California panel OKs controversial Calpine plant
Wed Sep 26, 2007

SAN FRANCISCO, Sept 26 (Reuters) - California energy regulators on Wednesday approved construction of a controversial power plant by Calpine Corp in the city of Hayward across the bay from San Francisco. The 600-megawatt natural gas-fired plant drew opposition from local residents and environmentalists and raised concerns about aviation safety because of its location near the Hayward Executive Airport.

The staff of the California Energy Commission in July said it could not recommend the project because hot air rising from the proposed plant's exhaust stacks could be a hazard for aircraft taking off and landing at the airport. The plant was initially certified by the commission in 2002 but was not built for various reasons. The Federal Aviation Administration early in September questioned the safety issue and asked for more time to study the project.

David Butterfield, an FAA official, told the commission on Wednesday that pilots of fixed wing planes and helicopters should avoid flying through the exhaust plume when they are below 1,000 feet. Butterfield said he expects pilots will fly through a plume but did not see that as a significant safety hazard, adding it is an "acceptable risk."

The plant also was opposed by the Sierra Club's San Francisco Bay chapter which said the commission should reduce greenhouse gas emissions from power plants by pushing for more energy efficiency and building up supplies of renewable energy.

Calpine said clean-energy technologies will make the plant 40 percent more fuel efficient and allow for more than a 90 percent reduction of emissions compared to an average fossil-fueled power plant. Construction of the $600 million plant, called the Russell City Energy Center, is expected to begin in the second quarter of 2008 with commercial operation to begin by the summer of 2010. General Electric's Energy Financial Services unit has a 35 percent stake in the project.

It will sell the electricity to Pacific Gas & Electric Co .

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