Transcripts For SFGTV Public Utilities Commission 11816 20161116

Changes seeing none, can i have a motion. Ill move there is a motion that has been seconded any Public Comment . All in favor, say i. I. Opposed . The minutes are adopted. Next item. Is Public Comment this is a chance for any member of the public to comment to the commission under our jurisdiction that is not on the agenda foyer today any Public Comment . No okay seeing none, communications commissioners. Any comments or questions on the agenda any Public Comment on communication . Cool bosca im here to speak to item 5 e on our communication report at the request of your cac chair that is the first time for me to do that im here to calling your attention what is included a resolution passed its by the Advisory Committee on october 18th this year this was a resolution urging the puc for Environmental Review for a new Community Center in the Southeast Community in particular, the resolution has quite a few of the whereass hopeful a lot of communication at the cac but want to note the two roasted the Advisory Committee which was created to give voice to the community and the residents urges the sfpuc to initiative the Environmental Review. A Community Center that benefits the existing residents and have age intern Green House Program and be it therefore resolved the cac yourselves the legacy of the bayview Hunters Point in the Southeast Community facility her the litigation agreement is fulfilled and oversight for the community and support Community Center that provides workforce and Educational Opportunity for the residents of the southeast San Francisco so the cac was proud to act on that and wanted to make sure youre fully aware of if. Thank you very much. Any other Public Comment on communication items okay. Seeing none is there any other Commission Business . And theres none well move forward competing mr. Kelly the drought update. Can i have a slides please. Good afternoon, commissioners ellen deputy manager steve richie is a out of the office this week ill be giving you the water supply update with the reservoir storage at 77. 6 percent this time last year we were at 45 plus a significant increase in storage youll see why actually as we move through the presentation the other thing to note the water bank 82. 7 percent this year last year 32 percent is a significant improvement for us on our water system storming now looking at the other called reservoirs i will note that were seeing most of the reservoirs in the stat and the one hundred of the historical average for this time of year and very close to one hundred if theyre not there pedro is now shaft at 6 percent and seeing them added one and 5 percent of historical storage the state is looking up from last year heres or here your locating precipitation to hetch hetchy the red line solid line the water year 2017 as you can see that is tracking our wettest year 1983 for to get more precise the precipitation index for this week were at the 6. 8 inches for the year and october was credibly wet in the 95 years i have history this october was the seek highest 1983 the first highest with the precipitation and that has resulted in a significant amount of water available for San Francisco if you see only the next slide we have 79 acre feet that is available to San Francisco were well above for the entire year last year and that is shown on the purple line oh, im sorry, im sorry i meant 2015 last year was the green line weve not have available this time of year when what i added the amount needed for the storage on july 1st of this year three hundred and 73 like i said were 79 acre on the way there. On the bayview the significant perspiration october was a good month were at 4. 8 inches for the year and typically this time of year one inch and nature this is significant our local system is starting to get charged up as a result of the storms but the next storms we will see significant progress as far as loma on the delivery side our customers have been responding to the wet weather and we are at two weeks ago one and 73 for the last reporting week not shown on the slide one and 60 million gallons responding to the wet weather and thats all unless you have questions. Thank you commissioners, any questions. I have a question. Last year, we had el nino year that kind of shows no correlation between that and the perspiration here. Actually, we heard from the lifetime people saying were not showing an el nino i know there is talk in the press it is the feeling that is were not showing an indication either way hes actually started to warn that is like 1997 a big year for us we signed off at the same time. Thank you. Thank you any any Public Comment. I love the chart the 79 where we are and heading 73. Uhhuh. I mean that is does that mean little 79 will stay there weve had no rain until july. Yes. Yes. I understand. Yeah. Thank you okay. Thank you any Public Comment on the drought report mr. Kelly. The next item. Is the quarterly audit Performance Review nancy. Cynthia goldstein president and commissioner im nancy the director of internal controls that is for the audit for the fiscal year 2017 our recorded is the highlight for the puc for the external parties and summarizes the audit and the information to date 6 month calendar for all projects thank you. As highlighted in the executive summary 35 projects in stages of progress of total 5 were completed in one and each are in progress as we continue we have a number of projects definitely increased as more supplies audits are announced in the audit took place. So a typo the 5 audits were that of the management of the selfcertification for the north america Monitoring Program the second audit a series of audits by the Financial Services team for the fiscal year 20162017 for each of the watermelon and hetch hetchy enterprises the auditor completed the phase two of the Health Program pursue looking at to quarter one and two and beyond the following are anticipated franchisees for the Energy Center for the completion in quarter two with a internal audit and the performance audit for go Solar Program for rebate incentives and the audit in practices processing are the comprehensive Financial Report for 20162017 and the whole revenue requirements account for the prior fiscal year. As part of ongoing reporting of open year recommendations the port continued the prior recommendations is 87. 