more information about reserving one of these locations, call 831-5500. this number is best for special events weddings, picnics, and the county fair building. for any athletic fields and neighborhood parks, 831-5510. you can also write us. or walking in and say hello at old lock cabin, golden gate park. and of course you can find more information and reach us at sfrecpark.org. . >> >> good afternoon. i'd like to

call to order the regular meeting of the san francisco public utilities commission. today's date is february february 24th, 2015, role call please. >> president caen. >> vietor. >> here. >> moran. >> here. >> i have a quorum. a quorum. >> commissioners before you, you have the minutes are there any additions or corrections. >> any publicment comment? >> i'll call for the vote. the motion carries. at this time i'd like to call for public comment on any items that are not on today's agenda. do we have any speakers? seeing none, i would like to change

the order of the agenda today. i would like to move to item number 6 which is the report of the general manager and i would like to take 6-b, the clean power sf timeline. . >> president caen and fellow commissioners and supervisor avalos thank you for the chance to speak before your commission and i'd actually like to speak to item number 7, the urban agriculture program that's being proposed under the public utilities commission jurisdiction but let's first talk about clean power sf and i want to thank the general

manager and staff for working closely with jason freed of lafco and that was a request that came from the general manager kelly and i thought it was great to show that we're building a strong relationship to move clean power san francisco forward and i've been briefed on the timeline and i see that some that some of the things that we expected to be happening at the very end of the timeline are actually earlier so it looks like the more difficult work is going to be around procurement and other things and i believe there's ways to shorten the timeline proposed and it wouldn't actually be very hard to do. the pro can you procurement process is projected to take 3 months but i believe if the puc staff works with me and my colleagues and the mayor we can move this

process quicker than what's being proposed and not waiting for the legislative process but to finish before we draft the requests for offers for power procurement and there's a reform process that will be legislation coming before us before the contract procurement and i believe we can waive the 30-day rule and also time our approach for procurement separately from the actual performed process. i also want to make sure that we're working closely together with the city attorney to make that go forward but most of all i want to say thank you for your work and your openness to move this program forward to the extent possible we can move this forward more quickly let's do that and i know president breed

and the board of supervisors as well is very interested in moving that forward and lastly our outreach process to make sure the san francisco outreach communities are aware to sign up or opt-out and we actually look at how we can involve our summer youth program and to discuss what's happening with the puc and share programs and projects i think that will be a great opportunity for young people i do see there's a public outreach process during the summer so we can involve some great youth they do really great work and the outreach to serve communities with languages other than english that we need to be able to outreach to and item number 7 i

just want to say thank you for the work of the puc on helping to move forward with the recreation and park department and natural areas people and with the san francisco foundation and the urban project that we're looking at, at at maclerin park and draw people in and i think that's been a a great partnership that's happened with the puc and a great example of how the commission is building projects that relate to communities in san francisco and i just want to say thank you for that effort. >> good and i would like to say thank you to you coming before us today it's a wonderful feeling that now we have a cause that we're working towards together and in a very strong way so i thank you for

approving of our timeline it was very difficult to come up with the fastest way to do it and as you offered to give your help towards getting this through quickly that would be greatly appreciated. >> we're working on that and today will be a big step in that process by help filling the seat that's vacant there and we're moving forward and i'm pretty excited about that and i think he's very excited about being the commissioner for all of the work in the public utilityies commission. >> thank you so much. >> can i take the opportunity for you to fast track other projects? [laughter]. >> okay very good. so now we'll move forward with the

presentation. >> thank you commissioners. barbara hale manager for power. what i have here on the on the table is a brief timeline and realistic schedule for for your consideration and the schedule and successful launch of the program will be dependent on a competitive procurement process and a responsiveness to the market and 2 timelines are exactly the same and the first one shows less detail than the second but i wanted to give you the over all picture initially what you see on the screen here. the process lines that you see here begin today with our presentation to you and the key steps of the process are identified where we are engaging in a program rate development

and policy approval process. we're getting california public utilities commission approvals and our revised implementation plan and our service agreement with pge and analysis on our load and what the procurement risks are that we need to make sure we address and the procurement planning process and supply development and then the other contracting services for supportive programs and the back office functions and those are functions that we previously talked about having about and engaging in customer education steps that we had talked about in the program roll out for and then finally our program launch. over all, this schedule is beginning today and

serving customers in early 2016 so now to turn to a little bit more detail. >> that's what you see on this second slide. the areas, and supervisor avalos eluded to this -- the prior program in particular the establishment of the not to exceed rates isn't as critical a step for us in this timeline because the way the procurement was developed in the last schedule had us relying all falling in place based on the rate that came out of that procurement effort and now we have a program designed as the general manager and i described to you leads with affordability and we know that

the rates for our program shouldn't exceed pg and e's basic default rate and we know already what that benchmark is and in this schedule you see that as a milestone but not a critical path milestone if you will and let me emphasize which among these are the critical path milestones we have the establishment of the final program rates showing online 4 and that's occurring in the late september to october to october time frame and that leads and is linked to the establishment of our procurement planning process where we're developing a proposal for reforming our contracting process that was eluded to in the dialogue between the general manager and supervisor avalos and we see

