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LAFCO advances consultants CCA implementation review, endorses moving report forward

San Francisco LAFCO (Local Agency Formation Commission) · May 23, 2008
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Summary

After a phone presentation from consultant Mike Bell, San Francisco LAFCO voted to move his draft review of the Community Choice Aggregation (CCA) implementation plan forward to the Board of Supervisors and SFPUC, endorsing continued work on procurement, rate competitiveness and customer enrollment options.

A consultant review of San Franciscos draft Community Choice Aggregation implementation plan cleared a key procedural step Friday as the Local Agency Formation Commission (LAFCO) voted to move the draft report forward to the Board of Supervisors and the San Francisco Public Utilities Commission (SFPUC).

Mike Bell of Management Consulting, Inc., who appeared by telephone, told commissioners his review of responses to the SFPUCs request for information supports proceeding with the citys CCA effort. Bell recommended a single-service-provider model to simplify contract enforcement and coordination, urged bidders be given flexibility to phase supply procurement, and said competitive rates relative to PG&E should be an explicit objective.

"I see no reason not to move forward with the CCA," Bell said during the presentation. He cautioned the procurement and evaluation work will be complicated and recommended allowing bidders flexibility to propose staged resource rollouts while giving the citys preference for enrolling all customers concurrently.

The consultant also discussed customer opt-out mechanics and exit fees, recommending clear mandatory opt-out notice windows before any charges apply so suppliers can quantify load and reduce stranded-cost risk. Bell told commissioners that securing long-term assets or contracts may be necessary to deliver a lower initial rate and suggested the RFP include provisions that permit long-term contracting.

Commissioners pressed Bell on timeline expectations and lessons from peer efforts in Marin and San Joaquin counties; Bell said the work likely spans "several months" and reiterated the need for SFPUC staff engagement and technical input. After public comment from community advocates and brief commissioner debate, the commission moved and seconded a motion to send the report on for consideration by the board and SFPUC.

Next steps noted during the meeting include finalizing the draft report for formal distribution and proceeding with the RFQ/RFP process with the procurement preferences and evaluation guidance Bell recommended. No binding contract award or final staffing decision was made at the LAFCO meeting.