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San Francisco PUC vote to set Clean Power SF 'not-to-exceed' rate fails after hours of testimony
Summary
After hours of public testimony from labor groups, environmental organizations and community members, the San Francisco Public Utilities Commission failed to approve a motion to adopt a not-to-exceed rate of 11.5¢ for Clean Power SF. Supporters said passing the rate was necessary to launch the community choice aggregation program; opponents cited labor, local-build and CEQA concerns.
The San Francisco Public Utilities Commission on Aug. 13 declined to set a not-to-exceed rate of 11.5¢ for Clean Power SF after a lengthy public hearing that drew labor unions, environmental groups, community organizations and city officials.
Commissioner Francesca Vita moved to approve the 11.5¢ not-to-exceed rate, saying the vote was a “historic moment” for the PUC and the city, and that the rate would let San Francisco launch a community choice aggregation (CCA) program aimed at reducing greenhouse-gas emissions while creating local green jobs. “This is only a not-to-exceed rate vote,” Vita said when she offered the motion.
Why it mattered: Approving rates is a necessary procedural step for the PUC to implement Clean Power SF and — by the staff’s account — enable negotiations and contracts needed to launch service. Supporters argued that further delays would increase costs and stall a program the Board of Supervisors had previously authorized.
Supporters urged approval. Jeremy Pollock, legislative aide to Supervisor John Avalos, read a statement urging prompt approval so the program could move forward, noting the Board of Supervisors’ prior support. Representatives of Marin Clean Energy, the Sierra Club and other environmental organizations said passing the rates would unlock local-build planning and investment that could expand renewable generation and local jobs. “You have an opportunity to make that happen and start things moving forward with Clean Power SF,” a Marin representative told the commission.
Labor and process concerns. Representatives of IBEW Local 1245 and allied labor groups protested elements of the staff proposal, particularly the choice of Shell Energy North America as an initial supplier and the program’s reliance on unbundled renewable energy credits. Hunter Stern of IBEW Local 1245 said unions supported renewable energy but pressed for clearer commitments that local projects and project-labor agreements would provide union jobs. Legal counsel for IBEW warned the commission might face CEQA obligations and argued the environmental review implications deserved closer scrutiny.
Staff and legal framing. Assistant General Manager Barbara Hale and Clean Power SF director Kim Malcolm told commissioners that staff had met repeatedly with labor and community stakeholders; Hale said that city rules constrain the PUC’s ability to restrict procurement exclusively to unionized California facilities. City Attorney staff told commissioners that a 2012 board resolution authorized the general manager to execute a short-term contract with a supplier such as Shell but that adopting rates is a separate, prerequisite condition.
Commission action. After public comment and commissioner deliberations that focused on labor protections, local build-out detail, fiscal risk and legal obligations, the commission voted on Vita’s motion to approve the not-to-exceed rate of 11.5¢. The chair announced, “Motion fails.” The record shows the motion did not obtain the votes required to carry the measure at that time.
What’s next: Commissioners moved into closed session for legal and real-property matters. Several commissioners said they want continued staff work on labor standards, concretely spelled-out local build-out plans, and clarification of CEQA and fiscal risk before bringing a rate-setting motion back to the commission.
