Calpine to Build San Diego County Power Plant

Calpine Corp., which has power plant projects in 27 U.S. states and Canada, agreed to buy a 500-megawatt plant project from PG&E; Corp. for undisclosed terms to add electricity generation in San Diego. Calpine will build, own and operate the Otay Mesa Generating Project in San Diego County. PG&E;’s National Energy Group will contract for up to 250 megawatts of the plant’s output, enough power to light 250,000 homes. The project will help improve the power supply shortage in San Diego County, where a new power plant hasn’t been built in nearly 30 years, said Peter Camp, vice president of San Jose-based Calpine. Calpine shares rose 13 cents to close at $40.88 on the NYSE.