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Clean Power SF lays out IRP and local procurement plan, flags customer‑loss risk from direct access
Summary
Clean Power SF told LAFCO it has enrolled more than 400,000 accounts, outlined an Integrated Resource Plan and a regional RFO for local renewables, and warned that new direct‑access rules will remove some commercial volume from the program starting in 2021.
San Francisco Local Agency Formation Commission — Clean Power SF officials on Sept. 20 briefed LAFCO on enrollment, regulatory risks and a local renewable‑energy procurement plan that will feed an Integrated Resource Plan (IRP) due in 2020.
"We've now enrolled more than 400,000 accounts in San Francisco," Michael Himes, director of the Clean Power SF program at the San Francisco Public Utilities Commission, told commissioners, adding the program currently has a 3.5% opt‑out rate and a 1.7% "super green" upgrade rate that represents more than 4% of sales. Himes said Clean Power SF has largely reached enrollment capacity and is engaging remaining large commercial accounts individually.
Himes warned of market and regulatory headwinds. He said Senate Bill 237 expands direct access for commercial customers and that roughly 70,000 MWh of current Clean Power SF usage is expected to join the direct‑access market in 2021. "So this is a risk, and it's something we're paying close attention to," he said, noting the city is watching the CPUC's report and potential further market opening.
The presentation detailed three additional regulatory items: proceedings on proactive de‑energization (public safety power shutoffs), resource adequacy shortfalls and PCIA/PCIA methodology changes. On shutoffs, Himes said the PUC proceeding focuses on coordination with local government and protections for people medically dependent on electricity. On resource adequacy, he described a proposed "central buyer" model as a market backstop to procure capacity when individual sellers cannot meet regulatory obligations.
Local investment and the IRP formed the core of the briefing. Himes defined "local" to include demand‑side measures in the city and larger supplies across the nine Bay Area counties. He described the IRP as a 20‑year forecast that will optimize portfolios for affordability, reliability, greenhouse‑gas reduction and local investment, and said the program is planning toward the city's goal that Clean Power SF supply be 100% renewable and greenhouse‑gas free by 2030. The IRP work began in July and will inform a 10‑year capital plan to be delivered to the Board of Supervisors.
To accelerate local projects, Clean Power SF issued an RFO on Aug. 12 seeking eligible renewable bids primarily in the NP‑15 (Northern California) region, with a preference for projects within the nine Bay Area counties. Contracts could run up to 25 years with deliveries beginning as early as January 2021 and as late as December 2024. Himes said bids were received Sept. 4, shortlisting was delayed one week for additional data and negotiations are expected to begin in October.
Public comment from Eric Brooks (San Francisco Clean Energy Advocates) urged the agency to produce a proactive, Sydney‑style local build‑out plan that names projects to be developed rather than relying solely on market RFOs. Himes and staff said the RFO and IRP are intended to create near‑term local procurement opportunities and that staff will continue to pursue local preferences and city‑owned project opportunities.
Next steps: Clean Power SF will continue IRP work through early 2020, prepare a draft renewable energy plan in December and seek stakeholder feedback in the first quarter of 2020 before finalizing plans for submission to the California PUC.
