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Committee backs SFPUC request to allow comparative‑fault indemnity for Moccasin Powerhouse contract
Summary
The committee voted to forward to the Board an SFPUC request to allow comparative‑fault indemnity language in a design‑build contract with GE Renewables for the Moccasin Powerhouse generator rehabilitation. SFPUC staff said the generators are decades past life expectancy and delay would risk water delivery and about $24 million in lost annual power‑sales revenue.
Katie Miller, director of water capital programs at the San Francisco Public Utilities Commission, asked the committee to recommend approval of a resolution permitting SFPUC to include a comparative‑fault indemnity provision in a design‑build contract with GE Renewables US LLC for the Moccasin Powerhouse generator rehabilitation.
Miller said the Moccasin generators were installed about 60 years ago and are roughly 20 years beyond their life expectancy. "These generators were installed 60 years ago, are 20 years beyond their life expectancy, and require major repairs," Miller said, warning that failure of one unit would reduce hydroelectric production and that loss of both units could severely interrupt water delivery. SFPUC staff estimated lost power‑sales revenue of about $24,000,000 annually if the units failed.
Miller explained repeated competitive solicitations were stymied by industry objections to the city’s standard indemnity clause; staff engaged in negotiations and the city attorney negotiated a comparative‑fault indemnity that the risk manager recommended as the strongest available protection while allowing the work to proceed. The SFPUC Commission approved conditional award to GE on May 11, contingent on Board approval of the indemnity change. Committee members expressed support and the committee voted to forward the resolution to the Board with a positive recommendation (three ayes).
The action is framed as a choice between accepting negotiated indemnity language and moving forward with time‑sensitive repairs, or delaying the contract and risking a year‑long postponement tied to seasonal shutdown windows.
