an understanding with the mayor as we move forward and i also want to thank mayor lee for his support for this program. what i would say is that it is an historic moment, but those of us who have been working on this for many years know that community choice aggregation has had many historic moments along the way and every time that those moments happen it's very exciting because you think of the possibilities, but i think that as i said at the earlier press conference, i think the devil really is in the detail and the work that we do in the next few months will show whether or not this historic moment is truly as historic as we hope it is. and i think that it really comes down to having very specific timelines and

having an aggressive robust agenda. and i appreciate that the general manager is also here and i know this is a priority for him and i like forward to working with him. someone at the press conference noted that one of the things that has been missing from this program, three things, he said jobs, jobs, jobs. i think it's true. jobs are important. there will be different moments throughout this process where there will be deficiencies in terms of the program. no program is perfect. there will be no perfect program coming out of this process because no such thing exist. there will be things that each and everyone of us will probably want to see in the program that are not in the program to the full extent that we would like. it's just the nature of any program of any project as complicated as this is especially when you have the different interest that are implicated.

i don't think that the missing piece has been jobs or for that matter anything else. i think the missing piece for me is the political will. the will to actually put a program in place. i think if the political will is there that we can work together to have a program that creates those jobs. that have a program that actually addresses the climate change as so crucial and that addresses the very important practical concerns that have been raised by the puc along the way. i think if each party has that political will, this program will be successful. if it is not successful, it will be because that political will is not there. the one thing that i want to say is that as we continue down this road the one thing that i want to be very mindful of is that for

me it's not just about addressing climate change which i believe is the most significant issue facing not just san francisco, the country, but the world. but it's also about creating independence from pg & e, or at least creating some competition for pg & e. i think that one of the reasons why the city and county of san francisco has been where it has been when it comes to its power and energy is because we've had a monopoly for many years. you know, i grew up and was born in guatemala, and in guatemala, in the town that i grew up in power went out all the time; and as someone who was living in a third world country, you never thought something like that would happen in the united states. yet, in san francisco the

reliability of our system is not what you would expect and if you can ask so many of our residents who have had to deal with issues over reliability and the reason why that's there is because we have a company that has had a monopoly for so many years that it hasn't had the incentive to really address those tissues in the way that you would expect. so one thing that i am very fearful of i don't want to see cleanpowersf to be a trojan horse supported by pg & e. that is a very real fear that i have and a very real fear that many of our advocates have. i look forward to working with you and i think it's very exciting and those who are making it a

priority and making it very clear. what i said to president breed is we need to make sure to expand the level of engagement throughout all of san francisco when it comes to community choice local aggregation and that includes the diverse community and community of color. that will make this effort work. >>supervisor john avalos: thank you, commissioner campos. commissioner breed? >>supervisor london breed: thank you. i think after more than a decade we have almost won the unwinnable fight in moving cleanpowersf forward in san francisco. this is a huge step and huge accomplishment and as we all know

cleanpowersf is one of the things we can do and it has been one of my highest priorities as supervisors. i was told that clean power was dead and we wouldn't be able to get it done. we didn't stop adrenal -- and didn't stop dreaming. the commissioners of lafco continue to bring it to the forefront and we are thrilled and excited to know the mayor is on board to help us move this forward. right now the political will is there and it's our job to hold the political will accountable to making sure the details of this program are the kinds of details that we believe will make sure that this program is a success. so i just wanted to thank some of the folks that i have been working with on this particular project and starting with my colleagues, supervisor avalos has definitely been a champion along with supervisors campos and

mar and supervisors and commissioner cynthia crews. they have all been dedicated to this program and lafco member jason fried and many of the advocates who have continued to push this forward and one of the most dedicated advocated help with david brooks and the rest. this is really a historic moment and i'm looking forward to this meeting along with the members of the puc commission. i know and that you are dedicated to making this happen. i'm looking forward to a date when these rates can be set so we can move this thing forward before the end of the year. so director kelly, we are going to be watching you along with your staff and working together to get

this program implemented in a timely manner. when i say timely manner, i don't mean december 31, 2015. a lot of reach has -- research has been done. thank you very much for vig this joint meeting with us and looking forward to the dialogue to have our cleanpowersf launch for our great city. thank you. >>supervisor john avalos: thank you, commissioner breed. i appreciate the work that you've done with the mayor's office on helping move this forward and i agree, december 31st, is way too late and my comment was suggesting that we get to the summer to get to the launch. i know that is a lot of work, but i think we've done a lot of work to help things move quick lau e

