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PUC seeks extended WAPA contract for Treasure Island power; committee continues item for revised cost figures
Summary
The SFPUC asked the Budget and Finance Committee to approve a second amendment extending a WAPA supplemental-power contract for Treasure Island through October 2020; the budget analyst flagged a substantial estimated cost increase and the committee continued the item so staff can return with an amended not-to-exceed amount.
The San Francisco Public Utilities Commission asked the Budget and Finance Committee to approve a second amendment to its full-load services contract with the Western Area Power Administration to provide supplemental power for Treasure Island and Yerba Buena Island through October 2020.
Sam Lorano, Power Enterprise staff, told the committee the amendment would cover projected supplemental energy needs tied to anticipated load growth on Treasure Island and described the method used to calculate projected supplemental needs. Lorano said the contract change was requested because projected demand in 2015 and after would exceed the base federal allocations the city receives under its existing WAPA arrangements.
The budget analyst recommended an ordinance amendment to reflect an updated “not-to-exceed” estimate, citing a significant increase in the projected cost of supplemental power. The analyst flagged that the total estimated cost under the extended agreement would be about $15,950,008.88 over the contract term and recommended amending the ordinance’s not-to-exceed figure accordingly.
Members asked operational and risk questions: Supervisor Kim noted litigation and financing uncertainties tied to the Treasure Island redevelopment and asked what would happen to the contract if development did not proceed as projected; SFPUC staff replied the contract is as‑needed with no minimum purchase requirement and that costs are recoverable from Treasure Island customers, reducing direct city exposure. Supervisor Mark Ramey raised the city’s municipal-public-power right of first refusal that takes effect after the WAPA agreement expires in 2015 and asked that feasibility work remain part of the consideration.
Given the difference between the ordinance’s current not-to-exceed amount and the budget-analyst estimate, the committee agreed to continue the item to its next Budget & Finance meeting so staff can return with an amended ordinance and updated financial figures.
