i understand it from their filings need to go through a solicitation process to hire a third party contractor to perform the program implementation and we're thinking it would probably be a tariffed and ready program by maybe around february of 2014. that's all very tentative at this point because as i say it sorts of makes assumptions how that process is going to go with the cupuc, but at this point they're anticipating settlement and proposed decision. >> ms. hale could you elaborate about the code of conduct? what are the elements of that? if you could summarize what is before the puc with that? >> i can and we have city attorney here who is also familiar with this and perhaps could fill in some of the gaps for me. the code of conduct largely came out of the -- the law that created the code of

conduct requirement came out of the experience that pg&e and marin energy had when marin energy launched its program so the code of conduct puts certain restrictions on both parties, the utility, in our case pg&e and on us as a cca. broadly speaking it prohibits either party from misleading customers. it requires that any expenditures that pg&e incurs to actively market against the program cannot be reimbursed by rate payers and shared by shareholders. it allows pg&e to answer questions and educate about their program and how it compares to our program. it requires both parties to work

with the california public utilities commission public advisor's office to create a comparison document that would be made able by all parties on the two program offerings. so that gives you some of the key elements. >> and the code of conduct you said is in the process of being approved or is approved. >> so a proposed decision was drafted and sent out for comment by the cupuc staff. it then by state statute sits before the body for not less than 30 days before the commission may adopt, hold, or modify and then adopt the item. >> very good. do we expect that the way it is now to change dramatically? that some of the restrictions could be challenged? >> comments on that proposed decisions have not yen yet submitted. my guess it won't

be changed dramatically. >> okay. thank you. >> >> you're welcome and if it's pleases the chairs i will move on to number five, the customer education program presentation. >> okay. >> so what i have before you and on the screen if sfgtv could help. thank you. a program description of our customer notification and education plan. this is our plan as conceived to ensure that we are very responsive to the direction we received from the board, the commission, the mayor to make sure that we are really educating our potential customers and not having any accidental customers or gotcha customers enrolled in the program given it's an opt out program so what we're asking

for today is an opportunity to present that program to you, to get your guidance, and to ultimately if it pleases the public utilities commission to receive their endorsement on the overall framework of this plan. what you see on the screen here is the overall program elements. i'm going to dive a little bit more deeply into each of these as we go through the presentation and i am happy to take questions throughout. so beginning here in the quarter we're in right now we have, just as a reminder over the last three years under taken a extensive outreach program to the community here in san francisco. it's been a multilingual effort and retail in terms of face-to-face engagement. it's been fliers and multi-media so far, and what we came out from that effort of gathering information and engaging with customers, potential customers, are

there's findings that have shaped our cleanpower sf program offering and that is that san franciscans will pay a premium for a premium product, that 100% renewable product. we have a geographic understanding of the customers most interested in cleanpower sf and those are the customers we propose to focus on in the first phase as we roll the program out and we are anticipating there is sufficient interest in those areas to offer about a 20 to 30 mega watt program here in san francisco. this map shows you the interest or the propensity to stay with the program as we roll it out. with the darker green showing the most interested, most likely to stay

customer locations, so you can see it's fairly concentrated, and a broad enough area to encompass about 20 to 30-megawatts of san francisco load, so that's really our first target audience , so within the fourth quarter we have this input to this point and looking for endorsement and your comfort level with the plan that is detailed in your packet, and then i will go through. a key part of our program is to make sure that customers understand the financial impacts if they choose to stay with cleanpower sf, so what we're showing you here on this slide is the tier by tier impact, and those are

tiers that your build by pg&e on, and the tiers reflect how much you consume. most san francisco households are in tier one, that first row, and if you stay with me on tier one you will see that we're projecting customers -- electric portion of their pg&e bill to be around $21.97 in 2013. if they stay with our program and the 100% green product it includes they will see a premium of $11.54 they need to pay for that product offering so that their average electric portion of their bill will be about $33.50. that represents about 52-point 5% increase on the electric

