system that we considered regional and we took the local hiring ordinance and said anything falling within the local hiring region would qualify as a local or regional job it's too hard from an economical scale san francisco being so small you can't do an economic report that's really san francisco based you have to look at a broader based area and they are two different models but similar in nature and you will see numbers missing those were projects that actually fell outside the regional jurisdiction and they took those out of this particular slide here and went through energy efficiency strategies that could be used emphasising the work and the city has the availability to apply for those

moneys and some moneys actually still have to go through pg&e and they were pointing out some of differences and also the early discussion of this program was that it was going to be mostly focussed on residential but commercial and residential would be involved. it was in some ways on the back burner in some instances and so while the big picture stuff was on the residential and they were bringing up yes we know commercial can be done and highlighting some some of the things already in the program and the importance of of the commercial and industrial to the program. if we can change our climate and start reversing it back to where it needs to to be we might have some extra

resource in hetchy and how we can utilize that better for for the residential and commercial customers in the city would be able to access hetchy if there's excess available after the city meets their net and solar incentives and behind the meter work and then they looked at how financing can work around these programs and looked at next steps and i guess i'm missing the one slide i was looking for for here. what they did was took all of the big commercial projects we have available to us right now the city knows they exist and i want to be blunt about this -- some of them are not cost effective right now and if you did build all of them became after analyzing it over 9 thousand jobs could be created not just locally but also regionally and

statewide and the number gets cut down if you go to a regional based project. the city generate can s enough energy for its own needs we already have enough energy for our own needs we need more customers where do you find more customers? you can try to bring in large commercial customers. we have the bayview hunters point project but the biggest thing you can do immediately right away is launch a cca program that will bring in a whole bunch of newcomers and gives you the ability to go and look at which of these projects should we start to look at. it's going to be a to be a ten, , 20-year down the road type of thing. if we just kept this program in

san francisco and reduce energy use we actually have more projects than even the cca customers at 100 at 100 at 100 percent enrollment would need to use. so that's one of the key things and the other key thing there's a lot of desire to have energy efficiency and behind the meter work analyzed they said they would love to but it's not ready to be to be analyzed yet. you need to figure out what all of your administrative costs are and your power purchase agreements and say here's how much it's going to cost us and here's how much our rate is and set it a cent less than pg&e so you can claim to be to be cheaper and that gap tells you how much money you have for build out whether it's energy efficiency or behind the

meter solar whether it's large-scale, you know how much money you have that's when you can then determine what kind of programs we can offer and how much can we actually build with this program when we get launched and that's the key thing and we issued this report in january it was actually out in early release and drafts and being finalizes and the mayor's office announced they then therefore wanted to do this work and at that point i'm going to hand it to assistant manager hale and i wanted to mention one key thing the sun shares program is a great program. we we should be figuring out how to utilize that program and sign up for a hundred for a hundred percent green program and then also how do we maybe create an energy efficiency program that uses

that same type of model. we find contractors who can do the work and get those customers into a program how do we build on that and multiply it for a bunch of things that can that can be utilizes in a cca program so i'll hand it over to assistant manager hale. thank you. >> thank you director fried. >> okay all right. apologies assistant general manager hale. >> no problem thank you it's nice to be here this evening so barbara hale assistant general manager. we worked as mr. fried mentioned we worked in collaboration with enernex and lafco to prepare the report that enernex put before the

agencies and there's five key points i want to emphasize from a business perspective. first setting the energy price and figuring out the mix of supply you can afford and mr. syphers made the same comment. phased implementation is smart with a two-tiered offering include light green and price -- the basic first tier light green type of offering at pg&e rates include build out out with expansion of the program and finally it may impact rates. it's sort of a tension that we all have to keep an eye on. the study was very helpful to us. i think we have good strong policy alignment now which was something missing prior to the study effort.

we've also, while that study was underway and collaborating on it, we've also been doing our own business planning effort at the at the at the puc that business plan outlines our business opportunities including community choice helps us target our efforts to bring the benefits of the hetch hetchy power system to san francisco and it targets doing that in a financially sustainable manner. the business plan effort is scheduled to be discussed with the commission over the next couple of months and result in a finished product this summer so that will help my commission put all of the efforts we have underway sort of into context and it's our task at the staff level to develop an integrated program design for our community choice program. the program will be designed to lead with affordability to

provide environmental benefits and provide options for san francisco programs and projects that will bring more associated jobs. we're also, you know, consistent with the enernex recommendations and mr. mr. syphers recommendations with that two-tiered offering. what sonoma calls clean start -- the basic opt-out to compete about pg&e's current default service that san franciscans are offered and the enhanced san francisco offering the second tier i casually refer to as opting up, it's the step up, right? there's a phrase there that we can use for marketing this i haven't quite figured it out yet but taking suggestions [laughter] and that's the dark green or the

