California governor favors San Jose power plant mayor still opposes

April 20, 2001
California Gov. Gray Davis ended months of speculation by throwing his support behind a controversial power plant project that has become the poster child for what's wrong with the state's electricity markets. But the San Jose City Council, Cisco Systems Inc., neighborhood groups, and Mayor Ron Gonzalez remain unmoved in their opposition to the 600 Mw Metcalf plant proposed for an industrial site south of the city.


By Ann de Rouffignac
OGJ Online

HOUSTON, Apr. 20--California Gov. Gray Davis ended months of speculation by throwing his support behind a controversial power plant project that has become the poster child for what's wrong with the state's electricity markets.

But the San Jose City Council, Cisco Systems Inc., neighborhood groups, and Mayor Ron Gonzalez remain unmoved in their opposition to the 600 Mw Metcalf plant proposed for an industrial site south of the city.

"Davis has a responsibility to the whole state. He's not making decisions about land use in San Jose," said the mayor's spokesman David Vossbrink.

The mayor, who has opposed the plant since its inception almost 2 years ago, says he is concerned about the impact of the power plant on the health of the nearby residents. Cisco opposes the plant because it would obstruct the view and it claims employees' health will be threatened. The high tech maker of internet hardware plans to build a corporate campus next door to the power plant site.

But Cisco and other opponents have become increasingly isolated. Metcalf has won the support of the Sierra Club, American Lung Association, San Jose Silicon Valley Chamber of Commerce, and the Silicon Valley Manufacturing Group, and now the governor.

Build it, governor says
Davis said in a Wednesday statement the power plant will be "one of the cleanest and most efficient facilities of its kind. I am urging the California Energy Commission to take necessary steps to approve construction of the Metcalf power plant."

Currently, two commissioners of the California Energy Commission assigned to the project will make a preliminary decision by mid-May. That decision then goes before the entire commission. A final determination is expected 30 days later.

The commission staff has already recommended approval of the site for the power plant. It completed an unprecedented 18 days of public hearings on the project in late March.

"The impacts of this large power plant at this proposed site would harm the quality of life for San Jose residents," said Gonzalez in testimony before the commission Mar. 23. "The CEC should direct the company to seek a better more compatible site."

But even if the commission votes in favor of the power plant, it would have to override local land use decisions by San Jose city officials. That's an iffy proposition. The commission has never imposed a power plant siting decision against the recommendations of a local government. A spokesperson for the energy commission said the preliminary decision in May would include a full consideration of the "override" rights of the commission

"We are in uncharted territory here," said Lisa Poelle, spokeswoman for Calpine Corp., the owner and developer of the proposed facility. "It is unclear whether the override provisions can force the city to provide other requirements besides the site alone. It does us no good to get the site without the hookups for water and sewer."

Calpine requested the city sell it treated wastewater for cooling the plant. But the city has not cooperated on any issue involving the power plant.

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