SFPUC approves Clean Power SF master contract with new language committing to local build-out planning

The San Francisco Public Utilities Commission on December 13 approved a master supply contract with Shell Energy as the foundation for the city’s Clean Power SF community choice aggregation (CCA) program, adding substitute language that commits the PUC to a local renewable build‑out plan and requires environmental review and SFPUC approval before the contract’s final confirmation.

The vote follows a multi-hour presentation by Mike Campbell, director of the Clean Power SF program, who described the master contract as the document that will establish the substantive commercial terms and asked commissioners to authorize the general manager to submit the agreement and a request for a $19.5 million supplemental appropriation to the Board of Supervisors. Campbell said a later confirmation agreement would set final launch dates, pricing and product mix.

The move came after sustained public testimony from environmental and community groups and Supervisor David Campos, who urged stronger written commitments to local energy development and job creation. Supervisor Campos told the commission, “I would not be here today … if I did not feel that there was a commitment on the part of the PUC to have a strong, robust local build out.” Commissioners and advocates pressed staff to add explicit language to the resolution that ties final contract approval to completion of local‑build studies, identification of sufficient revenues, environmental analysis and SFPUC approval of a plan, budget and timeline. Staff and the city attorney reviewed and substituted the language during a short recess; the commission voted in favor of the substitute resolution.

Public advocates had urged amendments making final contract approval conditional on outcomes of work funded to evaluate local build‑out options, warning that launching without such a plan risks high opt‑out rates and limits the city’s ability to finance local projects. The Sierra Club’s Michelle Myers and other speakers recommended adding a condition that final approval be contingent on “an express plan for local build out, including rates that reflect that plan and a rollout that retains the maximum number of customers in the rate base.” SFPUC staff said the contract includes substitution language that allows for incorporation of new local generation as it becomes available, but does not compel one method of integration.

The substitute resolution directs the general manager to transmit the amended contract package and an explanatory transmittal letter to the Board of Supervisors for consideration, and it authorizes the general manager to continue negotiations on related term sheets (including a data/transaction term sheet with Noble Americas). The resolution also leaves in place conditions precedent such as obtaining CPUC certainty on bond requirements and having required back‑office arrangements (e.g., meter and billing interfaces) in place before launch.

The commission’s action does not by itself finalize the supplier relationship; staff must return with the confirmation agreement and a final set of approvals before the program can launch. Campbell told the panel that, assuming parallel approvals by the Board of Supervisors and timely CPUC action on bond policy, the program could begin enrollment in the July–August timeframe. He also said staff would return to the commission for further approvals of final pricing and opt‑out notices.

What happens next: SFPUC staff will transmit the amended resolution and proposed master contract to the Board of Supervisors, continue negotiations on the Noble Americas term sheet for data services, and prepare a confirmation agreement with final pricing and launch dates for future commission action. The substitute resolution also directs the SFPUC to approve a plan, budget and timeline for local build‑out and to complete required environmental review before committing to specific physical projects.