SFPUC staff proposes rate realignment for Clean Power SF to preserve savings and shore up reserves

San Francisco Public Utilities Commission staff outlined a plan on May 28 to adjust Clean Power SF generation rates and related credits so customers continue to pay less than PG&E while the community-choice aggregation builds its financial reserves. Michael Hyams, director of Clean Power SF, told commissioners the program has enrolled more than 400,000 customer accounts and has a 3.1% opt-out rate and a 97% participation rate.

Hyams said Clean Power SF sent more than 1,000,000 enrollment notices during the four-month notice period. "Our program opt out percentage is now 3.1% since program launched," he said, and "the super green upgrade rate is also up, to 1.6%, with about 5,900 accounts electing to receive 100% renewable power." Staff explained the proposal against a backdrop of PG&E's delayed 2019 rate filings and the California PUC's staggered implementation of PG&E rate changes.

To keep Clean Power SF prices competitive and consistent across customer classes, the staff proposal would: realign green-product rates to achieve targeted savings versus PG&E (a 5% generation-service savings for residential customers, about 3.5% for small/medium commercial, and 2% for large commercial/industrial); reduce some "super green" premiums (for example, from 1.5' to 1' per kWh for residential); and set the PCIA credit adopted in the commission's December rate action to zero for now so the credit can be used in the future if needed. Hyams said those changes would be implemented only after the commission confirms the general manager's final implementation following PG&E's rate decision.

Staff projected the adjustment would raise Clean Power SF fiscal-year 2019–20 revenues from about $212.9 million to $225.5 million, an increase of roughly $12.7 million (about 5.9%), which staff said would accelerate progress toward funding program financial reserves. Hyams said the commission's goal is to maintain a consistent margin of savings within each rate class "and it will deliver savings to customers compared to what they would pay PG&E."

Commissioners asked for a later update on opt-out survey results and the rationale behind customers' decisions to opt out. Hyams said staff surveys opt-outs and will report back; he summarized the biggest reasons as cost concerns, skepticism about local government's role, and satisfaction with the status quo.

Next steps: staff will monitor PG&E's final rate decision and return to the commission with a formal action to confirm the general manager's implementation plan. The commission did not adopt new Clean Power SF rates at this meeting; staff emphasized the timeline depends on when PG&E's final rates take effect.