Russell City Energy Center Files Application For Certification With California Energy Commission

May 23, 2001 San Jose-based, Calpine Corporation (NYSE: CPN) and San Francisco-based, Bechtel Enterprises Holdings, Inc. today filed an Application For Certification (AFC) with the California Energy Commission (CEC) for its proposed Russell City Energy Center in Hayward, Calif. The filing marks the beginning of an extensive CEC licensing process required to build and operate an electricity generating facility in California. The filing included a request for expedited review that would reduce the licensing review process period from 12 months to 6 months.The proposed Russell City Energy Center would be a 600-megawatt, natural gas-fired, combined-cycle electric generating facility located on approximately 14 acres of land, zoned heavy industrial, at 3636 Enterprise Avenue in Hayward. The site is adjacent to the city of Hayward's wastewater treatment plant, which would supply recycled water to the Energy Center. The Russell City Energy Center would provide needed electricity for Hayward, western Alameda County and the San Francisco Peninsula.

The modern technology used at the facility would allow for a greater than 90 percent reduction of certain emissions and is 40 percent more fuel-efficient compared to older gas-fueled facilities in the Bay Area.

"The Russell City Energy Center will provide a vital new source of clean, reliable electricity in the region," said Curt Hildebrand, vice president and general manager of the Calpine/Bechtel Joint Development. "We look forward to working with the City of Hayward, Alameda County and the California Energy Commission to develop a model Energy Center."

Submittal of the AFC represents the culmination of more than six months of extensive engineering, technical and environmental studies.
"We are hopeful that the considerable groundwork that we have laid thus far will make this project eligible for the six month CEC review process," Hildebrand added. "We are seeking the expedited review to do everything we can to help solve the state's energy crisis as quickly as possible."

Once the CEC determines that the application is complete, and determine whether the project qualifies for the expedited review process, the official review will begin. As lead agency, the CEC will work with environmental and government agencies in conducting its review and will hold local workshops and hearings to encourage community participation. The expedited review process would require the same environmental and technical standards as the longer review period. Based upon the successful licensing of the project, construction could begin in summer of 2002, with commercial operation by summer of 2004.

Copies of the AFC filings will be available through the CEC and at local libraries. Summaries of the study will be posted on the Russell City Energy Center website. To receive additional information on the CEC process, visit their website at For more information on the Russell City Energy Center, call 510-704-8475.

Calpine Corporation, based in San Jose, Calif., is dedicated to providing customers with reliable and competitively priced electricity. Calpine is focused on clean, efficient, natural gas-fired generation and is the world's largest producer of renewable geothermal energy. Calpine has launched the largest power development program in North America. To date, the company has approximately 32,300 megawatts of base load capacity and 7,000 megawatts of peaking capacity in operation, under construction, pending acquisitions and in announced development in 29 states and Canada. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit its Website at

Bechtel Enterprises Holdings, Inc. is the development, financing and ownership affiliate of the Bechtel organization, a global engineering and construction firm. Bechtel has been at the center of energy development since the 1940's, having built more than 450 power stations with a total generating capacity exceeding 250,000 megawatts. Through its power development affiliate, InterGen, and its own portfolio, Bechtel Enterprises has more than 17,600 megawatts of energy capacity in operations, under construction, or in advanced development around the world.