policy on renewable development and it does not modify existing renewable programs as determined by the commission. this chart helps identify that. the procurement planning processes pacific to the obligations under the new regals -- renewables law. policies will function as they do right now. but to be consistent with in the act, the act establishes an enforcement program process at a planning process. that is what we are setting up. this enforcement program applies specifically to the sfpuc's operations as a publicly owned utility. it does not apply to the cca program, clean power sf. the renewable obligations are

governed by the enforcement process. so, to get tho the meat of it, the actual elements of what it will do to establish what we put into our procurement plan is where the commission, you are basically providing guidance with what you want to see in these retirement plans when we come to you regularly with how we plan to meet our obligations. what the enforcement program has said is that each preferment plan will have specific elements. it will essentially forecast tehe demands, and through the forecast, determine procurement. we will come to u.s. estimates

of cost, the impact of rates, and the impact of the financial condition. and given that by its nature it will be a forecast, we will identify uncertainties and what the obligations maybe be over the course of the planning period. the enforcement program requires us to come back to you and report on how we are doing on the procurement plan itself once it is adopted. the other thing the enforcement program does is that it establishes the timing process. our initial plan will be developed in the early 2012, the timing is somewhat a function of the california energy commission's final regulations that they are preparing.

under the act, we want to make sure that we are in sync. so we know exactly what we need to procure. the initial plan will cover from the effective date of the act which is december 10 of this year to the end of fiscal year 2012-2013. it will be june 30, 2013. the plan will include a longterm outlook. subsequent plans will be synced with the budget process. this is a quick summary of the timeline of how we got to where we are now. we did meet with the citizen's advisory committee and the clean energies towards to get their input on the draft plan we have before you today in september and october. we have the meeting with you for the workshop and discussion.

we anticipate more comment between now and december 13. we will come back on december 13 and present the enforcement program as it stands for your adoption. in 2012, we will come back with the first program plan and basically proceed from there. that is a quick summary and i welcome any questions that you might have. commissioner vietor: i just want to understand how this works. for municipal buildings, correct? for municipal power sources? >> operations as a publicly owned utility service, full- service transition distribution, supplies services for the customers. our loads, airport loads, all end-use customers. commissioner vietor: currently,

aren't we 100% or 95% hetch hetchy? >> when we have power, yes. commissioner vietor: the mandate would not apply to us unless we get to below 100%? >> we would have to dip below 67%. as long as we are meeting -- and it goes back to the provisions of the act, the statute. as long as we are meeting our municipal needs with at least 67% hetchy power, it is the remainder that needs to be renewable. 90% hetchy, 10% renewable. commissioner vietor: we would have to come up with a plan to be safe and conservative of 33%. >> 67% is confusing. in a year, we produce enough

power for hetchy. we are never even close to the 67% discussion threshold. typically, we buy whatever power is on the market. we need to buy green power. >> certify green power from wherever. >> things got so bad, power plants went down, who knows what else happened? other things kick in, but that will hopefully never happen. >> there will have to be a combination of drought and the maintenance outages. the concept is that we are only held to 33%. we don't have to go beyond that. in most circumstances, we will be above that limit and it is the remainder that needs to be renewable. commissioner vietor: from a

conservative planning perspective, we should budget at a minimum and identify renewable sources to meet the 33% responsibility. >> in the planning process, we will be doing forecasts of what the shortfall might be, what the surplus might be over the short- term budget planning horizon and a longer-term horizon. we will look at the scenarios, the outage scenarios. from that, we will be able to come up with recommendations given this forecast, what is the provincial level to procure to insure that we are meeting obligations? >> practically speaking, the real difference will be the difference of the cost of the power we now by vs. green power -- buy versus green power. that is probably the amounts we have to budget. >> right, we can look at the

product to fulfil that obligation. >> do we have long-term contracts? >> we have the sunset reservoir. >> no, when we buy power. not renewable. >> for the most part, the current market procurement is on a relatively short-term basis of one year or less. we are doing it to match with thehetchy -- with the hetchy generation shortfall. president moran: any other questions? i think the guidance for the commission would be to keep on going the way you're going. >> i think we will come back to have you officially adopted this one month from now. >> in the forecast data descriptions, can included where

some renewable energy resources would be? wind from new mexico, solar in san francisco, whatever? details, megawatts, whatever? president moran: any public comment on this item? hearing none, we are approaching our closed session. the next item is if we have public comment on any of the items on the calendar for a closed session. >> we have no speaker cards. president moran: i don't see any. do i have a motion to assert attorney client privprivilege? seconded. any comment? >> if i can briefly read the item. the public services facility

consultation chief of security. a property negotiator, portion of three and four parcels under negotiations, rights, and terms. if we will now clear the room, we can move into closed session. president moran: we will now president moran: we took no action during closed session. all those in favor? it carries. any other new business? seeing none, this meeting is adjourned.