i'm sure we'll make it through it is a loss and one we'll appropriate mourn for awhile thank you for what you've done and given us thank you. >> mill will you come up here we would like to take a picture with you. >> you left your wardrobe (laughter). >> so here we are.

(clapping.) >> does that conclude your report. >> it concludes my report i

don't know if you have to ask for public comment. >> i'm going to ask for public comment. >> i have an arrow here any public comment? yes mr. brooks >> good afternoon, commissioners first, i feel i must join in the kudos for mr. cruz i started working on city hall issues in 2002 i remember in the bad old days a lot of colleagues on the social justice uses to talk about the local hiring and local job development and since a gm cruz started since mr. cruz has been in his position there's been a noticeable and marked difference in the job development and local

hire that's extremely important to recognize what the other item the drought some ideas on the drought come up in your previous meeting i want to make sure and reiterate sorry i'm eric brooks with san francisco green party this is the chairman that coordinates the same commission in 2011 when we didn't have a drought that strongly opted even a mirror appropriation and involvement in the burr regional deceleration plan project we have not changed our position on deslaths and the project the reason we've not done so as always all the groups that can. to you maintained the

desalvation and the emissions that came from that and the environmental impacts and the impacts on the water treatment system you have to might have to put to the ground treatment for all those reasons desalvation remains the absolute last report all the things like much more aggressive conservatism and rain barrels the com posting toilets if we did a massive shift we'd save million dollars of gallons this is the kind of things we need to do the point is desalvation is the last on the list because it, it's a huge e minority of green house gas and even if only on solar panels

they could be used to replace fossil fuel somewhere else to please leave the bay area desalvation project and other desalvation projects at the absolute bottom of the list thank you. >> any other comments that is seeing none, the next item. >> a cc update. >> as barbara hill comes up i want to say a couple of things you'll hear a couple of themes one is it needs to be affordable we have very focused on affordability program a making sure that everyone can afford the power we're providing and when we perspire power on the open market we want to purchase

it in california like commissioner courtney said it creates jobs in california they stay in california we're working on that there is legislation we'll proposed to streamline the process and then two product options you talk about light and dark green but two product options as we go forward how we mark those product options i am sorry to ms. hail and she'll continue with the presentation. >> thank you barbara hail for power i'll be coming up to make an update today's update is a little bit longer than than most we're present the policy program design for the program other of the updates i expect will be part of general manager report so looking at 9 slides you'll

see we have an agenda of items to go through and the emphasis being what our program design is with the policies we're operating the program and intending to operate the program under and the projected target rietsdz look like as mr. carolyn said this is a program that will lead with affordability we really wanted to make sure that the program is assessable affordable to as many san franciscans as possible and low provide the energy security and this restricted for san francisco that the policymakers when we asked us to garbage embark two other goal objectives and those are developing a

cleaner energy supply so for san francisco and the local jobs that come with that infrastructure at each of the meetings i'll be bringing the implementation schedule at our last meeting - forward you see a change in the form an update column worry highlighting here the milestones and noting the decision points with the black and blue blue arrows on the left we'll be seeing decisions from the board or yourselves to advance this program to launch in early 2016 so for by way of noting changes from the last presentation you'll see we have held the first of what we hope to be many stakeholder meetings that was held on april 8th

we presented larger the same material i'm present today to get feedback from the community members, from renewal vendors we had representatives from the storage industry a bought of folks that have an interest in seeing cc organization succeed here 40 in san francisco we've also noted the development of the proposed procurement legislation that was sent over to city attorney on march 23rd and we are 25rg9 april 21st for the introduction this is the item that flipped we talked about this slip at the last commission meet we were 25rg9 march 31st it is more complicated so we're targeting the 21st for legislation

supervisor breed as other members talked about the waiver of the thirty days could be constituent as introduced on the table as possible regardless of that we still expect to with that flip age stay on schedule for the launch of the program in 2016 then the next just want april 14th today that is where we're presenting our program design to you and finally on friday of week we'll be school board for the fairness board to ask them for the target rates for the launch of the program. >> so i'd like to now dive into what the proposed legislative