evergreen for marin and sonoma respectively and we're completing our business plan and we're staffing up we just announced today that a current staff member of our michael hinz will be the lead as an acting director of the program and just heard today we now have authorization to fill the position so i'm excited about that breaking news. so we need to identify and obtain re-vised purchasing authority as well to implement this program in a cost efficient and competitive way san francisco has a lot of unique to san francisco contracting requirements that really aren't xat aren't compatible with competing in a marketplace and

requesting some changes to the cities contracting practices as they apply to renewable generation for wholesale use by the puc and continue to monitor pg&e and that should be advancing and we're also monitoring the other cca efforts there's so much to learn there as mr. syphers has demonstrated tonight and completing and presenting our rate setting and program design to the commission and preview it with them on april 14th and once we go through previewing it with our commission we'll take it then to our rate fairness board where we'll set the not to exceed rates presently scheduled for for april 17th. we're hoping -- see, we can move fast and that's actually faster than the

published schedule so we are trying to apologies to squeeze out time on that schedule where we can. after that april 17th meeting hoping that the rate fairness board board will be comfortable adopting the not to exceed rates and able to advance the schedule a little bit more move up things a little bit faster and begin the procurement process and request for offer going out into the marketplace to solicit the power and other service offerings and then we'll be launching the program at the end of this year expect to have full enrollment in the spring of late winter early spring of 2016 and we'll have completed the post bill opt-out notification requirement so we will have completed the statutory ly required opt-out

period that begins before you provide service to customers and ends after so they will have received a bill and they will know of the change in a more real way and they can potentially opt-out and so by this time next year we'll have a fully enrolled program and our initial offering will be around 30 megawatts which is around 270 thousand san francisco accounts. that's my presentation. happy to take any questions. >> all right thank you general manager hale. all right. thank you. yes, director raphael. >> wow that is fast that's exciting that's moving very fast thank you barbara. something that director fried brought up that that that i hadn't thought about and i'm interested in barbara and geof

commenting on is this mix of residential and commercial so geof can you talk about how you guys solved that and barbara how you see that? >> as mr. fried referred to there's a requirement to offer service to residential customers under the cca statute but that aside you would want to anyway there's an economic quirk of cca -- if you follow something like pg&e's rate structure and that is that residential rates are generally fixed year round and commercial rates are seasonal summer and winter and a big difference between summer and winter rates on commercial accounts enough as to you would lose a little bit in the winter and gain quite a bit in the summer so thinking about phasing we began our first phase with mostly commercial customers at the

beginning of the summer added residential at the at the beginning of winter and adding our last phase next summer so it helps us buy contracts and allows us to collateralize . >> every time you invite geof you learn something new which is great. we've been planning to include commercial customers in our community choice program. we recognize that in our first effort where we were

offering a premium product at a higher price, we recognized that that might not be as an attractive an offering to commercial customers so we had asked them to sort of raise their hand and say if they wanted to be included this preopt-out type of thing that mr. syphers described that lancaster is doing we're aware that there are a number of commercial customers in san francisco wanting to demonstrate their social responsibility by having a more socially responsible electrical supply and enrolling them through the opt-out process. >> thank you. commissioner stephenson? >> we talked a lot here about how much you love the outreach team sorry. i'm just wondering

is there in the management of this any role for the department of the environment in regard to outreach in these programs? >> the director raphael and i have been talking about how we can collaborate on the program that's certainly one of the areas we're talking about collaboration we're intending to have a multimedia outreach campaign really about the program so that's i think something that's in our joint futures. >> commissioner king? >> well that's definitely something i would have to see. if we were going to be involved in any kind of way while the puc may set rates and authority over the utility the department of the environment they run the show in terms of the concept of having a sustainability city if we have people that are more

than adept getting out and speaking to people about that i definitely want to see that. i remember -- charging people extra money because the city is hostile towards families and working poor and this is in terms of -- it's a cost of living predator i mean for you know and that's why people were losing middle class and working families leaving here every single day because it just costs too much so for folks not to get the ultimate benefit for this to make sure that not only are they going to get a good price but living wage jobs i'm not going for it period. i would never ever ever ever ever be up here and vote on something where there's a benefit that doesn't get shared in some way some form from the get go or to a level i

can explain to everybody while people were contemplating this there were all kinds of entitlements and what is the level of solar or renewable ity not only from the construction of the building but the maintaining of that building and all of these things and while we just talked about these electric cars you know the very people that need a cost break from gas can't even get them because they can't afford a house most apartment tenants can't afford a house in san francisco so what are we talking about here? i'm going to redo this nice and slow because i'm not voting for anything just because this is

