Board member introduces ordinance formalizing settlement to close Potrero power plant

Supervisor Sophie Maxwell introduced an ordinance authorizing a settlement between the City and County of San Francisco and Mirant Corporation, the operator of the Potrero power plant in southeast San Francisco, that the city says will clear regulatory hurdles and lead to closure of the plant by the end of 2010. The settlement also includes a $1,000,000 contribution from Mirant for public health and neighborhood improvement programs and a commitment not to seek retrofits of Units 4, 5 and 6.

The settlement "marks a very significant point along the way," Supervisor Sophie Maxwell said, praising community members who pushed for closure and staff who worked on legal and technical details. Maxwell credited the city attorney and the city energy team with providing legal and technical leverage that brought the company to negotiate, and she said the city will continue to press the California Independent System Operator (Cal ISO) on local capacity requirements.

Maxwell told the Board the city had pursued multiple paths before reaching this settlement, including challenges to water permits, enforcement of emission standards, opposition to expansions and work through a city-sponsored community technical (CT) plan. She described the settlement as the likely final hurdle in a long-running effort focused on public health and environmental justice in affected Southeast San Francisco neighborhoods.

The settlement terms, as described in the introduction, require Mirant to work with the city to obtain state and federal regulatory clearances needed to cease operations at the Potrero facility and to refrain from retrofitting the plant's listed units. Maxwell said the company will provide $1,000,000 for public health and neighborhood-improvement programs to assist communities affected by the plant's past operations.

Maxwell said the Board's work will continue after the ordinance introduction, including follow-up with state and federal regulators and engagement with regional grid authorities on local capacity analyses. The item was introduced on the floor for Board consideration; transcript records the ordinance introduction but does not include a roll-call vote on final adoption during the August 18 session.

Background: The Potrero power plant has been the focus of city action and community advocacy for years. Supervisor Maxwell framed the settlement as the product of litigation, permitting challenges, regulatory engagement and community organizing that collectively pushed the operator and regulators toward a negotiated closure timetable.

Next steps: Maxwell asked for the Board's support for introduction of the ordinance and for continued interagency work to secure the regulatory approvals needed to finalize closure.