The latest step in a joint effort by the City of Morgan Hill and
a San Jose group to stop a proposed 600-megawatt power plant in
Coyote Valley was derailed Tuesday by the California Supreme
Court.
The latest step in a joint effort by the City of Morgan Hill and a San Jose group to stop a proposed 600-megawatt power plant in Coyote Valley was derailed Tuesday by the California Supreme Court.
The Santa Teresa Citizen’s Action Group and the city had tried to invalidate the license the Energy Commission awarded the Calpine Corporation’s Metcalf Energy Center in September 2001.
Neighbors were worried about the effects of air pollution from the gas-powered plant as was the Morgan Hill City Council, downwind of the facility. Also joining in the suit were the Great Oaks Water Co., Demand Clean Air and Californians For Renewable Energy.
The $500 million plant is proposed for a site just south of Metcalf Road between Monterey Road and Santa Teresa Boulevard about 10 miles north of Morgan Hill.
The justices denied a request to hear a Court of Appeal decision that upheld the legality of the Energy Commission judicial review process for power plant licenses. The California Constitution requires that an appeal of an Energy Commission decision be heard by the highest court.
City Attorney Helene Leichter said she and the City Council were notified on Wednesday of the case’s disposition.
“It wasn’t particularly a surprise,” she said Thursday. “This was really a procedural issue – a matter of whether or not you had a fair hearing.”
Courts, she said, will not often overturn the decisions of lower courts.
“That doesn’t mean it wasn’t important to do,” Leichter said.
Leichter said the council has not yet determined whether or not to appeal, a path they can take alone or together with the other plaintiffs in the case.
City Finance Director Jack Dilles said about $76,000 has been spent so far on the Calpine lawsuit and its appeal. The East Bay firm of Stephan Volker is handling the case for the city.
Lisa Poelle, Calpine’s communications manager, said they were pleases with the court’s decision.
“It’s important for people to understand that we went through the protocol established by state and the permit was upheld in a very strong way.”
The natural gas-fired plant would provide electricity for as many as 600,000 homes, and has been supported by the San Jose-Silicon Valley Chamber of Commerce, Silicon Valley Manufacturing Group and American Lung Association. The San Jose City Council initially opposed the plant, but later reversed its decision.
The Morgan Hill City Council voted 4-1 to support the lawsuits, with Councilwoman Hedy Chang dissenting.
The lawsuits have not stopped construction of the plant. Poelle said the company has procured more than 90 percent of the equipment and invested nearly 50 percent of total $500 million. Most of the major equipment is on site, she said and contractors are just finishing up foundation piles. The company intends to complete the project by the end of 2004.
Poelle said the project has been challenged more than a dozen times.
“Most all of the remaining suits are appeals of appeals,” Poelle said.
Poelle said she was pleased that the Calpine website now has a section for community involvement and one on environmental programs.
“Look for the Metcalf Energy Center partnership programs under the environmental section,” she said.
www.calpine.com
