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Supervisor Wiener proposes giving SFPUC first right of refusal to serve new developments
Summary
Supervisor Wiener introduced an ordinance to give the San Francisco Public Utilities Commission a first right of refusal to be the electric power provider for new developments (generally ten units or more), aiming to convert excess Hetch Hetchy hydro power into retail revenue for infrastructure reinvestment; staff and public asked for clarifications and a needs assessment.
Supervisor Scott Wiener on Thursday told the San Francisco Public Utilities Commission he is sponsoring an ordinance, together with Supervisor Breed, that would give the PUC the first right of refusal to be the power provider for new developments in the city.
Wiener said the measure is intended to increase retail customers for the PUC’s hydroelectric power from Hetch Hetchy, increase revenue available to reinvest in the power enterprise and street-light infrastructure, and is written so the PUC retains discretion over which projects it chooses to serve. “The ordinance will provide the Public Utilities Commission with the first right of refusal, to be the power provider to new developments in San Francisco,” Wiener said during his remarks.
Why it matters: The PUC’s power enterprise faces large, unmet capital needs tied to aging infrastructure and regulatory challenges, according to General Manager Harlan Kelly, who introduced the item. Wiener and staff said converting previously wholesale power sales into retail customers could raise margins and provide funding for repairs and maintenance that the agency has struggled to afford.
Details and scope: Wiener said the draft ordinance contemplates a threshold for applicability and that staff have discussed a 10-unit minimum in the draft language, although the PUC would set final standards. Wiener emphasized the change would not force the PUC to serve projects under the city charter; instead the PUC would decide which developments warrant the agency stepping in. "It does not require the PUC to become the power provider under our charter. The PUC will retain that discretion," Wiener said.
Questions and concerns: Commissioners pressed the sponsor on whether the right of refusal would apply to all developments or only larger projects, and how the proposal would intersect with community choice aggregation (CCA). Wiener said the measure targets new-development customers, not existing customers, and is not mutually exclusive with CCA. Staff said they are working with Wiener’s office on technical amendments to align the ordinance with the PUC’s strategic plan and to allow the agency to prioritize projects that best meet its operational needs.
Public comment and next steps: Public commenter Francisco DeCosta urged a needs assessment before the ordinance is enacted and raised drought and operational concerns for long-term hydroelectric availability, saying legislators may not fully appreciate maintenance demands. Staff confirmed ongoing discussions with Wiener’s office and noted planned staff-proposed edits; the commission suspended further deliberation on the item for later in the agenda. No formal action on the ordinance was taken at this meeting.
