Great News!

At 2 p.m. today, San Jose Mayor Ron Gonzales and the representatives of
Calpine Corporation announced at a news conference, which included my
participation, that they have resolved their issues to the extent that Mayor
Gonzales and the San Jose City Council will now support the construction of
the 580 MW Metcalf Energy Center generation facility in the Coyote Valley.

As you know the SVMG Board endorsed Metcalf Energy Center proposal on March
8th and have encouraged the city and Calpine to attempt to work through
their differences to move the facility forward.

Mayor Gonzales, the city council and Calpine representatives deserve praise
for finding common ground in a way that meets the health and safety of the
city and the energy needs of Silicon Valley residents.

Sincerely,

Carl Guardino



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