4 percent the enclose to continue to management to the open recommendation increase Response Time and enforcing the will accountability and trained within the management well continue to keep the commission on the audit plan and with that, this concluded any update. Commissioner any questions. Thank you for your work and at the risk of sounding like a broken record the Audit Program is first of all, second to none as far as i know in City Government anywhere and 72 hours one of the things we rely on a as a commission to make sure the details we canned get involved if are handled properly so it is very available what youre doing i appreciate 9 work and dont let our silence lead you astray on that. Thank you. Thank you. Okay mr. Kelly. So the next item. Is water Enterprise Capital improvement programs where we report dan. Good afternoon commissioner dan wade first start off with the Capital Improvement report some highlights in the cover letter ill not read but one thing since the last reporting quarter that was made to extend the daily water extend the project by 4 months a decision by the project team that had a new impact on the schedule and some of the local projects that are currently under evaluation and were anticipating rebaselineing of those projects i want to highlight that well be coming back to you early next year with revised schedules and the other thing i want to remind you the budgets are updated to encompass the cpi that was originally approved by the board of supervisors other than nothing has changed in the report and ill be happy to answer any questions you may have. On the wsip. Thank you, commissioners. Report to the baseline a baseline conversation. Looking forward to the baseline conversation. Yes. Regarding the schedul schedules. Now id like to turn to the Water System Improvement Program if i can have the slides please. So the overall status of the wsip excuse me. Is 93 Percent Complete as you can see the numbers of regional and the local numbers the local program essentially is complete all the projects in service we do have an Ongoing Service with the lake merced pump station with electrical issues well be coming back later in december to ask for an extension of that project to resolve the issue the proximately costs has not changed the Overall Program is on schedule and budget that is played baseline earlier this year. And just to highlight a few accomplishments we did complete the final construction on the Water Treatment plant had a claim from the contractor that was successfully r0e68d through mediation we have the construction contract we were able also to finish final projects on the bay tunnel and the pipeline schematic upgrade and the other highlights similar to the past received additional reward in the lobby of this building a display of the wsip awards more than 50 that is something we wanted to share with all the accomplishments of the project team. Moving on to the projects still in preconstruction there is really only one the castro project excited about the fact well publish the last ceqa document later this month on november 30th for the draft review and expect comments anticipated certification there that will go to the construction there pending the ceqa certifications and finishes about the same time as the replacement at the end of the program the other thing that is in preconstruction the new wsip projects weve approved earlier this year a corrections of items needed to meet the Service Goals promised under wsip so well initiated the designs and youll see those start to go to construction in the next year. For the Calaveras Dam replacement, of course, the last project or the largest projects in the program we continue to make progress this photo with the dam on the left that is the existing dam and the red line is the future crest of the new dam and what id like to point out we started the dam itself we started earlier actually, the beginning of october and placed the first list of clay in the foundation as you can see in the photo a couple of stock piles in the elevated one a great deal of that is a drainage material that placed adjacent to the ground material that the clay core of the dam id like to sodium in on that i want to highlight how tedious this work when you start putting in the clay core for the dam how clean is clean as you can see this the the stern at the walk with the dam standing to the side because everybody wants to be sure the foundation is clean to make a good bond between the clay and the foundation that is extremely critically portion of the project in terms of the dam safety now id like say that it is not going to be this tedious throughout the duration it will really when they first get started everybody is on the same page regarding how clean is clean before we move forward once everybody is on the same page that the pace starts to pickup, of course, a lot of handwork to make sure the clay is infected in the crevices and start using the equipment to bring this up as construction moves forward. That was actually, the first day with that photo right there weve recently completed the tower and as you can see the need to the original Spring Valley and the weather vein placed on top of the tower to be a portion of project that is capped off okay. So moving on to the alamany creek he wanted to show this picture from 1931 shortly after the construction when this was completed a dam that diverts water to the Calaveras Reservoir on the creek essentially expands the water shed to the reservoir and the tunneled that takes the water from the facility to calaveras is on the righthand side behind the concrete structure on the righthand side of the photo i want to show that photo youll go out there prior to construction it looks exactly the same since 1931 i in fact, i was out there it looks exactly that like that with water pouring over the top of the dam and the reservoir so this is is a recent photo of the dam there in the creek bed the water flows from the bottom left corner up to Alameda Creek and the tunnel to the abutment and sierra club what we are doing building a fish ladder around the right hand of that dam to include assess of the fuel head into the water shed this project is moving along and this is a photo of looking down stream of the construction area that the dam is there in the middle of the photo and upstream what i see the new conduits for the water that is innovation to be collected on the right side of creek through screens and conveyed to the tunnel the project is most often along this concrete court prior to the one shut down will continue to the end of the program and one of the water storage Recovery Project the 13 well sites there 9 first contract are essentially completed as we speak and kraeshthsdz looking for that next year there are issues to improve that due to regulations that so changes made we anticipate start up the locations next year the primary challenge on this project remains citing two sites if the san bruno as well as bosca it is really getting their Heads Together on this. And the last project i mentioned about the regional Habitat Restoration the last project is the nonnative vegetation remember weve made good process 24 hour and right now there are buttoning it up for the winter and that will continue through 20152016 as well ill be happy to answer any questions you may have. Thank you, thank you commissioners, any questions for this gentleman. Thank you. All right. Any Public Comment. Seeing none, mr. Kelly. And that concludes my report. All right. We will move on to the Consent Agenda mr. Secretary read the items. Item 8 the may be acted upon by a