portion of pg&e bill in san francisco, and about a 29% premium on the total pg&e bill a customer receives each month. this is updated information based on the guidance we got from and the direction we got from the board of supervisors to make sure that our rates recover the low -- the subsidy to low income customers and to ensure our rates recover the -- begin to recover at least the financial collateral the city has applied, the security -- the city has applied to this program, so these are new rates. these are new premium statements factoring the two cost adjustments in. we're going to take that information out to the potential customers in a new survey. >> do we have on the slide, you

know, estimate of what pg&e exit fee would be? is that included in the slide and the figures here? >> so exit fee. so any customer -- any customer that stays with the program after the first two opt out notices -- let me back up. if you don't want to be part of the cleanpower sf program and you tell us that there is no departure charge that a customer incurs that we are charging. after the program is launched if you then decide -- oh i got my first cleanpower sf bill. i don't want to be part of this program. we are still as the city saying there is no charge to depart from the program at that point. pg&e doesn't have a fee to exit the program during that portion of the time either. >> they don't have a fee that

charge it's. >> the fee that we do include and maybe what you're referring to is the cost responsibility surcharge where if a customer leaves pg&e's bundedel service and comes to a cca pg&e will take a portion of the fees they used to charge that customer and those fees will follow the customer so the bill premiums that i am showing here include that as part of the premium so this is all in image of how your bill changes even though it's something we're not charging and pg&e is charging and they joined the program we're including in the numbers so it's transparent to customers. >> and that fee is reflected in every monthly bill? >> yes. it's on a separate item from pg&e on the cleanpower sf portion of the bill and there is a separate page that -- this is

typically how it's happening, a separate page what pg&e characterizes as third party charges and those are the city and county of san francisco charges to the customer. >> and how long does pg&e have the ability to charge that fee into the program? >> it's not clear. that gets revisited on a regular basis by the california public utilities commission. >> okay. thank you. >> you're welcome. >> excuse me. i'm sorry. i have a follow up on that as well. is there a way -- i know we will talk at some point after -- it's separate, but the local build out conversation, and in the financing of that, and i'm actually at some point i think it would be have to have a lafco joint meeting that talks specifically about the financing of local build out and it's not on the agenda today, but perhaps one of the things that could be

looked at is exactly what we're talking about here -- i don't know, fee structure, and if there is local generation that occurs that perhaps there is a conversation or some work that looks at those pg&e fees, and since it's really no longer going to be a pg&e provided service because it's generated by a local build out project perhaps there is a financial mechanism that could take place or enacted at that point. i don't know. i don't know if that has happened before or some of the other nationwide programs that exist, but i imagine where that financial relationship begins to shift. >> it could be. the sfpuc has been active at the california public utilities commission ever whenever this issue comes up for evaluation so we're on the look out for opportunities to argue to have only justified and reasonable costs follow

potential customers into the cca service provision, so it's not a charge that pays pg&e for kilowatt hours that are provided to the customer. there is no relationship between what the customer consumes in terms of the portfolio serving that customer and the cost responsibility surcharge. it's sort of an over hang cost pg&e is allowed to charge to make sure the customers that stay for pg&e pay for cost it incurred on behalf of customers that left. >> commissioner olague. >> yeah, i guess -- it reminded me of pass throughs and tenants get charged sometimes for the increases and fees that the landlords have and i wonder how that worked ultimately but you kind of answered. >> okay. >> -- what i was thinking, but

i guess i am concerned a little bit -- of course we want to definitely inform customers about these increases and rates that would result as part of this clean power shift, but i think -- i guess at some point i would be interested in understanding how that is going to be marketed or what language or what script would be used, because ultimately the goal isn't so much related to, you know, -- well, i have to be careful how i say this i guess, but i guess the goal the city is reach 100% renewable electric supply within 10 years so we have these -- i think very lofty values in a good place so i want to make sure when we're approaching and informing customers about the incomes in