that process culminating here at the commission and adoption hopefully at the at the board of supervisors and the mayor with approval occurring in late june. and that allows us then to go out to the marketplace, develop our requests for proposal and offer and go go to the marketplace to build that portfolio supply to serve our customers and ultimately executed in late september, early october. that let's us, then, come back up to the rate question where we'll be able to use that procurement process and the costs that come out of it to set the actual rate for our customers and with that actual rate, then we'll be able to develop our statutory ly

required rate comparison with pg and e and launch more in earnest our statutorily required opt-out process and occurring in the late november, mid-january time frame. you will recall that that statutorily required opt-out process has us providing two notifications to customers in advance of service to them and two notifications after they began to receive service and this over all time frame we're beginning to serve customers directly in early 2016, january of 2016 and so that highlights the main points of our proposed program schedule and milestones and i'm happy to take any

questions you may have. >> questions? >> thank you very much for putting this together. it's very helpful and of course, i think i share the sentiment with my colleagues and probably a lot of of the stakeholders that we appreciate the accelerated timeline and if there's any other places to be able to accelerate, that would be much appreciated and one thing i have a question about that that i don't really see here is who is going to drive this process? it just seems like there really needs to be a staff person hired pretty quickly to be able to keep all of these balls rolling and make sure we meet these deadlines. >> so i can respond to that. so one of the themes that, even when kim was here, we had a team of folks doing all of this stuff and she was

quarterbacking it and so right now it's a team of folks pulling together to make this happen and so, you know, we are definitely looking for, you know, a person to replace it. kim, however, we're not going to stop and just wait for that and i think, you know, i definitely have the expertise of you know, rolling this out at least, you know, all of the steps and the schedule and i just want to point out the schedule we put together is a realistic schedule, and you know, there are areas that the supervisor pointed out that we could probably accelerate. there's certain things that we can do concurrently but i want to put a realistic schedule out because if you put out an aggressive schedule the only thing is you are behind schedule and you are explaining that and that's why i wanted a

realistic schedule and there's opportunities for us to beat the schedule and we're willing to partner with anyone who can help us beat the schedule and we're looking for a director but we're still going to make sure we meet the schedule. >> great. and i do -- i want to appreciate you, too and i know you are going to step up and lead this effort and make sure these deadlines are met but i'd like to try as quickly as possible to find somebody to help you and really be your go to to make sure this happens and it's a lot of work especially if we accelerate and do concurrent planning which i'd be supportive of as well. >> yes? >> a couple of questions. on the staffing issue, in the old version of this we were having that work and you are taking

on that work plus the procurement? >> to clarify commissioner we're taking on the procurement function and expect to have outside services provided by a noble like and that's really to take the data in from pge and put it into a billing purposes format we'll still have our own staff to do settlement and verification of that data so there's an incremental increase in the workload but not the full workload absent an outside contract or. >> in terms of over all staffing needs, are there additional positions required? are they part of our budget request? how do we do that? >> at this junction time we

have vacancies that were staffed to serve and we're moving to fill those vacancies and we're not hiring at this time additional staff to launch the program and i think that's an expectation consistent with the experience that marin clean energy and sonoma clean power went through and we're looking at additional professional services contract ors to provide us with advice and council support services on procurement development in particular. >> when do we see the program as a whole? and what i'm thinking of is before we got to not to exceed rates before, we had several presentations basically we could see the energy mission and the the

energy mix and the the cost contribution that we were using and look at the funding of reserves and risk and we could see the whole picture. when in here do we see that? >> so we expect to bring our expected picture to you in the form of program designed guidelines and our proposals for reform of the contracting method and that's occurring on this schedule in mid-april so that will be what we are proposing. >> i see. >> and this is a level of detail that you are not seeing. i see you looking at the schedule. it's rolled up in that first line of sfpuc policy approvals and program rates so in mid-april we'll be bringing to you a more detailed program design. in advance of that, we will be having meetings with

stakeholders to discuss program design and policy guidelines and have an opportunity to do some peer and constituent review of what we're proposing and what we think is a realistic program design as well as reforms to our contracting process and expect to bring to you in mid-april and bring back to you after the procurement process to identify sort of what we projected and what we're seeing as the real deal. >> uh-huh. >> that will come back to you when we come back to you for establishing the final program and rates which, on the proposed schedule, is in in late october. >> and what lines what number is that? >> so in the slightly more detailed version, the second page that you have in front of you. >> right. >> it's on row 4 final program rates prepared and presented to

sfpuc. >> okay so first blush is in april and then is that october date that we get to see the -- >> yeah the real thing after we've gone out to the market. the april version is prior to actual market and the october version is post market. >> how how we did. >> yeah. >> and within that i mean there's there's a series of issues. how cca integrates with the business plan. >> uh-huh. >> the business plan is coming to us when? >> that's coming to you the second meeting in march. >> in march, okay. >> where the business plan will address the cca program in a broader context of our work. >> so within that what flavor of

