California regulators Thursday approved a power contract that a PG&E Corp. (PCG) unit signed with units of Calpine Corp. (CPN) and General Electric Co. (GE).

Under the 10-year power purchase agreement, Pacific Gas & Electric Co. will take all the output from a 600-megawatt natural gas-fired power plant under development in Hayward, Calif., and jointly owned by Calpine and GE Energy Financial Services. PG&E will supply the gas for the plant.

The plant will use recycled wastewater and combined-cycle technology to use gas-turbine exhaust to generate additional power, according to Calpine.

-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468; cassandra.sweet@dowjones.com