-- quickly to launch as soon as possible. are there any other public utilities commissioners who would like to comment? okay. seeing none, you can press that button if you want to. let's go to the next item, please. public comment. no remarks. we'll have ample opportunities to talk about what we've talked about today with our opening remarks. with that, i see no other members coming forward. director kelly. >> oh, i'm a commissioner, great. i get to vote. i just wanted to say a few words and again i really echo everything that was said today and i do feel that it's a timely meeting joint meeting and as you know, the puc staff and i have been working

with the commission, the board of supervisors, lafco and the community stakeholders for some time to identify a path forward. in fact, i felt like a student going to the principal room when i'm going to the board of supervisors and commissioners that is really urging the puc to move forward with cleanpowersf. the joint announcement with mayor lee and board president breed is really great with the program that has been articulated to advances greenhouse gas reductions and more jobs. i would like to thank the board of supervisors for their product ive partnership on a number of issues we face. we work to address our financial picture. your supported rate in creases for the general

fund for the balance. we are issuing power bonds to support infrastructure upgrades. we are also developing our business plan for the power enterprise and looking forward to share that with the commission and the board. we've done a lot of work this last year to set a solid foundation for the power enterprise. i do believe the time is now that we develop a new line of business and that business is cleanpowersf. i look forward to continuing to partner with all of you to achieve the goals giving san francisco residents an affordable program to offer options for a greener product and local build-out for those who can afford it. thank you. >>supervisor john avalos: very good. thank you general manager kelly. seeing no other commenters. we have one member of the public who

still wants to come forward. please come forward. >> hello, my name is linda weiner. i represent the sierra club. i did speak at the news conference this morning. we have worked for 11 years with many of you on trying to get this program passed. i would reiterate what everyone has said that looking forward to a no later than that november launch date and for a utility rate. something dawned on me. i worked on ab 32 in sacramento the global warming bill. even though it's set up the implementation of the state level, what cities do will feed into that. the more we can get clean power set up it will make the program in cal more

effective and other states are looking to that and i hope that by doing what you are doing it will set an example that will go beyond just this city. thank you very much. >>supervisor john avalos: is there any additional public comment? seeing none, public comment is closed. we'll move on to our next item. we'll reopen public comment. there will be another time to open public comment. >> is it possible to make a public comment now. >> public comment is open right now for our opening remarks. we'll have public comment for each item before us that we'll discuss for public comment as well. if you have to leave now, this is a time to speak for public comment. >> i do have to leave. >> you have two 2 minutes. >> okay. thank you. my name

is joe merably. i want to thank san francisco and mayor lee and joining with the board of supervisors. the great weather we are having and there is nothing wrong with enjoying it. it comes at a cost. climate change is doing great harm to california. as we go into possibly our fourth year of drought, the lack of water for farms and wildfire is likely in the near future. we need san francisco and california to head take the lead on climate change and we need cleanpowersf. as a former customer of green mountain energy i really look forward to being once again a customer of such a program. so i urge sf puc to take action on cleanpowersf

as early as possible in 2015 and give the citizens of this city and great opportunity to contribute in addressing climate change. thank you. >>supervisor john avalos: thank you very much and thank you for mentioning green mountain. we'll close public comment. is there any additional public comment? seeing none, public comment is closed. next item. >> city clerk: enernex reporten titled quote local build-out of energy resources of the community choice aggregation program ". >> jason fried from lafco. you will see in your packet is a report of the program being launched. one of the things we did after the work by puc

staff moving forward on the program what lafco did is look at the studies of the issues that were brought over the years of issues and concerns why the program was not brought forward. we came up with a 12 task report that would outline all of those items and you have all of those 12 in front of you. i won't go over each item individually but we wanted to touch on all the issues coming up and we want to see how to come up with a plan before you. we have bids on this task. you can bid on entire project or portions. some bid just on individual portions of it. of that we have the winning bidder of enernex and we have some qualified bidders with

some subtasks if we needed them. enernex did such a great job that we never went to the other subcontractors to do the work, but we can use them if we need those. i will give the presentation to enernex and you can ask them questions from that report. >> hi. i'm with enernex and i want to

thank lafco and puc for working with this. my understanding that questions were raised for cleanpowersf. my task is to answer questions that have been raised. i'm going to go over the highlights of this task that we are going to address. an introduction. enernex is a power source engineering firm for large wind generation and we've done that throughout the country and we e take modern technology and help utilities implement those illusions to run more efficiently. we have partnered with will dan

to help those cities implement programs and helps with economic aspect for those municipalities. we have collaborated with will down to come up with their facilitation plan on their cca initiative. what we did for this report is review a lot of the existing documentation. over 55 reports we reviewed and within the report you see some variability of some of the numbers stated because different reports had different amount of generation capacity for different generators, the solar capacity mice change on a specific location. the expected cost would change. one of the next steps would be to go back to say if you are proceeding with

