we are proposing that the cost limitation be limited -- excuse me, that the use of that risk management fund, that $4 million, be applied as it is today, but also be available to us to meet this rps requirement. it would be -- allow us to use those funds, modest amounts of those funds, minimizing the need to raise rates on -- to customers in future budget years. it's really a safety valve to make sure that our compliance doesn't push costs up unreasonably. president torres, you alluded to the timeline. let me put it up on the screen here so that you can see more specifically where we're at. >> right, that's good for the public to see that. >> yes. >> my other question is in terms of the rps eligible, the

renewables, what percentage are we looking at in terms of renewables? we have solar, wind -- >> right. so, now our resource mix is our biogas, our hydro and solar. >> okay. >> and because we have this separate section of the rps law, we don't have to procure beyond those resources except very infrequently. and we are proposing that that procurement be from renewable energy credits. >> so, the way they're titled would be appropriate? >> they would be. they would be qualified resources under state law. >> if we had -- >> if we had them, yes. >> and we have no geo thermal here? >> correct. we have purchased it in the part, but we do not have any in our portfolio today. >> where do we purchase it from? >> we purchase from the geo thermal system in guyser. >> in guyser ville? >> yes. >> are they acceptible our

hydro now? >> yes, commissioner, they are accepting our hydro. yeah, another hooray, that's three in one meeting. [laughter] >> we have -- we were able through the legislative process to explain that were we to have the same rules applied to us, we would just be selling our hydro and substituting in other renewable resources. the objective of the law is to in part to reduce the emissions from power plants. we don't have any power plants that emit. >> [inaudible]. >> yeah, i have a couple of questions. so, we can't bank the rps resources? >> we can. under the rules, we can -- if we have -- if we do that math equation and we have lots of extra rps compliant power, we can bank those renewable energy

credits. you earlier allowed us to register with us the western system that allows folks to have those credits certified in a way that's recognized by the marketplace. we are registering those credits, then, and we can use them ourselves in a subsequent compliance year. so, for example, in this year because last year was wet, 2011 was wet, we had some extra. this year we're going to need to purchase some, but we're also taking some of what we generated last year and applying it to this year. so, we're not having to purchase as much as we otherwise would have. >> and they don't expire? >> they do expire. under the regulations, they do expire. so, we would either use them or if we projected that we wouldn't need them, we would attempt to sell them before they expire. so, we extract the value one way or the other. >> that was my other question. and then i thought we budgeted in our budget for some additional renewable procurement. >> yes, we do have additional

renewable procurement in our budget. some of that capacity, if you will, that financial capacity is absorbed by the power purchase agreement we have with sunset, for the sunset soler output. but we also recognize that even in any year, what we may need may need we exceed forecast. we're looking at the risk management part of our line item to fund these unusual circumstances. >> and when was the last time that we weren't able to meet our needs? and i know that these rps standards are new, so, maybe we didn't have the same issues. >> we didn't have the same requirement. >> but have we been able to meet our needs with hetch hetchy with our parr? >> there have been times we had to meet short-term purchases in order to meet our needs. and maybe the best way to look at that is to again look at the

first background slide i put up where you can see there are some years where a lot of our generation is considerably lower. you could tell that our retail sales pretty much track a wet year. not exactly, but in recent years, sorry, they pretty much track a dry year. so, the dry year line you see on this slide here is about where our retail sales are or have been in the last 10 or so years. and, so, looking at these -- the tail end of this slide here, you can see although years we have plenty of power to cover our retail sales. >> so, one of the things this slide doesn't give you is sort of like that day to day sort of variation that happens. that's an annual sort of like slide. and when you look at it sort of by quarter or by month, great, you have lots of power in april, may, june, and you have very little in september, october, november. until the rain starts and the

snow starts again. so, if there is a cycle that kind of goes on and we do do short term purchases in what we call quarter 3 and quarter 4. just to cover, you know, our existing customers. >> and that's why we'd be procuring the recs this year, right? >> yes. this is a lower than normal water year and we've had some outages. >> right. >> thank you very much. >> anybody have any questions? yes, commissioner moran. >> on the -- on page 12 of the presentation where you talk about the cost limitation proposal. >> yes. >> and you have $100 per megawatt hour. >> yes. >> which is twice what the penalty level is that was set by the cpuc for pg&e. >> yes. >> what is the thinking as to why we doubled that? why do we choose to have a