rates that. >> >> increases in rates that it balances with some information about the value of trying to reach these goals that the city has put forward which have to do with makes sure that we get to 100% renewable electricity supply within 10 years, so i think how people are informed is pretty critical. >> yes, yes. and that's largely why we're making the presentation today is to talk through what the different methods are. >> yes. >> we don't get to the level of detail of actual scripts but we do have examples of the questions we will be asking and the information we will be providing, and this bill premium chart is a good example of just the level of detail we can provide customer when is we talk with them because we will know what tier they're in and can say what your typical bill is like

today and what it would like if you stay with the cleanpower sf program. >> it's deeper than the cost. some people see the value and investing in a sustainable future. >> right, and so talking about the product. >> and this is put on. look you will see the increases in your bills and then people might be inclined to opt out if they're not reminded of the value behind the clean sf program. >> i understand and i take your guidance. thank you. >> we have -- go ahead. >> thank you. one of the issues reading through the material was the issue -- it's really an issue of auditing and that is who will determine the pass through cost that pg&e shifts to its shareholders versus to the rate payers? is that a function of the state agency or do we

have independent jurisdiction over that process? >> we don't have independent jurisdiction. it's within the purview of the california public utilities commission. our role really is only as an active party there to try and influence their decision. >> so we wouldn't procure the services and audit and whether pg&e is following through on the commitment not to shift the rate for the rate payers and opting into our system? >> i don't know that we would be barred from asking for audits, but it would be a discretion -- it would be at the discretion of the cupuc. they can audit but we don't have independent audit rights over -- >> [inaudible] >> we do for the franchise agreement. >> right. but we could recommend for the puc to take

some action. >> i see the city attorney has advice for us. >> the proposed position is audits every two years with the code of conduct rules and rules of compliance. >> and that includes those factors that i raised? >> the code of conduct rules are the ones that would prohibit the utility rate payers for paying for marketing against a cca program. >> all right. i didn't see the specific language so if you could provide it to me that would be great. thank you. thank you mr. chair. >> thank you. we have a couple of the people on the rooster who would like to speak. commissioner pimentel. >> do you know how the focus groups will be assembled and if they will have a diverse group of individuals throughout san francisco, and also in terms of the presentation do you have a break down of the presentation throughout san francisco in terms of districts? >> i'm sorry. i couldn't hear the last part. >> you want to speak right into

the mic. >> in terms of the focus group how will you find the individuals for the focus group and will they have a diverse of individuals throughout san francisco and in terms of the presentation and distribution do you have a general idea of the break down throughout districts? >> so on the focus group formation we will rely heavily on our contractor to identify individuals, but we are looking for a diverse and representative focus group. in terms of the break down -- no, our focus is on those areas of the city that as the chart shows are in the deep green sectors and so those are the areas we will be focusing on. we do have detail numbers behind the picture that we could certainly share with you, and have shared with the

puc previously. >> okay. very good. commissioner mo ran. >> thank you through the chair do we know what the pg&e premium is likely to be for their green offering. >> in their initial proposal it was stated if memory serves me at not more than 2 cents -- 2.5 cents over what they currently charge customers b again that is a proposal. it will go through the cupuc process and may change. >> when you say 2.5 cents is that literally -- like the $21.97 would go to $21.99? >> harlan kelly, general manager, so it's about $6 per

month versus 11-dollar premium that we have equivalent to $6. >> yes, and that's for -- that's reflective for the cost difference between providing a renewable energy credit versus firmed and shaped renewable power, so it's the product difference that is embedded in that price difference which goes to commissioner olague's statement that people need to understand the value behind what the price premium is addressing. >> and credit that pg&e can purchase rather than generate the clean power themselves . correct. >> correct. >> and we limit that component to 5% of the overall portfolio. >> thank you. commissioner

moran any other? >> no. >> commissioner vietor. >> yes, i had a follow up with that. with the code of kukd and the script and how we talk about the cleanpower sf and the pg&e offering and i don't know if that is sort of -- you talked about that internally i imagine but i think that would be a very important part of the roll out plan and the outreach plan is when that pg&e offering does come online how it will be talked about to the tar communities and the other groups that we will bring in down the road and i wanted to highlight that. i think that's important piece of the outreach program is how -- while staying within the bounds of the code of conduct --