single roll call vote of the commission. There will be no separate discussion of these items unless a member of the commission, the public, or staff so requests in which event the matter shall be removed from the consent calendar and considered as a separate item at this or a future hearing. Item a approve for the agreement c s two arthurs and b accept the contract approval for the modification decreasing the contract with the time extension of 19 consecutive day item c is removed from the calendar and item d acknowledge that staff is in the design process for the Southeast Community facility on evans and the development of an does remember Green House Program. Commissioners any items youd like like pulled off consent calendar. Id like to move the consent calendar. Okay. Any request from the public to remove items can i have a motion . A second any comment all in favor, say i. I. Opposed . The consent calendar a b and d items are carried thank you. And item 9 approve for the specifications and award contract in the anonymous of 31 million plus to the lowest qualified responsive bird the construction company. Ms. Ho. Kathy ho for the infrastructure this project is to determine 0 existing facilities at the yard and to construct a new admin building and to have prefab buildings and 3 canopy structures 6 bids all over the engineers estimate and and consulted with public works their noticing the issues with theyre building projects theyre coming in over engineers estimates the funding from for this Additional Base bid will be coming from the water shed center for the time being and the water shed center the payment is looking at at the engineering to trim costs on the water shed center. Okay. Any particular cause for the increase. I think there is so a lot of Building Construction throughout the city so public works theyre saying the bids are over because of the construction that is going on throughout the city. Okay. Thank you. Commissioners. Yeah. I dont understand so the water shed the Education Center whats it called. The water shed center. So the money thats where the money is going to come from. The additional 5 to 6 millions. Is that going to jeopardizes this project. Well wont have a water shed center but value the engineering and come up with a more efficient way of building or constricting constricting that. I think also there are other projects that may come in and have contingency or because that is a later. 09 projects so the a gm is looking at theyre ten year capital to juggle to try to accommodate this construction as well as the water shed work. Id like to at some point id like to get an understanding the where the contingency money and the prelims for the water shed that a great project ill hate to see it compromised. Well come back with the water shed center and have the monies how how it is looking like. Thank you. Id like to point out that this is a trend that were seeing given the number of cranes and how much work is out there a lot of projects within the city not only San Francisco public works but also the port mta, bids over the engineering estimate and also were seeing fewer bidders theyre to busy dont want to bid we were working on trying to resolve a settlement and you know negotiations not with the city but a private person to do work he was trying to get bidders and one didnt want to bid so this is really challenging and you know it is for me being with the city for 3 two years ive seen this cycle we need to try to figure out how we can you know position ourselves to at least be in a position you know where people will like to bid with us but the fact people are very, very busy we need to try to figure out you know we can maybe relook at our estimates to take into consideration. Well, one thing there is not a lot of bidders so this is ill expect if things are that tight you might have 56 bidders but there were not a few so keep an eye on i know at other times because of steel projects went up it is pretty clear reason why so ill just you know we need to revisit the center but keep an eye on the trends to learn from that. Through the chair can you look at that. Great. Thank you. Can i have a motion . So moved. There is a motion that has been seconded any any Public Comment. All in favor, say i. I. Opposed . Item 9 carries. Item 10 please. Item 10 approve the specifications in the work contract in view of them of 29 million accomplice to the lottery quality and responsive bidder j m b construction. This item actually came in within the engineers estimate with the pipeline project part of the original wsip water supply projects that and this project will supply to m g d water when the project is completed we are putting out the we are getting it done through the 3 construction cracks that is the third to do the pipeline work that connects the recycled water plant to Little Reservoir and pump station in Golden Gate Bridge so the second contract that will be coming out for the Treatment Plant itself at oceanside facility and the third piece will be the pillage station reservoir in Golden Gate Park we had to startle the contracts theyll all finish so we can get this done for the whole facility. Is there any uncertainty about reservoir and pump station locations. No, because i think their modifying what is in Golden Gate Park theyve put in a reservoir their not fully utilizing i think most of agreement are being worked out and you may have approved them earlier. Okay theres been some shifting of position within rec and park were at the place to spend serious money. Steve richie has met with them and this has not been brought up as an issue. Commissioners. Like to move the item. Been seconded comment . All in favor, say i. I. Opposed . That motion carries. Item 11 item 11 a working group on the cleanpowersf plant. Ms. Hale. Good afternoon barbara hale assistant general manager for power first, i want to give a short update on cleanpowersf efforts before we go into the details of the workshop and talk about enrollment and activities on the enrollment we continue to successfully serve our customers our may enrollment i have no changes since the last meeting were serving over 74 active locations and the opt out is 2 percent so weve opposing to stay there on november one we began serving additional customers in districts 5 and 8 Customer Accounts shifted to cleanpowersf with the november meter reads so by the end of november well be able to report what our Customer Base we expect is that 3 thousand we are currently experiencing on opt out percentage of one. 5 percent for the Fall Enrollment group we received im happy to report nine hundred and 27 up grades so weve reached the milestone supergreen is more than one thousand accounts thank you san franciscans customers sign up our the future exploratoriums were the fact of the matter go 74 percent are supergreen so that enthusiasm looks like that will continue which is great on the rates the California Public Utilities Commission will be issuing a decision on pending pg e rate requests