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Committee forwards retroactive Clean Power SF purchase agreement with PG&E to meet state resource adequacy rules
Summary
The committee recommended approval of a retroactive three-year resource‑adequacy purchase from PG&E (roughly $11.1 million over three years) to meet California PUC requirements; SFPUC staff warned of significant fines if the city lacked contracted capacity and described ongoing longer-term procurement and a central‑buyer proposal to the CPUC.
The Budget and Finance Committee voted to forward to the full Board with a positive recommendation a retroactive contract between Clean Power SF and PG&E for resource adequacy capacity intended to meet state requirements.
An SFPUC representative explained that Clean Power SF serves about 380,000 customers and offers two default product tiers; under recent CPUC changes load‑serving entities must procure resource adequacy products three years in advance and from specified regions. The PUC representative said the city had solicited and contracted other suppliers since April but still faced a shortfall for the 2020–22 compliance period and therefore participated in PG&E’s multi‑year solicitation.
The presenter said the general manager signed the agreement in advance of committee approval because of time sensitivity; without the contracted capacity Clean Power SF could face substantial fines and charges. “We estimate upwards of $30,000,000,” the SFPUC representative said when describing potential fines and regulatory exposure.
Supervisors asked for details about the CPUC rationale for three‑year procurement windows and whether alternative suppliers exist; SFPUC staff said longer‑term commitments signal need to the market and that competition has been limited, prompting participation in PG&E’s solicitation to close the gap before an Oct. 31 reporting deadline. The Budget Analyst reported the contract value as $11,100,000 over three years, said the cost was built into the rate model and would not require a rate increase for Clean Power SF customers, and recommended approval.
The committee accepted amendments and moved the item to the full Board with a positive recommendation as amended.
