Calpine to Build Plant to Market Power

Calpine Corp. said it will build a plant to sell electricity directly to large industrial customers, bypassing local utilities. Construction is expected to begin in 1998 on the site near Yuba City. The San Jose-based power plant operator wouldn’t say how much it plans to spend to build the Sutter Power Plant, which it expects to begin operating by 1999. By then, some California businesses and consumers are expected to be able to choose their power suppliers in the same way they now choose long-distance telephone companies. The 480-megawatt plant will produce enough electricity to power 480,000 homes. Rather than selling to individual homeowners, Calpine intends to target new power companies spawned by deregulation.