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PUC advances Clean Power SF timeline; staff says procurement, not-rates, are critical path

San Francisco Public Utilities Commission · February 24, 2015
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Summary

The San Francisco Public Utilities Commission reviewed a proposed Clean Power SF launch schedule that targets serving customers in early 2016; staff said procurement and California PUC approvals drive the critical path, while public speakers urged faster drafting of RFOs and immediate outreach.

The San Francisco Public Utilities Commission on Feb. 24 reviewed a proposed timeline for Clean Power SF, a community choice aggregation program the PUC is planning to launch to give customers a local clean-energy option. Barbara Hale, Assistant General Manager for Power, said the schedule is “realistic” and that the project’s critical path is tied to competitive procurement, load analysis and approvals by the California Public Utilities Commission and the Board of Supervisors.

Hale told the commission that the program is designed to lead with affordability and that the initial benchmark for a not-to-exceed rate is PG&E’s default basic service rate. She said procurement planning and a proposed reform of the PUC’s contracting process will be presented as program design guidelines in mid-April, followed by procurement and then final rates set after market offers are received in late September–October. The timeline includes statutorily required opt-out notifications to customers in the late-November through mid-January window and aims to begin serving customers in early 2016.

Public speakers and commissioners pressed staff about execution and speed. Supervisor John Avalos urged the PUC to work with the mayor and the Board of Supervisors to “move this process quicker” and recommended close coordination with the city attorney. Jason Fried, Executive Officer of LAFCO, recommended drafting the request for offers (RFO) while approvals proceed so the procurement step can begin immediately. “The key part is getting to the power procurement contracts and getting those actually signed,” Fried said.

Advocacy groups urged the PUC to make immediate staffing decisions to sustain the timeline. Eric Brooks of the San Francisco Green Party and Clean Energy Advocates said the commission should consider rehiring Kim Malcolm to accelerate implementation and urged the ratepayer advocate committee be provided the “not to exceed” rate so build‑out planning and job estimates can begin.

Commissioners asked staff to clarify who will lead day‑to‑day program management and whether procurement will be handled internally or by outside vendors. Staff said procurement responsibility will be internal but that some professional services (billing integration, settlement verification and other back‑office functions) will continue to be provided by outside contractors. Staff also committed to present a more detailed program design in April and to return after market responses to establish final rates.

What happens next: program design guidelines and contracting reform proposals will be presented to the commission in mid‑April; procurement and market offers would follow under the proposed schedule, with final rates and statutory opt‑out steps completed before a planned early‑2016 launch.