LAFCO moves forward on Clean Power SF planning, approves EnerNex contract and directs letter opposing AB 2145

San Francisco—s Local Area Formation Commission on April 25 authorized consultant contracts to help plan Clean Power SF and directed staff to prepare a letter opposing AB 2145, a proposed state bill that would change community choice aggregation (CCA) from an opt-out to an opt-in model.

The commission approved three contract authorizations together: a time-sensitive task order with EnerNex to assess whether the San Francisco Public Utilities Commission (SFPUC) could operate the CCA program in-house or whether a third-party energy services provider was required; on-call authorizations for San Francisco Community Power; and on-call authorization for MRW & Associates. Chair John Avalos said the actions would allow the LAFCO and SFPUC to "move forward" on questions raised during prior joint meetings.

The commission—s staff presentation said EnerNex—s original proposal was $1,100,000 but that LAFCO negotiated the scope down to tasks deemed necessary for planning, producing a not-to-exceed amount of $210,000 for those tasks. The on-call caps were listed as $40,000 for San Francisco Community Power and $50,000 for MRW & Associates. Staff said the budget included funds for these contracts this fiscal year and in projections.

Barbara Hale, assistant general manager for Power at the SFPUC, told commissioners the immediate consultant task will evaluate operational options and any economies of scale, and may identify whether a program run by SFPUC staff could help ameliorate SFPUC budget shortfalls. Hale also told the commission that the SFPUC had communicated formally and informally with Shell Energy and would provide copies of correspondence when requested.

Public comment supported moving ahead. Eric Brooks of San Francisco Clean Energy Advocates urged urgency on legislative fights in Sacramento and encouraged commissioners to oppose AB 2145, calling it an existential threat to CCA if it passed. Brooks told the commission advocates would provide sample sign-on letters and encouraged LAFCO members to participate in hearings.

Commissioner London Breed asked staff to prepare and send a letter explaining the commission—s opposition to AB 2145 and to make clear that any CCA implementation should not impose fees that would hurt low-income communities. Interim executive officer Alyssa Miller confirmed she would draft and send the letter and coordinate review by the chair and vice chair before submission.

The motion to approve all three contract items was made and seconded on the record and carried without objection. Staff said the initial EnerNex deliverable would be prioritized and the full consultant report was expected by September 2014, with an initial assessment report returned earlier if possible.

Next steps: staff will finalize and circulate the letter opposing AB 2145 for chair review, proceed with contract execution consistent with the authorized not-to-exceed amounts, and bring task-specific authorizations back to the commission before assigning additional budgets for on-call firms.