and transition rates we know will change the enacts to the hetch hetchy customers will be small and the revenue will be neutral with respect to cleanpowersf we are expecting the cleanpowersf customers to experience a small bill increase relative to pg e bundled service and newly until the next pg e rate we expect to be an increase in the spring or summer so there will be a period of time where we expect our raised for cleanpowersf to be lower but the overall built enacts because of the tci a that pg e charges our customers will be a small increase the proposed decision from the California Public Utilities Commission is expected later this month on the issue well have an opportunity to comment on that and definitely take that the subject property and the puc will issue their decision rates will be on january one ill be happy to answer any questions you may have. On those topics. I have a question sorry. Uhhuh. Will the pc i a question be revisit for the rates or. The pcia is a piece of California Public Utilities Commission december decision yes and we are on the cpuc front and on the sort of cost nonbypassable charges were active in a working group that the California Public Utilities Commission established on the formal the pcia calculation and together with the other Community Choice agree grandfathe grandfathers the methodologies will which was and next for the legislation season collaborating on what sort of changes to look for legislatively to address various cac and investor utility issues including the sharing of investor utility costs with pcia customers so the plaintiff cia methodologies probably will not be finished or revised before the meeting on the rates; right . Thats correct. Yes. Okay. Im sorry one more question that 70 plus if so how does that complete with cac. Thats one of the tops will be addressed if you indulge me the presentation were switching into is really to see you know the effort is all about seeing how to accelerate the Program Enrollment throughout San Francisco you know back in december of 2017 we presented you with a Business Plan that Business Plan had some projections and now looking at how to accelerate these revised you well come back in the spring with that plan commissioner vietor you asked more information during the development of the plan and not land the plan on you in the spring this workshop will be responsive to that request with that introduction im going to turn it over to responsibility over to mike our cleanpowersf director. Thank you. Good afternoon, commissioners. Good afternoon. I might not be wearing a chicago cubs tie laughter before i start, i felt like ill be remiss not to congratulate you in the world series the giants fans acknowledge that but i was roll call our work basically a year ago and you announced at one point weigh launch the program and the cubs will win the world series they happened in the same year anyway congratulations offering great the presentation is focused on reviewing the work underway on the plan. Im going to start with the implementation approach and a consultant of the plan and finally ill share some of the research weve been doing with the cac programs some initial Lessons Learned and the next step in the process. So this should be a familiar slide from the Business Plan activities and updates over the course of the past year the goals the Commission Adopted for cleanpowersf and we endeavored to consensus with the balance to those goals for affordable and Reliable Services for the portfolio with the lower Green House Gas emissions and invest our revenues in Renewable Services and jobs, all while providing for long term rates and financial stability. And what have we done towards chief of police the goals first, the launch of the program with rates a quarter of a percentage after accounting for the fees that pg e charges the customers second you adopted Energy Portfolio for the green product of 39 percent audible renewable with lower Green House Gas emissions overall and third you adapted a tariff an electrical vehicle rates and recently approved the steps for the cleanpowersf programs and well feet we are staff our staff works on the tariff to be made available next year. As you may know cleanpowersf launched in may 2016 it became the second Enterprise Program of a single or county and lancaster is the on that formed in Southern California all other cacs are Transbay Joint Powers Authority and the startup for an 8 million loan for working capital and also 17 line of credit to secure the transactions and we established cleanpowersf as a financially straight exit to provide the transparent to limit the financial risk on the power and launched that has a 50 megawatt opt out raised were projecting the program will be serving 50 megawatts within a year looking like we may go 20 percent. Lets see my colors get messed up but to help to guide staff in implementing cleanpowersf the Commission Adopted 5 best practices that cover the product content and the rate setting and phasing and the supply mettle and the reserve all the policies are summarized but the narratives are included in the december 8, 2015 packet the rates have to compete or beat pg e and established rates are sufficient to recover the program costs, power supply sources are sufficient for the demand that the program has sufficient Financial Resources to meet the financial obligations, and that the program has necessary staffing and support systems in place this is another slide weve cycled from previous presentations this is the note that cleanpowersf is the Major Initiative Offering Service citywide is an 8 fold increase putting it on power with the revenue perspective twice the size of water enterprise from a Customer Account perspective the statistics are in the bottom of the slide the account issue is a function of more multi family dwelling meters for electricity. The goal the growth plan is to accelerate the pace of growth in a financially responsible manner that is the goal that established ourselves this effort to do so the growth plan must answer fundamental questions resolve restrident their suhr the program has the in the Financial Resources to increase its power purchasing activities and organization alley handing growth and the metabolics to know when to hit the gas in terms of growth and hit the breaks for example the rate issues we were talking about before. Will have holistic recommends well present to you this is a road map for Program Growth that identifies the environmental and economic benefits of growth and the additional Power Supplies to meet the citys goals a proposed schedule and approach to financing the additional Power Supplies and establishing the enrollment plan. And these boxes identifying the components the the subject property area of the components were working on. Before you go on. Yeah. I have a couple of questions about you going on one the 17 credit when does that get paid back. The letter of credit is sort of the backstop it is available the way it was set up it