San Jose Mercury

Sunday, February 12th, 2006

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Calpine project draws fire

GEOTHERMAL PLANTS IN SISKIYOU COUNTY WOULD RUIN SACRED SITES, TRIBES SAY

By Brandon Bailey, Mercury News

After years of controversy, the San Jose-based Calpine energy company is gearing up to draw geothermal power from a quiet corner of Northern California -- and opponents fear the result will change the character of a remote volcanic area where American Indians have conducted vision quests and prayer ceremonies for centuries.

The two power plants that Calpine has proposed building in Siskiyou County represent a valuable asset for the financially struggling energy producer, at a time when demand for so-called green or renewable electricity is on the rise. They may also be a test of whether competing social interests can co-exist.

Nearby resident Howard Wynant said he's glad to see energy companies replacing fossil fuels with alternative sources, including geothermal power, that don't pollute the air or contribute to global warming. Still, he wishes Calpine would abandon its plans for the scenic Medicine Lake highlands, an area long considered sacred for many Indians.

``We all use electricity and, obviously, clean air and clean energy are things we need to look at for our future,'' said Wynant, a leader of a Shasta Indian group that opposes the projects. ``But why go to the most sensitive, controversial place you could find to try to pursue this resource?''

Peaceful protest

It's a question that drew more than 100 opponents to a peaceful protest outside Calpine's Silicon Valley headquarters last month, and one that attorneys will be arguing before a federal appeals court this week. It's also confounding for a company that takes pride in being one of the state's biggest producers of renewable power.

``I don't care how clean or green it is, nobody wants it in their back yard,'' said Calpine executive Charlene Wardlow.

But after years of local and federal review, officials are expected to give Calpine clearance this spring to proceed with the first of two geothermal plants in the Medicine Lake area. Calpine wants to begin work on a final testing well this summer at a site called Telephone Flat. Company spokesman Kent Robertson said plant construction could begin in 2008.

It may seem strange for Calpine to be pursuing new projects: The formerly high-flying company filed for Chapter 11 bankruptcy protection in December, after racking up billions in debt during a construction spree over the last decade. But executives say they are reorganizing to continue operating power plants and building new ones.

Calpine's plans for the Medicine Lake area are relatively small. It has permits to build two geothermal plants that would use naturally occurring steam, piped from thousands of feet underground, to produce just under 50 megawatts of electricity at each site.