San Francisco officials project short delay to Clean Power SF launch as large supplier bids prompt business-plan review

San Francisco officials told a joint Public Utilities Commission (PUC) and LAFCO meeting that the planned spring launch of Clean Power SF is likely to slip by about six weeks as staff completes a more rigorous business plan and processes contracts that exceed city procurement delegation limits.

"We have such a high volume" of bids that the evaluation, due diligence and contract exceptions have lengthened the timeline, Barbara Hale, assistant general manager for power at the San Francisco PUC, said during the Sept. 1 joint meeting. "We received 52 bids" for one category of renewable supply, Hale said, adding that other bid categories included six bids each for firmed-and-shaped products and for resource adequacy.

Why it matters: staff said competitive pricing is available but some of the most attractive offers exceed the PUC's delegated contracting authority and the city's charter threshold, which would require Board of Supervisors approval. That extra step — together with a decision to present a public-facing business plan and a third-party review of risk — is the principal cause of the estimated delay.

Harlan Kelly, general manager of the PUC, described the set of proposals as "a really good problem to have" and said he supported "moving as quickly as possible" while completing necessary reviews. Jason Fried, executive officer for LAFCO, urged the boards to "dual track" the business-plan work and contract approvals so that contract negotiation and…