proposal is by the way of background you know the board of supervisors currently has rules that require the puc to bring any contract that exceed 10 years in duration or or a $10 million in total costs for approval we have historically received deliberations of that limit contracting for energy applies that happened in the 1990s with the board adapted an ordinance that allows the puc to use one of the standards form contracts it is referred to as the western systems power contract to purchase from the power market and sell to the power market for durations up to one year that

authority was extended to duration up to 5 years what we're seeking in the new legislative reform is authority to use that same feed of contract for up to 20 years we're also asking for up to 10 years for standard products in the market for purposes using not only the western standard form contract but also the he had son electric form contract over the years the additional form contracts are used rigorously in the market we're seung that authority for longer direct your attention and more than one standard form contract with those proposals we'll not be seeking to apply those new terms to projects that are

developed on city owned property we expect to the extent for example, solar on the revolver of university mound or solar other city property we expect the city provisions contracts to apply we are targeting as i said the introduction of the legislation for april 21st next tuesday. >> i'll be happy to answer any questions i'm pausing that another point to see if you have questions i'm going to move on to the actual product improvements are. >> i have a question the electric industry standard contract would that be to purchase dirty power too. >> what we're proposing that's a good question for durations up to 10 years let me back up we currently have durations up to 5

years we're asking for that to be extended for a total of 10 for any type of power products we need we are also asking for delegated authority to contract for 20-year terms and that setting only for renewable and green house gas emission. >> why an expedition. >> not only for the non renewal or green house products but you're absolutely right we'll be able to make those purposes we are going to need to firm and shape the power we purchase and so we're going to need to have the flexibility to purchase non- non-weather did not eights non-you know non-renewal. >> that's part of reality.

>> system power it also the other aspect of that is you know as california's policy is rachel up on the renewables there are now higher renewable content in the power purchase not everything that is contracting for power when their contracting for renewables are using all the electricity all the time so some of the electrical power, if you will spills into the general system market if you look at the california power what's in the system power were anticipating a increase over time and the renewable contract in the system power purpose. >> it will be getting confusing what kind of a power your buying. >> they don't specify the unit

they're coming from. >> right. >> >> can't claim it's renewable but the california energy commission tracks the consent of even system power purposes you're seeing the purposes are getting greener over time any other questions on the legislature reform. >> thank you for the update and thank you. the r5e89s of implementation cause in between those points but as long as the key milestones are met or slippage in the times i want to thank you for that. >> thank you so moving to the target product offer as mr. carolyn alluded to we'll have two product oefgsz a default of basic priority

offering a a premium product offering for the basic default prominent psz the product that quotes where pg&e product that is available to san francisco businesses and resident we're going to offer a supply that is greener than pg&e at a compatible price we are toorlth 32 to 50 percent 3wu78d you know california renewable portfolio standard power we're expecting during the initial period of the program our power will primarily be too renewable resources that are already selling power into the grid we hope that over time we will

be able to contract for new you know either owned or purchased renewable generation that will come into market we're bringing new demands to the market our premium product the product that customers can say i want to be in your program and opt up to a greener product we're proposing to offer one hundred percent green house gas supply and use the revenues to help our local build power contents of the target we're 25rg9 at the beginning of the program will again be bundled in state rp s eligible resources so the power content here about not include your

honor, bundled renewable energy perks once it is launched we're able to build new resources to serve the premium product in the end so meantime awhile we're developing the revenue stream and the track record to incorporate local and renewable; correct construction we're developing programs that induce the local construction of renewables and see at launch we will have a night energy program we'll have those present to encourage new san francisco solar customers to participate in our cca program we're developing a feed in terrace program that is where we'll have local

generation under contract to us given those legislative reformed i've talked about under contract to sell the out put of the system and and use go solar and use those on city owned properties as we develop the financial track record our overall we expect to have an annual procurement process where we'll have the standardized procurement that marketplace will get use to us purposing for renewable electrical they'll accept that that will encourage further development responsive to our

customers needs we'll also be providing energy efficiency in our response program relying on existing programs the energy watch and bay render that the department uses and the funded programs through pg&e we intended to begin working closely with the department of investment to develop pilot energy efficiency and programs to evaluate those pilots for continuing funding through the ratepayer fund that the california commission offenders and make choices like ours offers we're proposing to provide services to san francisco customers and businesses in this early period so it had been a mix of retain

