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SFPUC authorizes next steps for 'Clean Power SF' supplier talks; Commissioners ask for detailed contract metrics

San Francisco Public Utilities Commission · February 9, 2010
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Summary

The Commission authorized staff to prepare a Community Choice Aggregation implementation plan and to begin negotiations with the top-ranked proposer (Power Choice LLC). Commissioners insisted on seeing contract-level pricing, renewable targets and workforce commitments before final approval.

The SFPUC voted Feb. 9 to authorize staff to prepare and file a Community Choice Aggregation (CCA) implementation plan and statement of intent with the California Public Utilities Commission and to begin formal negotiations with the top-ranked supplier proposal to provide electricity to Clean Power SF customers.

Mike Campbell, director of the Clean Power SF program, reminded commissioners that AB 117 requires an implementation plan and statement of intent for CPUC certification. He said staff is pursuing an expedited timeline using precedents from Marin and San Joaquin counties and will seek Board of Supervisors approval as required by local ordinance.

The Commission separately authorized negotiations with Power Choice LLC, the highest-scoring respondent to the procurement RFP. Campbell said Power Choice proposed a program that would work toward significant renewables — staff cited a proposal commitment of roughly 51 percent renewable by 2017 — and a strategy aimed at developing in-region projects. "They have a strong commitment and are committed to working with us for the development of renewable generation and trying to get as much renewable generation as possible within San Francisco," Campbell said.

Commissioners asked for clarity on how renewable benchmarks, local-generation targets and workforce outcomes would be written into a final contract and requested the contract and a full rate package be returned for Commission review before any final award. Staff said the implementation plan and statement of intent are preliminary statutory filings and that detailed performance, pricing and risk allocation will be negotiated and presented to the Commission for approval; staff said their target for a negotiated contract presentation to the Commission is in the March–April timeframe.

Several public speakers urged rapid action to meet local demand for cleaner power. Other speakers — including the San Francisco Chamber of Commerce and a unions representative — urged caution, citing cost and job impacts and seeking clearer workforce protections. Staff emphasized the process will include four statutory opt-out notifications to customers and that the PUC will run an informed outreach campaign.