will only be used in the case of a termination when a default the city and cleanpowersf is in default. Weve not entered into a credit arrangement. The letter of credit is j. P. Morgan that instrument is available to the supplier in that instance. Were not going there. Not at that point. The other piece as part of growth plan i want to flag it it came up before the actual product and increasing the greenness of that product question about natural gas and projections as the market continues to shift in renewables are more available and cheaper what that transition might look like. Your anticipating a few slides from the slides dont address our questions ethic to claesht but as any questions for accelerating the pace i want that to be a component to alert accelerate the pace of the product while maintaining the Product Liability as well. I think that once we go through the rest of the other programs weighing well see theyre able to accelerate. Oh, okay. At the did it for a cost or rational for a reason. Yeah. This is paramount to the growth plan we identified the goal as established itself as a vehicle for chief Financial Officer an environmental goals among others and the city has articulated a goal to contribution the Electrical Supply to one hundred Green House Gas emissions by 2030 and cleanpowersf is the means by which the city can really take action on that goal. More drarlg so thats going to be central to the growth plan and the gather source plan we do this year and every year Going Forward as Market Conditions change and the demand changes as well. Okay. Great. Okay. So the Development Experience of other cpas a number of slides summarizing the information on other counties have approached this the rates for the default electricity and the content of the portfolios the build out and compliery building and the approach to securing the financial supplies first how have the operating cacs been to Program Growth is this bicycle chart ill walk you through how to read this chart fairly data rich this bubble chart is the growth and relative in megawatts the cac program is identified on the list and the year on the y axis they represent a phase of the program with the first bubble with Program Launch and the last added fullscale the size of bubble is the size of the program in megawatts and if it is a solid line around the bubble the phase is completed and a doted line indicates the plan or provacative it is difficult to see the doted lines are difficult and the megawatt values are identified in each of bubble sanborn map is the first Program Identified on the chart it indicates that the Program Launched in 2016 and we will expect to serve 43 afternoon megawatts that calendar year the phase one will be complete by the end of 2016 thats why you see the size growing to 63 megawatts in 2017 that is the first full year of energy on the phase one the remaining 3 bubbles in the green cleanpowersf sector which are for 2019, 2020 and 2021 show the additional phases projected in the december 2015 Business Plan to get to the citywide serve and youll see two, that they are projected to be 13 megawatts at that time moving to the axis to the right the relative size of the cac programs and the first one is the lancaster that reaches maturity already and soma and mcare in the process of addressing community with the next year. Right in the middle of the project is clean energy that launched in october of this year and peninsula what youll see peninsula is planning a rapid planning growth in the process of carrying the resources to meet the projected demand of the additional phases as of this date peninsula planning on Offering Services to all customers in the Service Areas in 2017. A few additional observations once the fall enforcement cleanpowersf will an as large as lancaster and on with soma around the same time in their project development it will be the largest cac given Current Conditions when fullscale and the chart also shows how fast the peninsula relatively to the cleanpowersf business schedule and accelerating that pays by 3 years i want to emphasize our growth plan work is examining how we can expedite future phases of enrollment so we can bring the benefits of clear energy to san franciscans a faster timeline and in a financially responsible manner. Moving on to rates actually any questions on the last slide no. I have one at build out youre looking at a fair amount of energy being served by the cac program how does that relate to the size of pg es service area. That wont effect pg es service area the cac programs wont principally because that service area is defined from the Vantage Point from an Energy Perspective pg e has published the projections they see 40 percent of their generation supply service migrating i believe by 2025 a 40. 40. How does that play into the pca. An important part because the issue at hand is that pg e has made commitments on behalf of all the customers in the concept behind it is that the remaining customers are indifferent to customers departing for another service so it is important that pg e is making the projections theyll saying they should be pulling back from making for commitments especially long term commitments to serve the customers that factors into the longevity of the cac over time to give cleanpowersf for example, we had customers depart pg e shouldnt be ready to serve those customers and assessing the values take a snapshot want commitments of low migration for the customers departure and if it defines the cost ongoing obligations so again, it is important and it didnt necessarily effect the amount of pcia the amount is relate to the cost of resources that are in pg e portfolio against the estimated value so what pg e can get from the market in it sells those resources. Are some of the Resources Available to us to acquire from pg e or to obtain energy from them. Pg e has made the Resources Available for sale and issue offers and request bids Pacific Heights i periodically up for discussion when it comes to how to manage the what we call the remaining customers indifference and fairness to cac customers and make sense for cpas to buy the resources from pg e. If they fit with our profile for energy we want in terms of the you know it is Green House Gas it seems to be a way of reducing their argument we can unburdensome of these. Sure a strong argument for cac taking the contract costs there should be no cac costs. Well urban design greener so some of those probably wont yes. Thats true the type of resources can be at issue. Didnt you say the pcia wouldnt be affected and still be the same amount even if the customers migrated. The migration of customers didnt effect the sail of the pcia thats true i was trying to say if p cia started buying from pg e their portion of the contracts that pg e has secured on behalf of the cac customers and they were paying the Contract Price that pg e is responsible for there would be no need for pcia. Right. Now the reason the pcia exists pg e prices are expensive that brings