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PUC seeks extended delegated authority, raises power procurement caps to $300 million
Summary
The Budget & Finance Committee voted to forward to the full Board a proposed amendment to San Francisco Administrative Code section 21.43 extending the SFPUC general manager's delegated authority for energy procurements through June 30, 2030, and raising annual purchasing limits from $200 million to $300 million and the annual sales revenue limit (
The San Francisco Public Utilities Commission asked the Budget & Finance Committee on Feb. 12 to recommend an ordinance extending and expanding a delegated authority that allows the PUC’s power enterprise to buy and sell electricity and related products at commercial pace.
Julia Olguin, Director of Power Origination and Supply for the PUC, explained the amendment would extend Administrative Code section 21.43 through June 30, 2030, raise the annual purchase cap for contracts executed under the delegation from $200 million to $300 million, and increase the annual revenue cap for sales from $20 million to $300 million. The change would also broaden the ability to enter into contracts with binding arbitration clauses to include all counterparties, not only investor-owned utilities.
Why it matters: The PUC operates in fast-moving wholesale and retail energy markets and said the delegated authority is necessary to secure supply, meet state regulatory deadlines and preserve competitive rates for Hetch Hetchy Power and CleanPowerSF customers.
Details provided to committee Olguin told the committee the power enterprise needs flexibility to negotiate short-, medium- and long-term contracts simultaneously to meet renewable procurement, resource adequacy, and other state and CAISO-driven requirements. She said the PUC will continue to report quarterly to the commission and the Board of Supervisors on contracts executed under the delegated authority.
The Budget and Legislative Analyst (BLA) reviewed the proposal and found the PUC has used the delegation sparingly and for time-sensitive contracts that could not reasonably be processed through the full legislative cycle. The BLA noted the increase in the purchase cap reflects real procurement needs tied to higher market prices and regulatory obligations; by contrast it said the revenue limit increase was set to match the purchase cap for consistency rather than because the BLA expects $300 million in annual sales revenue.
Supervisor response and committee vote Committee Chair Connie Chan and Vice Chair Matt Dorsey expressed support for the change while noting the delegation removes authority from the Board of Supervisors. Chan and Dorsey said they expect the PUC to continue quarterly reporting and transparency on contract terms and costs. The committee voted to forward the ordinance to the full Board with a positive recommendation.
What to watch If approved by the full board, the PUC will be able to move more quickly in competitive energy markets and use binding arbitration more broadly; staff told the committee those powers will be used under the PUC's reporting and fiscal safeguards.