twice what the cpucd? >> one is a penalty is one is a cost limitation. it could certainly be lower if you prefer a lower -- to cap the amount the puc will pay at a lower level, we could. it was really just -- we're just providing that as a benchmark for you to understand sort of some of the context in which we're proposing this number. >> and the market for renewables ranges from currently what to what? >> it's also about 30 to 50 megawatt premium on top of the brown power. brown power price. >> so, 30 do $50 per megawatt hour premium? >> yes. >> and this says that it would be market -- in case of an adverse market which is probably when we would most likely need to buy this stuff, it gives us some price flexibility there. >> right. to the extent that we are low on hydro -- california is low on hydro, and, so, market prices are going to be up

overall as a result. >> thank you. >> what is the impact of the deductions on solar utilization? have we measured that? tax deductions that are -- >> have we measured that? we certainly realize that it lowers the cost. >> right. >> and that's why we pursued a third-party for our development of the sunset solar project. >> okay. >> and didn't fund it ourselves. i can't recall off the top of my head, maybe you do, todd, what the -- mr. reedstrom, what the financial impact of that was for us. >> it was pretty significant. by way of comparison, the tax credit, tax credit financing that we successfully undertook for current sunset solar brought the average cost per kilowatt hour down to 23-1/2 cents. that compares to average costs of our hydro system. all the costs included of about 9 cents. so, without the tax credit

federal financing as well as the state programs, it would have been over 30 cents kilowatt hour. >> you need to take credit for that. >> we have a line item -- >> that's why i try to raise some of these issues because when you and the work that this agency has been doing, i am so proud of the fact that the cost saving that ultimately go to the rate payer, we need to talk about. if we're going to get your trumpet so you can blow your horn, we'll do that. you should be commended because you've been taking into account, you've been a steady steward of the process and look what it's producing for the rate payer here in san francisco. i'm sure most jurisdictions, knowing some of the mayors in those other jurisdictions, i don't think they've had as good a record as we've had here in san francisco. i want to say thank you. i think it's important to bring it out into the public view. >> thank you. it's definitely a team effort. a lot of detail. >> no question it's a team effort. my comments were directed to the team. any other comments? we don't need to accept

anything. [speaker not understood]. >> there's no action. >> right, no action necessary. i guess there is an action necessary to go into executive session, closed session. >> thank you. >> any public comments before we move into closed session? all right, we need a motion to assert the attorney/client privilege. >> move to assert the attorney/client privilege. >> second. all those in favor signify by saying aye. >> aye. >> all right. >> closed session items, item 17, existing litigation lennon versus city and county of san francisco. item 18, existing litigation cadmin versus city and county of san francisco. item 19, existing claim, chung versus city and county of san francisco. and item 20, existing litigation city and county of san francisco versus pacific run and gun club. >> let the record show that the

private session [inaudible]. >> i would like to make a motion not to disclose -- [inaudible]. >> [inaudible]. >> aye. >> [inaudible]. [adjourned]

[train whistle blowing] global warming. [whistle blows] some say irreversible consequences are 30 years away. 30 years?

that won't affect me. [brakes screech] man: 60-inch screen, high-definition. football season is coming up. you can watch it right here. what do you think? i'll take it. huh! huh! now, that's what i'm talking about. you're right. i don't need it.

educator. for 20 years i was executive directoroq for the chiensbo1x"÷ education committee where i helped renelster 100,000 immigrants to vote in san francisco. participate in our democracy. and i have been active for more participation in our elections. so please vote:d this election

cycle. i've also been a teacher of san franciscoy years. i've also owned a small business. my wife and i ownav business in the richmond district. i've neighborhood for many, manyrá years, most recently cochair of the richmond police community%$ advisory board regarding pedestrian safety, traffic, and keeping the richmond safes night. we are low on staff, at the()y richmond police5vsc

neighbors, to serve people who empty storefronts attract graffiti, it attracts

the things that i would do is bring a sporting good store into thn place in the neighborhoodj"îñwre people could buy a baseball or a shp &"p store into the richmond i1jú believe the richmond is a wonderful$;j place families. i care about our help and support our schools, and our school age]' in the district. we need more funding for our schools, we need to fight for that, and as a supervisor i will fight to make sure publicm education is well funded, and also that we have choices for families, education choices, schools or private schools in=gi the district to keep families in the richmond is a great place to live. my family lives there. i've lived there.