the plaintiff cias prices up closure to where pg e is. If theyre losing 40 percent of their customers they should be pretty much less so the by cia should be going on dune over time what is included are long Term Contracts and much of that is Renewable Energy. Theyre still entering into but entering at a reduced rate right now because of the migration. Thats right. Well, because of market one clarification there the market for renewables has improved draeveng since pg e has procured under the portfolios contract. But if pg e didnt have demand bus customers are switching to cac theyre not actually in the market at these prices. My first reaction when i saw the chart there was a lot of cacs radio auto out you expect there be be a congestion in the market that prices may go up bus of not only our prices but others. Were aware of and considering and alcohol monitor it is hard to anticipate now without having done solicitation refresher not seen the trend part of it, it is the state and the cacs are trying to build in any capacity on the margin our new projects and new projects are competing against one another to get those but there could be a pace issue where cac has won a certain amount of the Renewable Energy if their portfolios and others cant keep up thats one possibility and no anecdotal or no evidence at this time this is happening now. If i recall some discussion about trying to have the various cacs coordinate if purchasing the electives. So well have informal conversation how to coordinate and pool our buying power 80 together i think youre aware the cac has formed an association recently cal cac those radio did types of topics that come up with discussing the policy and regulatory policies that cac is assessing and coordinating i think there is a a real opportunity for cacs to look at how they might collaborative through the establishment of the sort of Service Oriented gp n to have greater quantities to drive down prices and offer Certain Services potentially call Service Services for example. Thank you any other questions on this slide. Okay. Thank you. Precede. Thanks. Monkey off my back to rates so the affordability has on a hallmark of each cacs product at the time of launch each cac has offered lower rates at the time of launch, however, most cacs recognition theyre not in control of the rates making the representation theyll meet pg e for example, times running the rates i should be clear that the cost to mccustomers have exceeded pg e when finding for the pg a not operating cacs tend to have competitiveness rather than beating pg e with theyre marketing materials. This slide compares the operating cac default with the snapshot of the rate difference for the e1 the standard Residential Rate schedule for the investor and utilities for the default products that is cleanpowersf screen products the out liar is lancaster as i want to point out this lancaster is in pg e territory they compete with a different illustrate and a lower generation rate and as a result their pcia rate is lower that explains the big difference in relative costs the chart indicates that while s c e is 5 percent of their total generation rate pg e pcia is 25 percent of the generation rate pursue the operating p cac are offering rates that are all about 5 percent of one another one 5 percent of one another i want to point out that part of what were doing with the platoon a studying the costs of our fellow xeefrts and to better understand the expansions to help to spread the costs that is something well do with the performa analysis and i will point out that our initial finds with that scaling helps significantly in recovering the costs. Okay. So this shied is not showing up well, i apologize for that but this is a slide that compares operating cacs electricity portfolio with pg es and starting from the left hand it shows pg es renewable content with a y to 100 percent and pg es is thirty percent renewable and 59 Green House Gas emissions free with 23 percent of that source from uniqueer and hydro if you move right to the right of chart youll see the operating cost the first one is cleanpowersf and those figures represent the best current estimate given the supply and demand to state of what our content for the green default product will look like and youll see were currently project by project our products to include 40 percent bundled bucket one Renewable Energy generated from california 36 percent green house hydro electrical sources that includes 15 percent aroused from hetch hetchy this year. And then 21 percent from other hydro traffic light supplies provided by the suppliers for for a total of 76 percent g h a content that 17 percent red there between and the other 24 percent if cal pine generating united this supply actually provides Green House Gas emissions savings when compared to purchases from california i s l and that is 10 percent savings. How long is that california contract for. 3 years. So the takehome message is that cleanpowersf is performing well as far when meeting the goals to delivering more clean energy to our customers. Again apologizes for the light coloring but this is a forwardlooking slide and i mentioned before the major part of growth plan will be identifying the rate and quantity in which we need to increase our content that goal one goal to chief a g h g free this is the pg e projection of the green house within now and 2030 difficult on the overhead i apologize the y is the portfolio coming from Different Energy types of and pg e is project by project that will increase from thirty percent today to 53 percent in 2030. And its g h g 50 to 73 in 2030. In contrast the doted line shows cleanpowersf renewable default product if it were to maintain the 10 percent margin over pg e thats essentially where we are we projected out to show where we are at which is 63 percent renewable and then the top line the green house commended it shows the Green House Gas emissions squeezed out the cleanpowersf portfolio over that timeframe. The growth plan is going to start to lay out the options for meeting this demand but i want to point out were conduct a plan that provides for specifics to look at the optimal mix of the resources is and thats will be over a long term a 20year and well be updating that plan on an annual basis. Can i before we leave ill be interested i mean, i said subtly in understanding maintaining affordable how quickly we can move forward and meet that 2030 goal going g h g free and moving go forward with renewable especially with the success of the program that that looks like because the climate is changing fast and it is incumbent to make sure we get to the other side of the bridge maybe go back and put that in that would be great. Okay. Just a few more slides that is the comparison the build out and the complimentary programs that are offered or to be clear this slide shows the gaps we are Telegraph Hill trying to fill the cac is not Telegraph Hill developing a program to the best of our knowledge and that cleanpowersf