this specific project, how big is it goes tools -- going to be and cost. given the prior reports we did what we could to address the questions at hand. we collaborated with both sf lafco and sf puc since last spring to address these questions with multiple iterations on this report and feedback to present the work we are finding today." the first question was whether sfpuc could find the procurement role. this was sped expedited. really the answer is yes indeed sf puc does have the capability to do the power

procurement on behalf of cleanpowersf. one caveat of that is the realtime management of electric power. electricity is different than other commodities in that the supply of electricity must exactly match the consumption of electricity in realtime. at this point the sf puc works with other vendors that engage with the california independent system operator in order to ensure that that matches in realtime and at least in the near term in part because you have to have 24/7 operations to support that as the report states in the near term we hope to partner to make that work and sf puc in subsequent development may look at eventually look at that internally. one of the big next things to

look at is the timeframe and cost parameters for these various build-out opportunities and cost and competitive rates. one of the introduced opportunities for dark green and light green, renewable power and heavily renewable power for customers. the exact mix and cost for those options need to be finalized with the goal being competitive with pg & e rates. so working with sf puc on the commission it should be possible for the sf puc to fulfill that role that was initially envisioned to be supplied by shell energy. the next question was the timing and economic benefits of local build-out and some of these tasks really were related to each other. so

this also relates to one of the later tasks. you have the potential to realize the benefits, the economic benefit of the local build-out and this translates to how much, how many dollars per cost of mega watt. on the chart here is down to dollars per watt so what will reflect what customers will see. you also have the build-out construction pay jobs. i understand the jobs were one of the questions raised for what kind of economic development and using the nrel. the development impact tool that we use to refine and estimate the construction phase jobs in terms of dollars or jobs per million dollars spent per construction as well as the

assumed operational jobs after the generation station is up and running. and we'll go into more depth into some of these on a later task. so this is a high level summary assuming that all the projects that were listed are computed executed for total cost and jobs per million and operational phase jobs in total. so, if all of the initiatives that were listed were actually built you have the opportunity to achieve this much economic impact. so, using the google maps we were able to, sorry the audience can't see the full

slides here. thank you very much. there are various pins for the actual locations on each of these projects. you see that we are in the san francisco area and some are in the surrounding region. the report points out which are the regional jobs and which are the out of regional jobs and we use that 70-mile perimeter as the line of demarkation. that was not refined enough and i don't know if they are which can say how many of these jobs are because you don't know who is commuting. >>supervisor john avalos: what was no. 1 in terms of the different projects. the project no. 2? >> project no. 1 is not on the map. it was regional. we did focus on

these regional ones. >> the next aspect is the energy efficiency strategy. it was referred to the inside management and with the inside management you talk about energy efficiency. so helping customers get the most out of their electricity use. demand response. we are asking customers to respond to pricing and other initiatives as well as solar because you have the large solar construction outlined on the prior projects and customer solar incentives for solar sf program to encourage customers to adopt solar. so energy efficiency funds can be collected from customers currently pg & e and california investment

utilities collect a charge for energy efficiency initiatives and using the prior cpa's have a precedent. there has been a transfer of some of those energy efficiency funds over to the cca to utilize locally. it's envision that cleanpowersf can talk to the california public utilities commission to collect some of those pg & e funding for your own energy program and initiatives. the funding level if you see the line chart here there is a 25 percent of 50 percent or 100 percent. that has to do with the incentive level. it's to do with the energy efficiency programs that the program would contribute some funds and the customer themselves would also contribute some funds and the question is when you come up with an interview program like

that, what percentage of funding is supplied by the program, what percentage of funding is supplied by the customer. of course the more the customer contributes, the more overall is invested. so, each individual ee program can take a look at what type of incentive level is appropriate for that. >> can i ask a question. is there a certain percentage or maximum that the cca is eligible for? >> the application would take a look at how many customers cleanpowersf has and take the total number of customers collected and that will determine the correct number per transfer. >> i see, thank you.

>>supervisor john avalos: i'm hearing it's difficult to hear in the back. can you speak closer to the microphone. >> is that better? i will try to speak louder. during some of the earlier studies, the question was how to approach commercial and industrial customers. one of the interesting aspects there were commercial and industrial customers that approached sf lafco and sf puc and they were interested in joining the program. the actual cca law legislation requires that the cca offer service to residential customers, but it does not require that you offer service to the commercial and industrial customers. so for a variety of reasons

we highly recommend that cleanpowersf does work with industrial customers and giving them every opportunity to join the program, in part because per end point the commercial industrial customer uses more electricity than an individual residential. so there is economies of scale there from a business standpoint of working with industrial customers especially those that are motivated to have a higher renewal supplying their electricity. there are companies in san francisco that have that idea. here we are combining a couple of tasks. task six we talk about renewable and task