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Committee advances long-term WAPA power agreement for Treasure Island; PUC discusses alternatives and grid upgrades
Summary
The committee recommended a PUC amendment to extend and increase a Western Area Power Administration (WAPA) agreement to supply Treasure Island and Yerba Buena Island through 2054; PUC said WAPA power lets the city charge about 40% less than PG&E, and staff discussed possible transition to Hetch Hetchy supply and infrastructure upgrades.
The Budget & Finance Committee on May 5 forwarded to the full Board a PUC request to amend an energy purchase agreement with the Western Area Power Administration (WAPA) to supply Treasure Island and Yerba Buena Island through Jan. 1, 2025 (implementation) and a contract term extending through Dec. 31, 2054. Ramon Abweg, deputy assistant general manager for operations (Power Enterprise), described the transmission path for WAPA power and why PUC sought early approval: WAPA requested a commitment so it could reserve resources and schedule deliveries.
PUC staff said the WAPA arrangement allows the city to provide Treasure Island electricity at roughly 40% below comparable PG&E rates, but they also described contingencies and exit options: the PUC is evaluating whether Hetch Hetchy generation could supply the islands in the future, which would require transmission interconnection, delivery arrangements and assessment of available Hetch Hetchy generation. Abweg said the PUC could exit the WAPA contract by June 30, 2024 without penalty or with 90 days’ notice after implementation.
Supervisors asked about the low-cost nature of the WAPA power and reliability concerns on the island. Abweg said WAPA’s supply is hydroelectric, which provides a cost advantage, and described recent and planned distribution upgrades such as new switchgear and distribution lines intended to reduce outages. There was no public comment on the item. The committee recorded unanimous 'Aye' roll-call votes and moved the amendment to the full Board with a positive recommendation.
PUC staff noted they are also reviewing options to serve Treasure Island from municipal generation, and that any decision to exit WAPA would require assessment of generation availability, transmission access and avoiding additional transmission charges.
