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Supervisors approve ordinance to sell four city-owned combustion turbines after debate over study of cogeneration option
Summary
The Board approved an ordinance authorizing the Public Utilities Commission to sell four combustion turbines transferred to the city, after a divided vote on an amendment to study giving a turbine to NRG for a cogeneration plant. Supervisors raised environmental, cost and equity concerns tied to a California Energy Commission finding.
The San Francisco Board of Supervisors voted to authorize the Public Utilities Commission to sell four combustion turbines transferred to the city as part of the Williams settlement, finishing action on the ordinance after members debated whether to study a proposal to give a turbine to NRG for a cogeneration plant.
Supervisor Alioto-Pier opposed an amendment to direct staff to study giving a turbine to NRG, saying the idea already had been reviewed by the California Energy Commission. Quoting that report, Alioto-Pier said it found the option “cost prohibitive to the tune of $87,000,000,” and warned of “high potential that air emissions would directly affect residents living in 620 units within a city block” and of “environmental justice concerns in the area due to the low income status of the residents.”
Supporters of leaving a study option on the table said it would preserve a contingency that could help the city pursue municipal energy goals. Supervisor Mercarini said he favored selling the peaker plants but described the proposed study as “a mild and innocuous but yet measured suggestion” that could preserve flexibility if municipal energy plans required it.
The board voted first on a divided portion of the ordinance that included the study amendment; that portion passed on a roll call of 10 ayes and 1 no. The board then voted on the remainder of the ordinance, which passed on a roll call of 11 ayes. The ordinance gives the SFPUC authority to sell the units “in a manner that maximizes public benefits to the city consistent with state agreements.”
Why it matters: Supervisors framed the choice as one between removing city-held fossil-fuel generation that can pollute low-income neighborhoods and retaining contingency options to support long-term municipal energy independence, which could affect future local air quality and energy planning.
Background and next steps: The discussion referenced a February California Energy Commission report that analyzed using a turbine at the NRG steam facility and concluded the option would be cost-prohibitive and could increase net air emissions at that location. The ordinance directs the SFPUC to pursue a sale consistent with state settlement terms; subsequent steps and sale timelines were not specified in the meeting.
Votes and outcome: The divided amendment passed 10–1; the remainder of the ordinance passed 11–0. No mover/second were recorded in the public roll call presented at the meeting.
Further reading/related items: Supervisors also discussed shutting down the Potrero power plant and the city’s interactions with the California Independent System Operator (CAISO) in fall reviews, but no new CAISO actions were directed at the meeting.
