Supervisors authorize PUC to sell combustion turbines, add cogeneration study

An ordinance authorizing the Public Utilities Commission to sell four combustion turbines (CTs) transferred to the city under the Williams settlement moved forward in committee on July 1 after supervisors added an amendment to allow concurrent evaluation of local cogeneration projects.

Supervisor Bevan Dufty proposed language requiring that, while the PUC prepares CTs for sale, the commission analyze feasibility and environmental benefits of local cogeneration projects and report to the mayor and Board if purchase of a CT would enable such projects. Dufty said the amendment ‘‘gives the PUC some options to make an analysis’’ while preserving the planned sale.

Zed Harrington, the PUC general manager, told the committee the amendment does not eliminate the sale and ‘‘retains the $10,000,000 that you were counting on for your budget.’’ He said the ordinance authorizes the sale but allows the PUC to return to the Board if a cogeneration opportunity that requires city purchase emerges. Harrington confirmed the priority remains a transmission‑only solution with California ISO and that the wording allows flexibility while proceeding with CT preparations.

Supervisors discussed whether to retain one or two CTs for leverage in discussions with the California Independent System Operator (Cal ISO) and whether an agreement with Cal ISO to close the Potrero Power Plant without CTs should trigger an automatic sale. Harrington said the ordinance authorizes sale of all four but requires the PUC to return to the mayor and Board before taking any action other than sale.

The committee accepted the amendment and moved the ordinance forward by unanimous consent.

Next steps: The PUC will continue CT preparations and the Board will receive any PUC reports recommending consideration of cogeneration purchases or other alternatives.