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Budget committee backs SFPUC request to retroactively approve CAISO operating agreement amendment
Summary
The Budget & Finance Committee unanimously moved a resolution to the full Board approving a retroactive First Amendment to the city’s operating agreement with the California Independent System Operator. SFPUC said the amendment is largely procedural and estimated no city costs unless transition services are requested, capped at about $100,000 over 10 years.
The Budget and Finance Committee voted to forward to the full Board a resolution retroactively approving a First Amendment to the Second Amended and Restated Operating Agreement between the City and County of San Francisco and the California Independent System Operator (CAISO). Chair Sandra Lee Fewer moved the item, which passed unanimously.
Margaret Hannaford, division manager for Hetch Hetchy Water at the San Francisco Public Utilities Commission, told the committee the amendment formally extends the agreement and preserves the city’s ability to use CAISO services. Hannaford said the California Independent System Operator manages the state’s transmission grid under the authority of the Federal Energy Regulatory Commission and the amended agreement would only lead to costs if the city requested transition services. “The SFPUC estimates the cost of those transition services during a 10 year term will not exceed $100,000,” she said.
Hannaford said the agreement had been operating under CAISO approval since 2018 and that staff updated internal termination lists to ensure future action would not be missed. The Budget Legislative Analyst recommended approval after reviewing the file and related ordinance history. Committee members had no questions during the presentation and public comment period contained no callers for this item.
The committee accepted a clerical amendment and moved the measure to the full Board with a positive recommendation. The full Board will consider formal adoption and any final legislative language.
