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LAFCO hears CleanPowerSF update; CPUC bond decision still pending
Summary
SFPUC staff told LAFCO the CleanPowerSF rollout is proceeding toward contract hearings and a program launch after regulatory approval, but the California Public Utilities Commission has not yet set bond rules that will affect start-up requirements. Advocates urged guarantees for local build-out and hiring.
San Francisco’s Local Agency Formation Commission heard an update on the CleanPowerSF Community Choice Aggregation program and on related proceedings at the California Public Utilities Commission. Mike Campbell, director of the Community Choice Aggregation program at the San Francisco Public Utilities Commission, reported that hearings are expected on a proposed contract with Shell and on a supplemental appropriation to support initial rollout, and said a regulatory green light could be followed by three to four months to begin serving customers.
“Given the timing, where we are now, probably takes about, you know, realistically, 3, 4 months from getting the green light to, actually serving customers,” Campbell said. He told commissioners the CPUC had not yet released a proposed decision on bond amounts for CCAs and Direct Access providers: “the update, unfortunately, is that I don't have an update. We still don't have, CPUC has not released any proposed decisions on the bond amount for Community Choice Aggregation or for Direct Access.” He noted that Marin County had posted a $100,000 interim bond and deposited it with the CPUC.
Campbell described the statutory policy behind the CPUC bond requirement: the bond is intended to cover the incremental cost to the incumbent utility if customers return en masse to that utility, and parties are contesting which method the CPUC should use to estimate that potential incremental cost. He said utilities are advocating for a method that could produce large, difficult-to-satisfy bond amounts, while CCAs seek a methodology that accounts for the program’s risk-mitigation measures.
Nancy Miller, LAFCO’s interim executive officer, thanked SFPUC staff for increased coordination with advocates and highlighted ongoing work to “layer in” renewables, local build-out and job-creation requirements. In public comment, Eric Brooks of the San Francisco Green Party and Our City urged that legislation and contracts guarantee integration of local build-out, local hiring and community benefits so that market purchases cannot proceed separately from the physical local build-out.
The item was presented for information; no formal LAFCO action altered CleanPowerSF’s authorization at this meeting. Staff will continue coordination with stakeholders and prepare materials for upcoming hearings.