>> right. >> how do we that and the 100% renewable and the 20% offering and really shows this is about a clean energy future. >> right and we will have the challenge of holding a potential customer's attention long enough to explain the differences as well and to educate on those nuances of renewable energy credit versus bundleeled kilowatt hours and it's complex and i don't know how long they will colerate -- tolerate us on the porch talking but that is a key part and the education component in order to survey them and what they think is an important part of it, so we will be conducting our third city wide customer survey in early january to test this new premium price that we have

established and as well as this and the pg&e green tariff option is available to them. we will use the results of the surveys then to redine the roll out of the program. it will help us make sure we anticipate the right number of -- right percentage of opt out across the city, and we will take that heat map i showed you with the green and that survey will modify the specifics of that heat map again because we will have better information once again about customer acceptance of the program and then that wraps up the first quarter and we will have enough information then to come to the public utilities commission and ask the public utilities commission in about february to adopted -- not to exceed rates. it's our projected rate that is behind

that bill premium i showed you, and that will begin the statutory rate setting process in the city that provides those rates that are adopted by the california public utilities commission to be placed before the board of supervisors for consideration, and so by mid-march we should have clarity what the not to exceed rate, what the affordability bar is for launching that cleanpower sf and that takes us through march. >> has there been a lot of thought about actually trying to get closer to an actual rate rather than a not to exceed rate and outreach? what is the thought about creating the outreach plan? >> yeah, so the actual rate will be adopted probably in about the august time frame and the way -- well, the factors that play that are causing us to take this

approach under our shell master agreement -- once that is signed then shell is able to present to us a portfolio of resources and a price that they are willing to commit to for the four and a half years. that's going to be the price that actually sets the actual rate. in order to have that firm commitment they need to make a quick turn around decision with us. they will survey the market. they will look at the resources at hand. they will make a price commitment. we will need to say yes we will take it in a fairly short turnover time, like 48 hours, and so that allows us to know the -- the not to exceed rate allows us as staff to know what is considered affordable when shell comes with a final rate that we can factor into the rate model. is that going to result in a rate below not to

exceed and if it is we as staff will come to the commission and may the general manager sign this confirmation with shell, and that's what a lock in the price that we will pay to shell and that we will be the basis for what we charge our customers for four and a half years. it's that approach that allows us to commit to a fixed rate for that four and a half year period. it escalates over time but we we will know what it is and stability for customers at a rate they never experienced with pg&e before and that's an attractive aspect of it, but it requires the two step process on the rates and before we ask a customer if they want to opt out on the program we won't ask them with the not to exceed rate, but with the actual rate, so at that point when it's fish or cut bait time customer they will know

what it is. >> they will know what it is? >> yeah. >> commissioner olague. >> yeah. it's along the lines of commissioner avalos asked. what is the time frame? when will we have those figures? it seems premature if we don't have those and seems like we're misleading the public. >> right. we don't do that until we have the rate. >> the not to exceed really will allow. >> by january we will have those numbers. >> we're not surveying people in january. >> okay. >> we're still isn't notification and education phase at that point. we're not proposing to serve a customer until october under this program. >> okay. i guess i am wondering if we're surveying people do we have these actual rates and not to exceed rates in place --

otherwise we shouldn't be surveying people if we're misleading them. >> we don't serve anybody -- >> i mean surveying. >> oh surveying. excuse me. >> okay. >> i don't see the point to surveying people if we're creating some kind of maybe anxiety or fear around these rates that may not end up being the reality. >> so i just wanted to point out that the reason we're surveying is to measure the appetite of what that price point is, and so what we're seeing -- >> okay. >> what number would be you be comfortable staying with this program? and we're seeing based on the numbers we're seeing now and if we get the same number now would you stay in the program for all these benefits that this program will offer? and it's consistent with what we have done better and