Calpine receives court OK of license agreement with San Jose, PG&E

By Reshmi Basu

New York, Oct. 24 - Calpine Corp. obtained approval Wednesday to assume a license agreement with San Jose, Calif., and Pacific Gas and Electric Co. from the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported,, Calpine subsidiary Los Esteros Critical Energy Facility LCC, based in San Jose, operates an electric facility that can produce 190 megawatts of electricity.

In 2005, the facility, PG&E and the city entered into a pole license agreement, under which Los Esteros has the permission to install electric pole lines on city property. In addition, Los Esteros has an option to install a permanent overhead transmission line while PG&E has the right to install certain electrical interconnection infrastructure within the area covered by the license.

The license agreement allows for the interconnection with PG&E's transmission lines and the ability to transmit the electricity generated at the Los Esteros facility to the power grid.

Calpine will pay a cure amount of $57,000 to the city of San Jose.

Calpine, a San Jose, Calif., power company, filed for bankruptcy on Dec. 20, 2005. Its Chapter 11 case number is 05-60200.

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