Clean Power SF lays out growth-plan options; staff warns PCIA and portfolio choices will shape affordability
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Summary
Clean Power SF staff presented growth scenarios to expand service citywide, saying renewable supply is available but portfolio management, financing choices and the Power Charge Indifference Adjustment (PCIA) pose significant risks to rates and timing; staff will return with pro forma analyses and recommendations in the spring.
Clean Power SF staff on Wednesday gave commissioners a second workshop on options for expanding the municipal community-choice program citywide, presenting demand forecasts, supply assumptions, financing approaches and an analysis of regulatory risks that could affect affordability and rollout timing.
Mike Hayams, Clean Power SF Director, framed the challenge as scaling from the program—s current roughly 60‑megawatt size to a citywide operation that could serve as many as 335,000 accounts. He emphasized that residential accounts represent more than 90% of the number of accounts but only about 30% of usage, while commercial and industrial customers account for a smaller share of accounts but a larger share of usage, affecting program margins.
On supply, Hayams said California renewables capacity is growing and that bundled, in‑state products (product content category 1) remain the program—s priority, though they typically carry a price premium. He proposed a portfolio that balances long‑term contracting and an open market position to manage collateral, price exposure and opportunity. For local development, staff favors power‑purchase agreements (PPAs) with private developers as the most cost‑effective near‑term path given federal tax incentives, while not ruling out publicly owned build options in the longer term.
Financing outreach indicated credit availability and interest among institutions, with the potential to reduce collateral needs through mechanisms like a lockbox. Hayams said regulatory affairs, especially the Power Charge Indifference Adjustment (PCIA), remains the largest regulatory threat to CCAs and that Clean Power SF is actively engaged in CPUC working groups to seek reforms.
On operational readiness, staff reported a current Clean Power SF operating budget of about $5.7 million and identified priority near‑term staffing needs in power contracting, portfolio management, account management and regulatory affairs. The commission asked staff to return with timeline scenarios, staffing estimates and pro forma financial results; staff said it will do so and present recommendations in the spring report.
Public commenters and several commissioners urged that local build, job creation and ownership options be included in the plan and that staff consider creative financing blends that could enable public ownership over time.
