Transcripts For SFGTV Public Utilities Commission 11816 2016

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 pr