some affluent junkie. >> if i can say one thing -- i was going to say that we've come a long way i mean what we heard here tonight is a lot different than what we heard 2 years ago before director raphael was with us a lot of this stuff that we asked as a commission and individual commissioners and commissioner king has been very consistent on and i aligned myself with a lot of those statements i first learned about cca in cca in late 2007 working with mr. brooks and community advocates and coalition folks around power plant plants and that's the way i heard cca it wasn't cleanpowersf it was just cca and to see how how how far

it's how far it's come is really amazing the work of assistant general manager hale and executive officer fried and ceo syphers it's a whole new conversation hearing it now and story and i think commissioner king on these components he's consistent with what he says and he's going to to to be to be our conscientious and folks in low income communities and think about this program. i'm really excited you know we talked about this as a discussion i do have one question but i'd be really excited to send a message to the puc to agendize for possible action maybe not a full on resolution but you know maybe i want to hear commissioner king's thoughts about this but sending some

kind of message to the to the puc that we're supportive of moving this proposal forward and it's meeting some some of the stuff we initially laid out there that we wanted to see in this program but you know a little bit more discussion perhaps on that and i did have a question if i can ask you ceo syphers i'm a card carrying member of the laborer's union so full disclosure before i ask the question but we talk about cca and clean energy and union living wage jobs i'm going to say it so i'm wondering if this is something that organized labor watches gets involved with is very smart about we had a conversation just two or or 3 weeks ago about the new clean power san francisco at the building trades council for san

francisco where i'm a delegate a few weeks ago and i'm just curious how your conversations have been with say your local building trades council and after after affiliates. are you looking at all of those kinds of things? >> obviously you got to include labor and we engaged the electrical union ibew was involved they were involved in the monthly meetings and we've prioritized good local and union jobs but we haven't set requirements for that our own staff is very small and i think everybody in this room knows but just to clarify the staff of the program can be light we're essentially purchasing power and in our case paying

third parties to administer programs you may administer them yourself and the staff is small we have 9 people today and will grow to 15 or 20 over time but we do sit down with the electrical union and building trades and talk about projects we've signed 70 me megawatts of solar and made that a priority when we don't do union in our local area we're we're doing living wage and that's important to us. we have tried -- this is another area where we try not to have too many ridged rules too early and that's a hard thing to do because there's a lot of pressure from all sides to come to some really specific conclusions right out of the gate but we try to reup that conversation every time a new

issue gets on the table and find our way and one of the things we learned is the local trades in our area were most interested in utility scale j projects and energy efficiency projects they weren't as focussed on residential rooftops or small scale programs even though that's still important for the training programs but met with them and working with them in those areas and got another meeting scheduled next monday and i'd encourage you to do the same and i think you have a history of being more up front and engaged with union activity than sonoma county does early on and so i would embrace that and go forward with it. one good point for people that are concerned it comes up a lot in our call center we get a question how many pg&e jobs are being lost because of your program and the answer is zero.

they have hired a few people because of us but we don't think they are actually losing workers anywhere in the system and that's really important we we can be an additive benefit and sorry to take so much time but one brief last thought -- there's a big challenge in labor with small scale renewables in general. we're transitioning as a society and we're moving toward smaller statistical resources small scale winds and small scale solar and that's a challenge for labor because labor hasn't hasn't traditionally been in those areas so long and don't have as deeper roots in those areas and how do we address

good jobs with good training in the future where there is small distributed resources in a lot more places and i think that's part of our job. >> you know i know director raphael is aware of and i was going to talk about it in my president's report later on but specifically to that point the department of the environment has been leading the way through our refinance sf team with rich chin and gill rodriguez and our energy efficiency work with training there's hundreds of thousands of dollars of training happening to train folks too the smaller work and just tomorrow morning different city departments city officials and even contractors are going to tour that facility tomorrow morning at 9:00 a.m. so no i

think you are right i think that all the parties are starting to look at how to deliver this type of good paying job that lead to careers and retirement and career development to look at how we do that and i think there's still some work to be done but i do know it's critical to members of our local and affiliates. >> commissioner stephenson. >> i was the fortunate recipient of a whole lot of information and direct mailing

etc. e-mails and i think the county did a a brilliant job of communicating about the program and it's no it's no small feat. it's incredibly difficult to explain this so so from a big perspective as they implement this it would be really helpful to borrow your customer research people and copy writer to do a half day of best practices and we don't have to go back and rering that bell and i can't say anymore about how fantastic the the communication and the outreach was. >> director raphael? >> i want to introduce our next

speaker it's going to round out the presentations and we can have more questions and i want to respond to commissioner king 's points. how will the world look different for our energy efficiency programs and the various programs we offer to small business here in san francisco and to the residential sector under a cca scenario and as mr. fried said, getting resources to design those behind the meter programs will be a combination of going directly to the cpuc with a proposal as well as continuing to work with pg&e and as geof said looking at any revenues that might come in from the sale and procurement of power. there are significant opportunities for us to work with low income tenants, with small businesses that are not afforded to us right now with the current pg&e struct