and commercial customers we're starting the program with thirty megawatts that is thirty megawatts of average 40 megawatts peak the idea to start small and work out the kingdz and minimize our risk at the early launch period we'll phase in load unanimously as i mentioned in conjunction with the annual supply procurement process and our build out levels will be extinct on the market conditions that's who we're serve let's talk about who we're targeting at the rates if you're ready to move on so again leading with affordability and maximizing participation in the program we're proposing to go to the rated fairness board on friday

with rates for our default product that are based on on the current pg&e rates for their products and proposing to set premium rates this is the premium product rates based on what they are projecting pg&e's green tariff opposite p will be priced at and going forward our recites will cover our costs our program costs and we'll be seeking limit option from the fairness board to modify the rates much like we have with our 5 year rate plan for the water and wastewater and our rates for the municipal power rate we have flexibility over a nuke of years to modify the rate without going back to the fairness recite board we're proposing that for the cca program the supply prices allow us to stay within

the raised not to exceed rates the target rates our next step to bring the supply contract forward for our approval and present the final rates to the board if the rates stays within the affordability metrics with the pg&e rates for the pg&e offering. >> i have a question in terms of rates we have a desire to bait pg&e of it's by a penny. >> we have that desire and the proof it in the pudding when we see the requests for the proposals and if we have the ability to have the rates below you know not just above the noifd by below the penguin rates we'll present that. >> i know there's a lot of moving parts to this and make

that better because - >> yes, thank you. >> part of the sha bank. >> the repair sha bank. >> so i sort of reviewed the overall objectives how the math workouts a rate of 6 point 8 cents and the premium product 10 point 7 cents for a kilowatt, however, 10 point 7 cents for a renewable product we are factoring in as we look at those rates fish taco in the rate that pg&e will past the power charge and adjustment fee into their customers we're assuming we will eat that in order to meet that affordability to meet that target price and so we're going

to need to be that much better anothers penguin as procuring resources for the customer base and so at those rates given the megawatt size what's that what are we expect to see overall we're expect for a thirty megawatt program at the supply prices we are projecting a at the rate we're projecting a revenue stream over the course of a year $23 million for the thirty megawatt size as we look at the split between uptake between the default and premium product at the top the split between you know if we

have zero participation at the extreme left zero participation in the premium product all the revenue is associated with that sale of that default product around $23 million if as we slide to the right on the top chart greater participation in the premium product that means greater participation at the higher price as you can see the overall grow revenues climb up a bit when you take those gross revenues and look at it what they are on net this is what you're seeing on the bottom slide you're seeing at zero participation in the premium product full participation only in our standard product about $200,000 a year of net revenues we'll be able to invest in local

construction or in rate stabilization efforts or other you know policy objectives but as the participation in the green product the darker green product grows the net revenues grow that is close to the one million dollars a with thirty megawatts of sales we expect the program to grow so that thirty megawatts to grow over to serving all available san francisco residential and commercial load so what do you mean right now pg&e serves 8 hundred megawatts in san francisco and we serve thirty with our municipal program so you imagine that thirty megawatts growing it could be quite a large opportunity to implement the

policy goals and objectives that have been articulated imply the city for the last ten years in trying to launch this program starting small allows us to get our house in order and make sure we have the program any of or administrative program and begin to add load could we add load more quickly than an, an annual basis potentially but i want to make sure that the program stable lids at each incorporation of new load before we add more so the thirty megawatts will be given to communicate the opt out opportunities to the thirty meg wallets of load at the end of this calendaring year into the spring of 2016 they will still have opportunity to opt out of

the program we want that thirty megawatts to hit a steady stage before we add nor load to the program it could be a 8 hundred megawatt program i'll be happy to answer any questions you may have. >> thank you i know that a lot of hard work has gone into this i have a couple of questions first on the numbers. >> yes. >> so that the 50 percent i guess the third observation from the 50 percent number it seem like there a availability in the renewable in the priority if we are that going out today to purchase is it might be more expensive than in 6 months that's an opportunity at some point to make a decision w