Earlier this week, San Jose, CA-based power provider Calpine Corporation and San Francisco-based developer Bechtel Enterprises proposed building the new $400-million Russell City Energy Center on a 14-acre patch, near the existing sewage treatment plant in West Hayward. The plant would sit near Enterprise Avenue and power up to 600,000 homes, according to Calpine and Bechtel. If approved, the developers say they can have the plant up and running in three years--an idea backed heavily by Gov. Gray Davis. Davis on Thursday said he wanted emergency-measure power plants in operation statewide by summer in order to keep the juice flowing, even during times of crisis.

Hayward leaders say, however, that they will only consider Calpine and Bechtel's proposal if the duo will assure the city an entire slate of benefits in return. Those include more than $15 million for a new main library, 20 full-time jobs at the plant for local residents and discounted power rates for the city. City officials also want $1 million for area youth and social services.

Power plants have recently become a hot topic of discussion, as California sinks deeper into an energy crisis. Reserves are at critical lows and providers, Pacific Gas and Electric and Southern California Edison, say they are on the verge of bankruptcy due to last year's deregulation.

Calpine has largely benefitted from the furor, reporting Thursday that the company's profits have skyrocketed 240%.

Another plant, Metcalf Energy Center, was nixed by the San Jose City Council last November. However, it is still under consideration by the state Energy Commission, which has the power to reverse the city's decision.

Instant Insights /

City Wants Perks in Exchange for Okaying Power Plant

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