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PUC approves lower Clean Power SF generation rates and discusses rapid citywide growth plan
Summary
Commissioners approved revised Clean Power SF generation rates (effective July 1, 2017) to keep prices competitive after PG&E and PCIA changes and reviewed a staff growth plan to complete citywide enrollment by fiscal 2019 and target 50% renewable content for the green product by 2020.
The San Francisco Public Utilities Commission on April 11 adopted revised Clean Power SF generation rates and reviewed staff recommendations for a rapid expansion of the community-choice aggregation program.
Eric Sandler, chief financial officer, said staff proposed reducing the green-product generation rate by an average of about 4% and lowering the Super Green premium for commercial customers from $0.02 to $0.014 to keep the program competitive after PG&E and PCIA (Power Charge Indifference Adjustment) adjustments.
"We set Clean Power SF generation rates so that, when you add the PCIA and franchise fee, a customer would pay about a quarter percent less than if purchasing generation directly from PG&E," Sandler said.
After discussion and public comment, the Commission moved and approved the rate changes. Staff said the action would reduce operating margin and slow deposits to a rate-stabilization reserve but still preserve capacity to repay loans to the Hetch Hetchy enterprise and fund an operating reserve.
In a separate workshop (Item 11), Barbara Hale (assistant general manager, Power) and Mike Himes (director of Clean Power staff) outlined a growth plan that accelerates citywide auto-enrollment to be completed by the end of fiscal 2019 (previously projected for 2022). Staff estimated growth from approximately 75,000 accounts and $38 million in revenue today to roughly 335,000 accounts and $240 million in revenue at full scale.
Key staff recommendations included issuing RFPs by July for third-party financing (to provide collateral support for power-purchase agreements) and for power supply offers, adopting a target of 50% renewables in the green product by 2020, and hiring additional staff (projecting Clean Power SF-funded positions rising to 52 FTEs at full scale).
Himes warned the Commission that the PCIA is the program’s greatest near-term risk because the exit fee is outside PUC control and can materially affect competitiveness. Staff estimated $40–$60 million in collateral requirements to secure PPAs and roughly $80 million to fund working capital and rate-stabilization reserves at full scale; they said third-party financing capacity appears available.
Public commenters (including Eric Brooks, Jed Holtzman, Jason Fried and Sierra Club representatives) generally supported the rate adjustment and urged a concrete local build-out plan to secure future bucket‑1 renewable resources and avoid overreliance on market purchases. Several speakers asked the PUC to extend its MOU with LAFCO and to accelerate enrollment where procurement permits.
The Commission did not take further action on the growth plan at this meeting; staff said potential actions will return for consideration on April 25 and a full written report will be submitted on April 25 with possible policy adjustments on April 25/May 5 timelines.
Next steps: staff will issue financing and supply RFPs by July, finalize the integrated resource plan in summer, and return with any policy changes to implement the 50% green-product target and enrollment schedule.
