Springer favors the site for five main reasons: it is near a large supply of treated wastewater needed for cooling, transmission lines and a natural gas pipeline and far enough away from urban areas. The site, owned by Gilroy Foods, is large enough to accommodate a plant.

Although Calpine spokesperson Katherine Potter says that the company is willing to consider proposals from Gilroy or any community in the state, she made it clear that the concept originated with Mayor Springer.

The overture by Gilroy to Calpine comes on the heels of San Jose's rejection last fall of Calpine's proposal to build a new plant there. That concept was shelved in part because the proposed site in Coyote Valley is slated for development to accommodate high-tech occupants, but the proposed plant also drew strong opposition from neighboring cities. The rejection may be made moot by a resolution, sponsored by Saratoga Assemblywoman Rebecca Cohn, that urges the State Energy Commission to override San Jose and approve the Coyote Valley project.

The fall rejection has put additional pressure on San Jose Mayor Ron Gonzales to set into motion a plan for additional power plants to serve the City in the face of the state's energy crisis. One such new plan is the Spartan Energy Center, proposed by San Jose developer Jason DiNapoli for a three-acre site near San Jose State University's Spartan Stadium, was announced yesterday by Gonzales.

Springer's assertion that the Calpine project will reduce electricity costs for the city and its residents is a point of contention. Calpine is licensed as an energy wholesaler in California and cannot sell power to municipalities at a discount, though it may be able to work out a trade: power for treated wastewater. Calpine may also be willing to help finance the project if the location in Gilroy cuts other company costs.

Instant Insights /

Gilroy Courting Calpine Corp. for Power Plant Projects

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