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Consultants tell LAFCO Hetch Hetchy, cogeneration and transbay cable could materially shape CCA supply
Summary
Local Power presented a draft CCA program report to LAFCO identifying opportunities — including using Hetch Hetchy power, 106 MW of cogeneration potential, tidal resources at the Golden Gate and generation tied to the Transbay cable — and urged legal review, interagency coordination, and aggressive pursuit of CPUC efficiency funds.
Consultants from Local Power presented a draft report to the Local Agency Formation Commission outlining resources and legal/implementation options for San Francisco’s Community Choice Aggregation (CCA) program.
Paul Fenn and colleagues described several major findings: the report assumes a 360‑megawatt local renewable rollout target as part of the CCA implementation plan; it identified a transaction structure the consultants say could allow surplus Hetch Hetchy power to be delivered to CCA customers under the Raker Act; and it cited approximately 106 megawatts of potential cogeneration capacity across roughly 30–40 existing sites (hotels, hospitals and large facilities).
"We have developed a mechanism, a transaction mechanism by which the CCA program, in our opinion can legally make Hetch Hetchy power accessible to the CCA customers as a part of the CCA program," a Local Power presenter said, and the team described a "split delivery" or wheeling arrangement that would rely on existing wholesale distribution tariffs and open access rules. Local Power emphasized this is a concept that requires a full legal memo and coordinated review with the SFPUC and the City Attorney because ongoing litigation and the PG&E interconnection agreement could affect feasibility.
Barbara Hale, assistant general manager for power at the SFPUC, told the commission the PUC has concerns and urged careful coordination. Local Power repeatedly recommended involving the city attorney’s office and the SFPUC to resolve legal and interconnection questions before the concept is incorporated into implementation plans.
The report also urged further investigation of the Golden Gate tidal resource: Local Power recommended physical three‑dimensional under‑bridge measurements because prior studies relied on modeling and may understate the resource. The team argued that if developed at scale, tidal or offshore resources could be cost‑effective and recommended keeping the option open for Phase 2 of the rollout.
On distributed generation, Local Power and the Department of the Environment cited roughly 106 megawatts of cogeneration potential in the city and suggested streamlining permitting and bundling interconnect applications to make projects feasible. On solar, the report recommended integrating existing rebate programs and exploring community/shared solar models and bulk procurement to expand access to renters and owners alike. For urban wind, consultants said permitting and height restrictions are the main barriers and recommended overlay districts and new rezoning ideas for commercial/industrial windy corridors.
Financing recommendations included use of the 2001 H bond authority and exploring Mello‑Roos or other municipal financing tools to cover distribution and transmission investments (including potential lines to connect Golden Gate tidal or Delta wind resources). The report flagged AB 117 (CPUC public goods charge funds) as a key near‑term opportunity, urging the city to apply to administer energy efficiency funds to avoid a funding gap during transition from PG&E administration.
Local Power concluded by asking to return for further discussion and legal coordination; LAFCO staff and commissioners agreed to request more detail, suggested Local Power assist in drafting questions for the city attorney, and continued the item to the next meeting for follow‑up with SFPUC and legal staff.
Next steps: Local Power will coordinate with SFPUC and the city attorney for legal review on Hetch Hetchy transactions; LAFCO staff will consider targeted follow‑up questions and schedule the item for continuation.
