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Calpine Corporation received final approval from the California Energy Commission (CEC) to construct the 600-MW Russell City Energy Center in Hayward, Calif. Calpine expects to begin construction of the new energy center in the spring of 2008 and operate the plant when it starts production in mid-2010. Calpine's co-investor in Russell City is Stamford, Conn.-based GE Energy Financial Services, which acquired a 35 percent interest in the plant from Calpine in September 2006. Pacific Gas and Electric Company will purchase the full output of the power plant under a ten-year agreement.

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