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Committee backs forwarding Clean Power SF amendment to add battery storage at Blythe 4
Summary
The Budget & Finance Committee heard SFPUC staff and NextEra representatives describe an amendment to the Clean Power SF purchase agreement adding battery storage at the Blythe 4 solar project and increasing costs; the committee forwarded the amendment to the full Board with a positive recommendation.
The Budget & Finance Committee on Oct. 27 considered a resolution amending the Clean Power SF power purchase agreement with Blythe Solar IV LLC to add battery storage capability to the Blythe 4 project. The clerk introduced the item as an amendment that would add energy storage and increase the contract by approximately $83,000,000 for a total not-to-exceed amount of approximately $220,200,000, with a commencement date in October 2022 and no change to contract term.
Mike Himes, deputy assistant general manager for the San Francisco Public Utilities Commission's power enterprise, told the committee the amendment modifies an existing, competitively awarded commodity contract and that the original solicitation included social impact partnership terms and prevailing-wage requirements. Himes said the SFPUC cannot dictate specific social-impact beneficiaries or payment amounts because those were established through the competitive bid process.
Representatives from NextEra Energy Resources, including Jennifer Knott, described past community benefits tied to Blythe projects and said the developer accelerated some benefits to meet local COVID-related needs. Knott said NextEra will include a requirement in the upcoming construction bid that subcontractors use union labor.
One public commenter, Jennifer Aguilar (calling in from Blythe), spoke in support of the project. After discussion the committee voted to forward the item to the full Board with a positive recommendation (roll-call vote recorded 3 ayes).
