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SFPUC authorizes two combustion‑turbine projects amid debate over transmission alternatives and neighborhood impacts
Summary
After extended debate over whether transmission upgrades (Transbay cable) or demand‑side measures could substitute, the commission authorized staff to finalize agreements for two combustion‑turbine projects and submit them to the Board of Supervisors; the measure passed 3–1 with one commissioner opposed on environmental‑justice grounds.
The San Francisco Public Utilities Commission on July 24 authorized the general manager to complete negotiations and execute agreements required to develop a proposed San Francisco Electric Reliability Project consisting of a 145‑megawatt combustion turbine planned near Potrero and a 45‑megawatt unit at the airport.
Barbara Hale, the commission's Assistant General Manager for Power, said staff had advanced a term sheet with J Power USA to deliver the project under a design‑build‑own‑operate‑transfer model, and that state and local environmental reviews were in place for components of the proposal (a mitigated negative declaration for the airport site and California Energy Commission certification work for the Potrero portion). Hale and other staff emphasized that the project followed a settlement with Williams Energy and was part of the city's action plan to ensure reliability and enable retirement of older Potrero units.
Commissioners pressed staff on alternatives. Several raised the Transbay cable and other transmission upgrades proposed by PG&E and asked whether those options — or stronger demand‑side measures — could provide sufficient load‑serving capability without building in‑city fossil generation. Staff and the deputy general manager said the California Independent System Operator (Cal ISO) in a July letter had concluded transmission‑only solutions were insufficient to meet reliability needs, and staff said ISO had repeatedly linked Potrero unit retirements to the completion of in‑city generation projects.
Commissioner Werbach argued the decision raised a long‑term moral and equity question about siting new fossil‑fuel infrastructure in Bayview‑Hunters Point and urged delay until alternatives were fully vetted; staff and other commissioners warned that delaying authorization could imperil the project's schedule and the city's ability to meet ISO requirements. Public commenter Espinola Jackson urged commissioners not to site CTs in Bayview‑Hunters Point.
After public comment and final debate, Commissioner Kane moved to authorize the general manager to complete necessary agreements and submit them to the Board of Supervisors for any required approvals; the motion carried 3–1, with Commissioner Werbach recorded as opposed.
The commission's action sends the proposed agreements and CEQA findings forward; staff said the final term sheet and related contracts would be presented to the Board of Supervisors in September for the Board's consideration.
