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SFPUC advances Clean Power SF business plan, authorizes staff to seek BOS approvals and additional loans
Summary
Commission reviewed Clean Power SF’s business plan and policy recommendations (50 MW launch projecting $36M annual revenue; 400 MW full enrollment ~$290M), approved measures to set fund structure and up to $8M of internal loans while staff negotiates supplier contracts, and adopted policy direction on product content, phasing and reserves.
The San Francisco Public Utilities Commission on Friday reviewed and approved a package of policy steps and financing authorizations to advance Clean Power SF, the city’s proposed Community Choice Aggregation program.
Barbara Hale, Assistant General Manager for Power, presented the business plan and risk assessment. Staff modeled an initial enrollment case at about 50 megawatts with $36 million in annual revenue and a full enrollment case at about 400 megawatts with roughly $290 million in annual revenue. The recommended base green product targets 35% renewable content at rates at or below PG&E's generation rate; a 100% "super green" product is proposed at a higher rate.
Staff identified primary risks — higher opt‑out rates, customer mix shifts, and changes in PG&E’s generation rates — and quantified sensitivity scenarios (e.g., a 10% swing in PG&E generation rates has an approximate $2.6 million impact). To mitigate risks, staff recommended fixed‑volume/price contracts for near‑term supply, phased enrollment tied to supply and reserve conditions, and substantial reserve targets: an operating reserve target equal to about 90% of operating expenditures and a rate‑stabilization reserve of about 15% of annual revenues, to be built within roughly three years of launch.
Financial support for launch was outlined: Clean Power SF has a $4 million working capital loan from the Power Enterprise (staff requested authority to extend and amend the repayment terms) and proposed authorization for a supplemental loan of up to $4 million (bringing total potential working capital support to $8 million) from the Power Enterprise fund balance. Staff also discussed securing a letter of credit (illustrative draw figure discussed) to support supplier collateral obligations; staff will return December 8 with detailed contract, collateral and letter‑of‑credit actions.
After extensive commissioner and public discussion on pricing, marketing, local build and bonding to accelerate large‑scale renewable projects, the commission voted to authorize staff to seek Board of Supervisors approval to establish the Clean Power SF fund structure, proceed with necessary enabling legislation, and seek the supplemental loan authority and repayment amendments outlined in Item 18.
Commissioners and public commenters emphasized affordability as a central marketing message and debated phasing criteria, with several urging clear, objective success triggers (reserves, loan repayment, credit availability) that would permit moving to subsequent enrollment phases. Public advocates and industry speakers also urged early adoption of bonding strategies to finance large local build projects and to accelerate the program’s renewable supply goals.
