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SFPUC's Clean Power SF staff: contracts near Board review; CPUC bond method still pending
Summary
San Francisco Public Utilities Commission staff reported contracts with Shell (power supply) and back-office provider Noble Americas are moving toward finalization and Board of Supervisors review, but the CPUC's method for calculating a required CCA supplier bond remains unresolved and could delay launch.
San Francisco Public Utilities Commission staff told the Local Agency Formation Commission on Jan. 27, 2012, that the city's Community Choice Aggregation program (Clean Power SF) is nearing key contract approvals but remains contingent on a CPUC decision about a bond-calculation method.
Mike Campbell, director of Clean Power SF at the SFPUC, said the Board of Supervisors is expected to take up two major items likely in February: a power-supply contract with Shell and a supplemental appropriation to cover collateral and contingency funds needed for launch. He said staff is also finalizing a back-office services contract with Noble Americas and expects to extend an existing service agreement with PG&E to cover the launch period.
Campbell flagged a separate, consequential regulatory issue: state law requires CCAs to post a bond that would cover the incremental cost to the utility if a CCA terminated and returned customers en masse. He said the California Public Utilities Commission has not yet issued a proposed decision specifying the calculation method and that the matter has been under submission after hearings; the CPUC's timeline could be "at least a month, maybe more," Campbell said.
Nancy Miller, LAFCO's interim executive officer, told commissioners the hearing officer has had the bond issue under submission for months and recommended that LAFCO direct staff to prepare letters to the city's state representatives and the CPUC asking for timely action; the commission agreed to authorize staff to draft the letters and for the chair to sign.
Why it matters: The way the CPUC sets the bond calculation could materially affect the financial requirements for any CCA supplier and thus the timing and cost of Clean Power SF's launch. LAFCO and the SFPUC said they will continue coordination with the Board of Supervisors and explore joint meetings where useful.
Public comment: Eric Brooks (San Francisco Green Party/Our City) urged caution on timing, said advocates have been preparing for launch after eight years of ordinance work, and suggested broadband and smart-grid planning could and should be coordinated with CCA implementation.
Next steps: The Board of Supervisors likely will hear contract approvals in February; LAFCO staff will draft letters to the CPUC and state representatives asking for action on the bond-method decision and will return to the commission with updates and potential joint-meeting dates with the SFPUC.
