SFPUC continues Clean Power SF negotiations, directs expanded local-buildout work and approves consultant extensions

San Francisco — The San Francisco Public Utilities Commission on a detailed debate decided to continue negotiations on the Clean Power SF community choice aggregation (CCA) program and to advance planning for local renewable build‑out, while deferring final approval of contract execution until outstanding regulatory and financial questions are resolved.

Commissioners and staff spent more than two hours on the proposed 4.5‑year term sheet that would let the city offer a 100% renewable generation product to enrolled customers. General Manager Ed Harrington and CCA Director Mike Campbell framed the proposal as a phased launch: an initial tranche sized to about 75,000 residential accounts (roughly 30 megawatts) to limit opt‑out risk, with capacity to expand by geographic phasing and later procurement.

The presentation included financial estimates from CFO Todd Reedstrom showing an indicative program budget of roughly $30 million–$40 million per year, and staff outlined reserve requirements they expect to need to place on contract signing: a program reserve (indicative $2.5 million–$3.5 million) and an operating reserve ($500,000–$1.5 million), plus a rate‑stabilization reserve planned to accumulate over time from a small surcharge in rates. Reedstrom said the sample household impact for a small user (tier 1) would be on the order of $7 a month to move from PG&E’s current mix (~16% renewables) to a 100% renewable option, and the city would not include profit in the pro formas.

Despite staff optimism, several commissioners pressed for more conservative steps. Commissioner Gaines urged a smaller initial rollout and an “escrow” or staged approval so the full program (contracts, bonding, risk caps and any third‑party agreements) returns to the commission together. Vice President Moran and Commissioner Kane emphasized limiting city liability and making clear that participating customers would bear program costs if reserves proved insufficient; commissioners also pressed staff for analyses of the CPUC‑required bond and potential default scenarios.

The term sheet under discussion would have Shell Energy North America (referred to in staff materials as Shell Energy) act as a wholesale supplier and scheduling coordinator, with a separate firm (Noble Americas or an equivalent) proposed for customer service and call‑center operations. Staff described options to substitute city‑owned generation (for example, Hetch Hetchy output) into the supply mix via market‑price substitution so municipal resources could be integrated as they come online.

Public commenters including representatives of San Francisco Green Party, Global Exchange and labor advocates urged stronger emphasis on a local build‑out strategy to accelerate local renewable projects and create union jobs in the city. In response, commissioners unanimously approved a no‑cost, one‑year extension of two existing power‑enterprise consultant agreements (CS920RA and CS920RB) to provide monitoring, advisory and local‑buildout planning services while staff refines the program design with stakeholders.

Action and next steps: The commission did not vote to execute a final supply contract at the meeting. Instead, it directed staff to continue negotiating the term sheet, to work closely with LAFCO and community stakeholders on enrollment strategy and local‑buildout specifics, and to return in September with a more complete packet (including proposed reserve appropriations, final contract parameters and any CPUC guidance on the performance bond). The commission also authorized the general manager to continue negotiations consistent with parameters discussed but retained final contract execution authority for a later date.

Votes at a glance: The commission voted to continue discussion and negotiation of the CCA term sheet (no contract execution) and voted to approve the one‑year, no‑cost contract extensions for consultant support on local build‑out; both actions passed by voice vote.

The commission’s next substantive CCA review is expected in September, when staff will present revised term‑sheet language, refined reserve and bond proposals, and an updated customer‑enrollment plan.