i graduated from walemberg high$ school. my brother lives in the district, the richmond is my home. i hopeee i will consider supporting me. vote for david lee. i will put the richmond is vitally important to me and my family to keep the richmond a great place to live. so vote for david thank ú >>xñ hi. i'm sherman desill have a, running for the board of district. i was born in the richmond in the richmond, and work as a store manager on geary

boulevard.fg i decided to run for the board of supervisors because i sawdca neighborhood resident hit by a car on gearyc crossing the?ñó.ç street. at an intersection that did not have a traffic0[ light, anintere had a traffic light over 20 years ago. i felt it was irrectit)p&f of oé to not take care of a safety issue like installind!wraffic as supervisor, i will make it my c @&c"p issues like this are the number one as supervisor, there's acicqsnç. first, as i mentioned earlier, geary boulevard from ocean beach to thel⌞bd geary tunnel. in addition to geary, i also want trafficuzpuç lights instan the major business corridors, ⌝i clement street, balboa, and california. now, for cleanliness inr7 neighborhoods, there's a couple

of things we need to do. first, i want to go backqn to str the neighborhood. we have tried street cleaning only once 4dlped the cleanliness of the it has consistently worse. going back to two times a week street cleaning will improve the situation. twice a week street cleaning i also want to have targeted like geary boulevard and the adn]+c corridors. items left out on the sidewalk. i want to makeñ$+ ñ/f sure thats the city's responsible to get items that have been left out on the sidewalk off the sidewalk within 24 in addition ¿ñ items left on the sidewalk, graffiti that appears on city property, i want this off city property within 24

hours so that it doesn't proliferate around the neighborhood. in addition to5.2 these two thi, have a plan in place in which we replace all of our roads and sidewalks every 10 years. the first job of government is t neighborhood is both safe and clean. these two priorities have not beenh4 met. as supervisor, i will make sure that we focus on. these are the priorities that are important. remember, if yourf house -- if don't redecorate. you fix the roof first. as supervisor, that's what i'm going to focus on, making sure > safe@ouc =' everyone. i'm eric mar and i represent district 1-rbgs the richmond on

san francisco's board of super i'm running for reelection endorsed by the san francisco democratic party and i response to continue representing you for the next in my first term i've worked restore theájá san francisco back on the right ei richmond more affordable for working families i help preserve policiesñ to prevent! families with children, transformed the core net theater for housingéwn

improve pedestrian safety on geary, masonic, fulton high traffic streets, to full vacant store&÷f"r-nç friends ony to lowerif hurdles for small business, and helped small emjq al exan dra theater to help them high tech businessesn'o% san francisco, to eliminate the payroll tax that penalizes job green jobs and other workforce training programs. to reduce travel time, traffic and pollution, i fought for,o new five fulton limited which will start next spring, and for the#z geary bus rapid transit. i helpe of the geary 38 limited andol÷ supported throughout the city especially

for safer biking for.v ÷: famil. tor"!ñ provideñtp&ity&nspñ opportunities for all of our children i fought:f5ñ÷(súñ to3h universal access/

hhbhzn otherufg÷w) democratic party but my colleagues on the board of supervisors and majority of myk÷ colleagues on the board of

including harvey milk democrati! club, wallenberg jewish, latino democraticó african-american democratic club and thekx chargest chinesey(úvzh newspaper 9 i am deeply honored to have such win reelection and continue working on behalf of san francisco's working families i need yourkn help. big landlords, real estate developers and downtown special interests are flooding the richió thousands of dollars in a campaign7wuz i real reason for opposing me because i stand up for you andf: neighborhoods' needs first. with your help we can set the vote and the votes of your family we can fight off the special interesta81a and4n continue the progress ovr the past four yef+yj richmond t san francisco back on the right track. thank you so much for your time andi