hetch hetchy power will be available. >> correct. >> there's also issues do we or do we not or what ways do we include commercial accounts? >> correct. that's a program design issue. >> okay and so we see -- so for the program design. >> again, that preview in mid-april. >> okay. >> that's when we'll come to you with that after we've done outreach and our own internal work and then come to you. >> okay one of the outstanding questions i had was the risk analysis. >> uh-huh. >> and one of the nice things about dealing with eluded with shell is they as a contractor quantified the risk and we had to deal with it so is that level of transparency lost. >> right and you see that on

the schedule for you on row 8 load analysis and procurement risk assessment. >> okay so we'll be talking about what if any kind of reserves would be appropriate. >> right what the market needs are for us demonstrating security and financial backing. >> okay. and the october -- we also had under the prior plan there was kind of a final approval and we never got there. >> right. >> this would be the october october date when it comes back in its completeness and we say go or no go? >> yes. >> okay thank you. >> your welcome. >> all good questions. any other questions? >> i just -- i imagine we'll have another more flushed out version of this timeline as we go and i think it's important it doesn't really seem transparent where the program

components get reviewed and decided on and i understand it's sort of underlined under program rates and policy approvals. >> i'd be happy to make the full detailed schedule available to you but for today there's so much content it doesn't show up on the screen what i'm referring to is the expanded version so april 14th is the schedule for the program design discussion. >> great it's a lot to carry the business plan piece plus all of the commercial customers all the details of cca and how it relates to revenue and programatically and the rates and the policy conversation with the board so if there's a way to kind of consolidate that and understand that and i don't know if it's via a timeline or -- >> i think the challenge is that we're doing the business plan. >> right. >> and we've been talking about how cca can play a role in

that and so we're going to plan on you know unveiling that when we talk about the business plan as we talk about the line of business cca we'll talk about you know how we phase it in because that goes to the risk and talk about what is the mix that that we're recommending because with the additional head room that you have on the initial offering what we want to do -- do we want to make it more greener if possible or do you want to focus on local build out? there's discussions to be had on that and if we had a second offering the opt in of a darker green we need to talk about that and what is that price what is the mix and how many projects do we want to be able to support so we're going to have to have those conversations but what i think is really helpful this time is that we're going to at least on

the initial offering that people are automatically enrolled in, we're going to lead with affordability and we're going to set that price and figure out what is the best mixture of green versus job opportunities under that. >> and one thing that might help on the schedule is there's a whole but there's a whole bunch of work in here that doesn't that doesn't really involve the commission. if you could tease out of here when the commission is going to be considering which questions. >> yes, absolutely. >> that would be helpful. >> and i'm also hoping, too that you will have marin and sonoma in your back pocket. >> and yes and now now lancaster is now launching and

we've continued to have a relationship with the staff and consultants working with them as we move forward definitely trying to learn from their experiences and incorporate that. >> and if i may, to your point commissioner moran of highlighting on on a calendar where the commission has a role, i might suggest that we also include where the board and where other outside decision-making entities have a role like california puc who is going to have to accept our revised implementation plan because those are some outside of our control activities and i think it might be good to highlight. >> >> thank you. i too want to commend you for this very fast turn around to come up with this as well as our general manager kelly it was quite a task because there's so many

elements that i think most people are unaware of so thank you. >> thank you and the thanks go to my staff so i'll pass that along. >> good. >> i'd like to call for public comment now. jason freed? >> hi jason freed executive officer of lafco. i'm not going to repeat what the supervisor said earlier but i want to thank the sfpuc staff this is a different model and approach than what san francisco had been looking at doing in the old version and they definitely took that model to heart. there are different key points now that didn't exist before and other key points in my opinion are not as relevant as they once were. and so we know what our base energy costs are going to be and determining staff costs for

the administrative part of the program and that's the key part to get to and based on what supervisor avalos said i agree with the timeline. it shouldn't be a political decision but what's the best time of the year for san francisco and when is the best time to launch and if february is what staff is saying i'm fine with that and the drafting of the rfo and that that can be done while the process is going through the board of supervisors and there's no reason if we worked with the board and mayor and everybody is basically on board but it's just going through the process why can't we draft the rfo's and the day everything is finalized and set in stone and approved by the board and mayor so taking that 1 month that you

are drafting the rfo and putting it into the board process means it's 1 month quicker to get to the procurement contract and what can the rate potentially be and all of those items starting with 16 and move down and go back up to item 4 so when you have 16, 17 and 18 on your more detailed version and going up to item 4, all of those get moved up a month and the other thing i'll put in play on this is also making sure while we're drafting the rfo and i'm not going to disagree that 90 days is the correct window to have i believe that the bos is going to move this quickly through and if i were a betting man i'd say it's not going to take 90 days probably closer to to 60 days. you should