doesnt intend to offer the program i want to point out about Energy Efficiency the customers have access to city administrative code and program for the programs and were planning to make sure that the customers are aware the programs to assess being a cleanpowersf customer didnt effect their goiblthd we contribute to the funds of the programs improving offerings to specific to customer needs is a part of cleanpowersf programs future and again what this shows is areas were Telegraph Hill staffing today the takeaway the largest cac program is the locate offerings here and cleanpowersf is implemented two, that meter energy and metering were in the process of developing one the terrace a balanced payment plan and ongoing payment the staff is Telegraph Hill working on those today and we have to make the programs available next year. Can i ask a question about the electrical vehicle rate how do you see that structured is it too early. What weve done as far the electrical Vehicle Market is a developing market what weve done is adopted the rates that pg e is offering we have a complimentary vehicle rate that pg e is doing and theyre two options and those options are intended to support different aspects of the market both but with the goal of charging at appropriate times we have you 36 tend to have a different profile they discourage on usage an area that will be cleanpowersf will be good grounds for policy making in the sensed as we better understand the electrical Vehicle Market and the customers needs cleanpowersf is tailor their rates for the time of use they con assume electrical vehicles are a sector of the market for demand response and it is something we can fill the box on the electrical vehicle side. So pg e lowers your rates if you charge between 11 00 p. M. I think 5 00 a. M. But your rate overall is we have electrical electricity lower in that sense so im curious to see what that looks like down the line and car sharing hoping that electrical cars will be shared this is the best city in the world to have electrical cars and a later discussion other plans for charging for people this is the structure and demands but love to see that someday if so it practical. An area were in active discussions not only for cleanpowersf but for hvlt Public Utility Services we have electrical charging stations and are working across the city to look at the best practices for extending the infrastructure and bringing our green house hetch hetchy power supply to that market so i think definitely intend to be more information on that. Thank you. I was surprised out how the electrical vehicle rate if you get the preferable rate mooifrns are required were at home during the day and actually cheaper to keep it under the old plan i charge my car at night so for anyone that is similarly situations as us to the Early Morning hours and not compare during the peak it takes a different kind of structure. Yeah. I think that you know it does speak to the evolving market a lot of research how customers use the electrical vehicles when they charge what theyre driving patterns are, and you know, i think this is an exciting area for us for cleanpowersf to really actually move the green house needle further by not just addressing the Electrical Supply but also to address the transportation sector but i think another layer there will be looking at the cleanpowersf demand characteristics and aggregate and trying to direct consumers to the times that benefit cleanpowersf overal program from a financial perspective. Okay last but not least we are looking closely at the credit requirements be associated with the growth all cacs have some form of Financial Support from the local city and county member agencies with the Transportation Authority or private lender had distinguishes out the usage of a lockbox of escrow account every other cac launched to date has utilized the lockbox to have the startup supplies cleanpowersf uses the letter of credit we discussed before and twerpt launching the cleanpowersf a year ago only a couple of suppliers with the box and the city of lancaster established the first multi party lockbox at the valet the peninsula adopted the multi party lockbox for example, and cleanpowersf opted out to use a line of credit to launch the program quickly and to be the best competitive we only have a couple of supplies and wanted to reach as many supervisors to get a competitive offer for the supply costs the lockbox has been critical to help to chief and plan by paid programs as a result the evaluation of the lockbox option will be a key program to our work Going Forward hello. Okay. So what are how findings and next steps were very much in the startup mode we can claim that the program has been a success thus far weve launched the competitive rates and fewer Green House Gas, however, well be bringing more information on the performance of the program over several months as the year concluded and other cpas use lockboxes to secure payment to suppliers without injuring the cost to the supplies that is representative in the comparative chart with the extensively priced lockbox are a key ingredient for more radical scaling than cleanpowersf projected in the Business Plan which was really an organic growth using the Program Revenues and additional collateral through a letter of credit in addition to your consideration of lockbox arrangement re developed the recommendations and conduct further analysis to understand what the Program Financial reserve should be and adjust the program and reserve policies to get give the program more time to meet them for example, and other Renewable Energy like category 2 renewables how much do we expect those to meet the growth rate a communication outreach perspective and power purposing and financial purchasing perspective and critically what is the staffing report to insure that we make no compromises in Customer Services and capability as we expand and with that, dont forget to join cleanpowersf. Thank you. I noticed one of the bus stops in any neighborhood has a very nice large poster that advertises definitely it is very good. We initiated an campaign that includes the posters theyre very nice. Thank you, commissioner any questions. I have one comment. First of all, thank you so much for your hard work i know that commissioner vietor was a strong advocate and but you guys played pokeer and had to show your hand against an occupant that didnt have to this is very, very masterful i think that i wish chicago could have Something Like that this program the way you guys were aggressor aggressive and thank you for the advocates this is a great year thank you very much for your work. Thank you. Thank you. Public comment. Mr. Brooks. Good afternoon, commissioners eric brooks sf green party our city sf clean energy advocates. And Grassroots Organization of our city a lot of hats as commissioner knows i did a deeper dive into the baseball met for i spent a lot of time growing in chicago i am from california i used to be skeptical i believe in