more operationally efficient than many in its ability to generate power and ancillary services for grid reliability. But, the plant may be uneconomical to ratepayers, according to the CPUC. Thus, the regulatory body made a slight exception to its financial oversight March 22, ordering utilities to negotiate with Calpine this year but not mandating that any short deals be signed. At the same time, the California Independent System Operator, which insists the plant is needed for grid reliability, has a pending waiver with the Federal Energy Regulatory Commission to \u201cprocure a plant that is at risk of retirement and needed for reliability,\u201d according to CAISO. The grid operator promised to withdraw the request for the waiver if the state commission acted. The grid operator did not respond to several requests regarding whether it would withdraw its waiver as promised. While Calpine threatened closure if it couldn\u2019t line up $17 million in income for the facility this year, it would not reveal how much the utility contracts are worth. If approved by state regulators, those contracts are set to run from July to the end of this year.