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SFPUC outlines PG&E bankruptcy impacts, CPUC PCIA reform and potential financial exposure for CCAs
Summary
SFPUC staff told LAFCO the PG&E Chapter 11 filing briefly delayed remittances to CCAs but payments resumed Feb. 4; CPUC PCIA reforms and potential prepayment or auction mechanisms are under review and could materially affect Clean Power SF costs.
San Francisco Public Utilities Commission staff told the Local Agency Formation Commission on Feb. 22 that PG&E's Jan. 29 Chapter 11 filing briefly interrupted remittances to community choice aggregators but that a court order on Jan. 31 authorized continued remittance and that payments to the city resumed Feb. 4.
"A delay of remittance did in fact occur, starting with the day of the filing," Michael Hyams said. He added that, to date, Clean Power SF has seen no other operational impacts related to the bankruptcy but that staff will continue monitoring PG&E performance and payments.
Hyams summarized CPUC activity tied to the Power Charge Indifference Adjustment (PCIA) and exit-fee methodology. He said the CPUC issued a phase-1 decision on methodology last October and began phase 2 of the proceeding earlier in February to consider implementation details such as an annual true-up, PCIA prepayment, portfolio-management review and potential allocation or auctioning of PG&E resources to CCAs. "That in theory can go either direction," Hyams said, meaning the mechanism could increase or reduce exit fees depending on market conditions.
During commissioner questions, staff estimated the aggregate PCIA-related exposure to Clean Power SF "on the order of $80,000,000 per year" and offered to provide a precise figure through the executive officer. Barbara Hale, assistant general manager for power at SFPUC, explained San Francisco submitted its own filing to the CPUC on some matters and that several CCAs filed independently or jointly in related proceedings.
SFPUC staff said they filed comments in CPUC rulemaking on PG&E corporate governance and public-safety concerns and urged that ratepayers not bear costs for wildfire damage caused by PG&E. The city's comments also urged consideration of public-ownership alternatives as part of broader CPUC review.
Commissioners and the public asked staff to return with detailed PCIA calculations and a legislative/watch-list spreadsheet that highlights bills of particular interest to Clean Power SF.