incarceration ive been waiting one and 8 years not only in my lifetime for the cubs to win the world series the met for is great what weve achieved with cleanpowersf and the cubs winning the world series that is fortuitous but the world series is taking building renewable efficiency and the focus it Program Needs to have going from this point forward we need to win our up and down the is not pg e but the climatic change that will destroy that pg e is a good picture for the bad guys but the bad guy is the climatic change like the Baseball Team to win the world series against the climatic crisis cleveland is apologizes to cleveland you have to have an entire team of 9 positions to win the game you cant just say all right ill try putting out a pinch and try a shortstop and make them a catcher and maybe well add some outside fielders and base men later in the game if you do that youll lose the game and again, the game is Building Renewables not just we need to build local and other renewables so standards touch on the edges we really need to do focusing on getting all the players gathered and working together we have efficiency renewable and solar and wind and regional wind and demand response all those things being planned as a team effort in a network of resources all put together that all go out as a planned thing where a coach plans a game so were getting the best economies and the berries integrations of the resources together and putting the whole team on the field is our fight again, the climatic change and beat the other team thats it cubs win. Thank you mr. Brooks. See ive always known hes a great guy. Jason fried, executive officer. A whole heck of a lot it cover in 3 minutes ill do my best first of all, some of the things commissioner vietor i agree we need to go as green as possible one our program has a restriction how we get our electricity are all the restrictions needed theyre keeping us in the way of having a more money important build out and more money for efficiency and as well as more money to go out address find on the resources of Renewable Energy that work perfectly fine climatic change is an International Thing didnt matters where the Green House Gas we need to have a contribution into our grid but taking a serious look are we regulating too much where the electricity comes from that hampers our ability to get more electricity within the last week i got an email about a program theyre getting rebates for people and helping to pay for the installation of charging station within our property we should be looking at ways to do that not only are we encouraging people to use greener trouble to our ability to get people to electrical vehicles helps to grow our energy needs but cleaner electricity and getting them off of dirty fossil fuel ill encourage us to look at theres a Pilot Program but want to take into account that as well getting into some of the discussions we are going on around the long Term Contracts from the p cia i know your monitoring that one thing the deblow plant closure that can be impacted and one thing to keep in mind you dont need to go out and get contracts but the old contracts that ill defend pg e for a quick second it is rare they were great and needed at the time but theyre much more expensive and figure out how we balance that load for them without having them increase and keep the costs fair to the cac customers at the same time then the final one thank you to the staff their trier of fact to work hard but need to look at how were getting money from the charge i can guarantee you the department can do programs better but right now pg e gets to take the credit for the department of the environment but great if we got did money instead so i encourage to look at that if we can get that money and not through pg e continuation a better Marketing Program for us. I see some needing heads well be taking comments for next year for the world series and the of digesters completed. Can i make a comment. So i appreciated the Public Comments and just wanted to first emphasis in the grow plan a couple of pieces will be great to include we want to keep an eye on the local build question having when some flight assessments might happen thats in the mix angles ago to talk about what might be the low hanging fruit with the local build out and to build resiliency we have a Power Generation and from a job perspective there is a lot of opportunity ill thinking in the grow plan that would be great im hoping when we talk about accelerating the market mix as soon as possible for 100 percent renewable g h g freeze the question of restrictions ill imagine will be addressed as part of that because they were reasons to put the restrictions on and some might be valid but when we talk about acceleration whether that is regulatory or otherwise to leave it i want to point out we talk about affordability with pcia and other pcias are doing rec they have rates that are cheaper and at the same time, we wanted to do local build that are more expensive so were still with that you know juggling act were trying to do it responsibly and we look at the lockbox we can move towards but i think we agree that maybe very should look at some of the restrictions we have and the other thing you you know it maybe challenging to put the current contract and decrease the costs we may not be below pg e. Right. So, i mean we have to revisit all of this im saying were cautiously moving forward thats why i dont want to Start Building stuff and be more expensive than pg e. Yeah. Thats why im saying you know we look at everything. I think this is some a shifting collapse the i cant do what we purpose pg e assets as we grow our program it is interesting piece of mix and just in the growth or Business Plan understanding it can change to factor all the things it i dynamic. Any other questions from the commissioners general Public Comment thank you all no action required on that item staff will be back early next year for followup. Hi emilio nice shirt laughter okay. Were about to go into closed session. Madam secretary call the items for closed session. Item 14 unmitigated claim jason and selena and item 15 the existing claims along the martel and pro 21 will not be heard today. Thank you any Public Comment on items to be heard in closed session . Seeing none, can i have a motion . To assert the Attorney Client privilege. To assert. Move to all in favor, say i. I. Opposed . And that motion carries and well now go into closed session. Mr. President , a quick moment for the crews to come join harlan and i thank you for honoring the World Series Champions they have invite commissioner caen. Can i vote. Yes. Please. laughter . Did you emilio . Since you dont have a hat to were ar. laughter . With my were back in open session. During closed session approved settlement on items 14 and 15 can i have a motion . Whether to disclose during closed session. Move not to disclose second and. All in favor, say i. I. Opposed . That that motion carries and is there any other new