SFPUC adopts amended resolution to advance Electric Reliability Project, commissioners secure Moran closure condition

The San Francisco Public Utilities Commission on Oct. 31 voted unanimously to adopt an amended resolution to move forward with the San Francisco Electric Reliability Project, including installation of combustion turbine units for in‑city reliability, while seeking written guarantees that the Moran (Potrero) plant will close after Reliability Must‑Run (RMR) arrangements end.

The resolution (item 9 on the special‑meeting agenda) covers the proposed combustion turbines and related J Power agreements and permits and adopts findings under the California Environmental Quality Act. General Manager Susan told the commission that a term sheet was executed between the city and Marant (Moran/Merritt/Morant referenced in briefings) that ‘‘agreed to close the Potrero plant, which is the base plant, and the peakers 4, 5, and 6, upon the removal of the RMR,’’ contingent on completion of the electrical reliability program.

Commissioners said the package was improved by negotiated changes that include a contract clause limiting operation to ‘‘reliability needs’’ and a stated plan to decommission the turbines when no longer required under applicable standards and when financially feasible (commissioners discussed a possible 14‑year target). The amendment’s sponsor described an estimated $58,000,000 in savings compared with earlier financing structures and said the ownership approach would allow the city to control shut‑down timing.

Public commenters offered mixed views at the meeting. Joshua Arce, representing several community groups, said there had been ‘‘a lot of disinformation and secrecy, in regard to the terms of the J Power agreement’’ and urged the commission to use Bay Area Air Quality Management District data for emissions presentations. Brian O’Flynn of Defend Bayview Hunters Point said he feared the process had become ‘‘an insider deal’’ and pointed to budget and staffing moves he described as political retaliation; Commissioners asked the city attorney to review applicable procurement restrictions and a recent supervisors’ resolution reported to ban contracts with firms operating in Burma. Several speakers, including Sierra Club representative John Rizzo, urged the commission to pursue renewable alternatives to gas‑fired peakers.

Staff and commissioners emphasized that emissions numbers shown in the staff comparison had been vetted with the Air Quality District and that the proposed LM‑series units are single‑cycle turbines (staff said they cannot be converted to combined‑cycle units). Commissioners requested more granular emissions accounting — segregating Units 4, 5 and 6 from Unit 3 and counting airport peaker hours separately — to make an ‘‘apples‑to‑apples’’ comparison.

On procedural points, some residents urged postponing the vote until the commission’s neighborhood meeting on Nov. 13. Commissioners and staff said they would present at the off‑site meeting and continue outreach; the commission also asked Jesse Blount of the mayor’s office to provide regular updates on negotiations.

The chair called the question and commissioners voted ‘‘Aye’’ with no opposing or abstaining votes; the resolution passed unanimously. The commission directed staff to continue negotiating with counterparties, to provide the requested clarifications (including written commitments on Moran closure), and to report back on implementation and community presentations.

The commission adjourned following the vote.