Clean Power SF outlines new rates, joined CC Power procurements and signs Corby battery deal
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Summary
Clean Power SF told LAFCO its FY23–24 rates, adopted in May and effective July 1, raise average generation bills about 3–8% amid higher market supply costs but continue to offer modest savings versus PG&E; staff also reviewed CC Power joint procurements and a contract to buy capacity from the Corby battery project with commercial operation targeted June 1, 2025.
Deputy assistant general manager Michael Hyams (introduced) — who also identified himself in remarks as Mike Himes — briefed the San Francisco Local Agency Formation Commission on Clean Power SF’s recent actions and contracts, including rate changes, joint procurements through California Community Power and a new battery storage purchase.
Hyams told commissioners the SFPUC conducted a cost‑of‑service study and the commission adopted new Clean Power SF rates in May that took effect July 1. “The rates reflect a 3 to 8% increase on the total average customer electricity bill for most rate schedules primarily driven by what has been a very large increase in power market supply costs,” he said, and added the program still provides savings relative to PG&E on average for most customer classes.
Hyams reviewed Clean Power SF’s membership in California Community Power (CC Power), a joint powers agency that now includes nine CCA agencies serving roughly 3 million customers. He said CC Power has enabled joint competitive procurements that Clean Power SF could not secure alone, including long‑duration energy storage and geothermal resources. Hyams said, under CC Power procurements, Clean Power SF will purchase a 23‑megawatt share of roughly 125 megawatts of eight‑hour storage capacity and a 20‑megawatt share of up to 140 megawatts of geothermal capacity.
On battery storage, Hyams announced Clean Power SF signed an agreement to purchase standalone capacity from the Corby Battery Storage Project, a four‑hour lithium‑ion system that NextEra Energy plans to build in Vacaville, Solano County, with commercial operation targeted June 1, 2025. He described the Corby project as providing “timely new capacity” to the state grid and said it will help balance intermittent renewable resources and improve operational flexibility. Hyams also stated the project represents “approximately 300 megawatts of new clean energy capacity” in the Bay Area supply portfolio; that larger figure referred to the Corby project overall while Clean Power SF’s contracted share was presented separately in discussion of CC Power procurements.
Clean Power SF staff said they are preparing the 2022 power content label (to be mailed to customers in September after SFPUC commission approval) and are notifying customers of the rate changes through bill messages and a newsletter. Hyams noted year‑to‑year changes in the product mix can be driven by contract expirations and weather impacts such as drought, which affects hydroelectric output.
Commissioners raised safety and regulation questions tied to storage. Jeremy Pollack, LAFCO executive officer, and commissioners asked about fire‑safety concerns; Pollack said the fire department has issued guidance and San Francisco’s rules limit the size of stationary storage installations without additional sprinkler requirements. Commissioners requested future briefings that include fire officials and technical experts.
The item was for discussion only; LAFCO took no formal action on Clean Power SF’s contracts during the meeting.
