SFPUC workshop outlines Clean Power SF growth plan, flags PCIA and lockbox tradeoffs

Clean Power SF staff told the San Francisco Public Utilities Commission on Monday that the community choice aggregation program has enrolled thousands of customers and is preparing a detailed growth plan to speed expansion while managing financial and procurement risks.

Assistant General Manager Barbara Hale and Clean Power SF Director Mike Himes said the program is serving new customers from recent fall enrollments and expects roughly 73,000 customer accounts once the current phase is complete, with an opt‑out rate near 1.5 percent for that group. Staff reported the program launched in May 2016 and has secured start‑up financing including an $8 million working capital loan and a $17 million letter of credit provided by JPMorgan to back power‑supply transactions.

Why it matters: commissioners and public commenters said accelerating local renewable development and raising program green content are central to meeting the city’s greenhouse‑gas goals while preserving rate competitiveness. Staff said those considerations are core to the growth plan, which will recommend an enrollment schedule, financing approach, staffing and systems needs, and an integrated resource plan covering a 20‑year horizon.

Staff outlined three financing and procurement choices that will shape pace of growth. Clean Power SF used a letter of credit to secure initial supplies to obtain competitive supplier bids; other recent California CCAs used a multiparty lockbox or cash to secure supplier payments. Himes said lockboxes have helped rapid scale elsewhere and staff will evaluate lockbox options, reserve levels, and whether revised collateral or reserve policies could support faster expansion without risking supplier access.

Regulatory risk centers on the PCIA and CPUC decisions. Hale said transmission and PCIA outcomes in an upcoming California Public Utilities Commission decision could affect Clean Power SF rates. Staff is actively participating in CPUC working groups on PCIA methodology and preparing legislative options to address cost allocation between investor‑owned utilities and CCAs.

On supply mix, staff said the green default product is currently projected to include about 40 percent bundled California renewables and roughly 36 percent from hydro/other greenhouse‑gas‑free sources, yielding an estimated 76 percent GHG‑free content for that product. A three‑year Calpine contract supplies a remaining portion of the portfolio; commissioners pressed staff to analyze scenarios that accelerate removal of fossil‑fuel generation while maintaining affordability.

Public comment urged quicker local build‑out and broader program offerings. Eric Brooks of San Francisco Clean Energy Advocates said the program should move from buying renewables to building them locally and integrate efficiency, demand response and electric‑vehicle programs. Jason Freid of LAFCO suggested revisiting resource restrictions that staff currently applies so the program can procure a wider set of renewable resources and pursue EV incentives and charging‑infrastructure pilots.

What’s next: staff will continue growth‑plan development by subject area and return with a synthesized recommendation early next year that addresses financing (including lockbox analysis), reserve policy, staffing, procurement, and an enrollment timetable.

Quotes: “We launched the program with competitive rates and we’re delivering a product featuring more renewable energy and fewer greenhouse gases,” Mike Himes said. “Lockboxes appear to be a key ingredient to allowing more rapid program scaling,” he added.

The commission had no action item on the workshop; staff will return with follow‑up materials and a final plan.