LAFCO hears Clean Power SF update: low opt-outs, 25 MW Shiloh purchase and NEM plans

The Local Agency Formation Commission on the record reviewed progress on Clean Power SF enrollment, outreach and program design and heard staff say the rollout is proceeding with lower-than-expected opt-outs and active plans for a Net Energy Metering (NEM) tariff.

Charles Sheehan, communications manager for Clean Power SF, told commissioners the March 1 enrollment notices produced “a little increase in the number of opt outs as people got their second notice,” totaling about 40 opt-outs out of roughly 7,800 total services so far — a rate far below the program’s modeled 20% opt-out benchmark. Sheehan said 109 customers had early-enrolled in the Super Green product set to begin service in November and described roughly 180–190 merchant-corridor visits and planned district “welcome events” as part of ongoing outreach.

Sheehan said the program has contracted about 25 megawatts from the Shiloh Wind Project in Solano County, owned by Iberdrola Renewables, and that Calpine Corporation will supply a mixed product that includes a tier-1 renewable option and some natural-gas generation located in the Bay Area. “That is what, Iberdrola Renewables owns. I believe it’s either 100 or 150 megawatt project. And so we have contracted for about 25 megawatts,” Sheehan said.

On Net Energy Metering, Sheehan described NEM as the tariff for rooftop-solar customers that governs on-site use and compensation for surplus generation. Commissioners asked whether Clean Power SF’s NEM rates would match PG&E or other CCAs; Sheehan deferred detailed rate comparisons to a later report. Jason Fried, LAFCO executive officer, said the CCA expects to “have a better rate or return for those who overproduce on their solar panels,” which could make the program more financially attractive to some customers.

Commissioners pressed staff on equitable enrollment access. Staff reported developing a paper sign-up form for in-person outreach and said they would evaluate making it a self-mailer or pre-stamped form and would consult the city attorney about any legal or regulatory hurdles for mail-in or volunteer-assisted sign-ups. Sheehan also said the program is reviewing its back-office contractor (referred to as NOBL) and expects that contract to run three years while staff plans a future transition to in-house processing.

Fried briefed the commission on parallel regulatory and legislative matters, including recent CPUC activity on the PCIA methodology and a possible reintroduction of AB 1110. He argued the present PCIA methodology can advantage IOU bundled customers and noted concerns that low-income customers who choose greener products could face higher costs: “let’s not forget the difference that there is a difference between direct access CCA and… the IOUs,” Fried said, adding that LAFCO would stay engaged in proceedings and possible legislative developments.

On administrative business, staff presented a proposed LAFCO budget and said the commission is legally allowed to request up to $297,342 from the City and County of San Francisco; staff recommended accepting $40,000 and returning $257,342 to the city as a precaution. The commission also approved the minutes of the prior meeting.

Next steps recorded in the meeting: staff will return with a final budget for approval at a subsequent meeting; the NEM methodology and any detailed rate comparisons will be reported back at a future LAFCO meeting; and staff encouraged sign-ups at cleanpowersf.org and pledged continued outreach during upcoming Earth Month events.

Form 700 filing for commissioners was also highlighted as an administrative deadline (due April 1), and staff said a draft voter-turnout study should be available for review in the coming weeks.