Calpine to Build Gas-Fired Power Plant

Calpine Corp. said it will spend as much as $310 million to build a natural-gas-fired power plant near Sacramento, including $20 million to $25 million to reduce the plant’s effect on the environment. Calpine’s proposed Sutter plant is expected to open in 2000 and generate as much as 500 megawatts of power, enough to light 500,000 homes. The additional investment will allow operators to use air instead of water to cool the plant. San Jose-based Calpine handles about 3,100 megawatts of power generation, enough to light more than 3 million homes. Calpine said it proposed the additional investments after local farmers protested that water discharge from the plant would foul nearby drainage ditches. The new air-cooling design will reduce the plant’s water consumption by 95%. Shares of Calpine rose 6 cents to close at $17.38 on the NYSE.