Well, the uncertainty around Calpine's finances gave the Governor an opportunity took nail Calpine on renegotiating those long term contracts. The price per Megawatt-Hour was knocked way down from $61 to $59. Don't bother looking for a rebate check in your mailbox.

One of the big benefits testified to under oath in the evidentiary hearings was the cost savings of the new technology that MEC would employ. Also the new plants will displace the older heavier polluting plants due to market forces, that too was testified to under oath. At $60 the cost is well above the $35 from the old plants in 1999 and 3 times the anticipated cost. Feeling hoodwinked yet?

Fortunately the folks in Alviso have gotten on the right side of the Sierra Club who are opposing the proposed plant in North San Jose because of the cost of the product. Hmmm? All the S.C. arguments about proximity to the load and no new transmission lines to bring power in from elsewhere have been forgotten. (MEC requires the proposed new lines from Newark to North San Jose to avoid overloads in South San Jose lines taking power to the North.)
http://www.energy.ca.gov/sitingcases/losesteros/index.html

The uncertainty seems to have given Hayward a breather:
http://www.bayarea.com/mld/mercurynews/3296634.htm
The plant was pitched during the state's energy crisis. But recent upheaval in the power market means the project is on hold.

``What changed? Where do we start?'' said Calpine spokesman Kent Robertson. ``The energy crisis has taken an odd turn and turned the power market upside down.''

Calpine isn't sure now whether it would be able to get the $300 million dollars in investment backing to cover construction costs.

If it were built, the new plant would plug into PG&E's Eastshore substation. Preliminary studies show that the transmission lines may not be able to handle the proposed plant's production under certain circumstances.

The Energy Commission and the Independent Service Operator suggest replacing the lines would be the best way to address the load problems, according to the commission's report.

Wish I had thought of that argument against MEC!