motion passes. >> our next item. >> item 4 community agreeing gas station activities report status on the clean sf program and b the california puc update. >> okay jason fried a lot has happened we have seen the fairness board accept the not to exceed rate urge to see a timeline just yesterday supervisor breed at the board of supervisors along the mayor and supervisor avalos as well introduced the language that was

need to change how our procurement contract work we're excited to see that move forward we need to get that ball rolling in the critical section of timeline it moving f and the main

program objective is to have the program be affordable we're leading that affordability and reliable service we've talked about the fact that the enernex report

that we need to have a competitive program a program that has the renewable attribute the city is striving for to the extent it's afford by your residents the second and third objective go to those points clean energy supply and developing new infrastructure next up i have me milestone and key milestone is the implement schedule we have some accomplishments listed here and some further one that occurred recently i'd like to draw your attention to the update column in the middle you'll see the

activities that happened recently we'll fill in the april 14th date the date that we appeared at our commission to present the guidelines so this is didn't appear on the slide but it will we were successful on april 17th in getting the rate fairness board to agree that not to exceed rates with respect proposing are appropriate. >> so we presented it on april 17th and they agreed and you see that that is the last item that is updated in the date column. >> and that came in a few days early. >> yes. it do we're ahead of schedule thank you for putting that out we are trying. >> i appreciate the work it is very clear that the dates are close to when the proposed dates

are in this case exceeded and we've heard loud and clear and we're going to highlight where we are on target and off so for it's been a mix we missed the legislative reform date but we accelerated the fairness board date overall the important dates that are highlight with the blue arrows are not effected by those advancements and delays. >> commissioner. crews sorry. >> i have a quick question on the timeline that was one line that says mid to late april is that for the back office. >> yes. >> is there a proposed like

hard date for that. >> well, the mid to late april characterization is the timeframe we're drafting the materials we're getting approvals that are necessary before you issue american people rfp and so by late april soon, we'll be able to publish that proposal to solicit the back office we'll need. >> the question was raised to me about when we're approving rates so there is a bite of the apple in the string isn't there for not to exceed rates; is that right i roll call sitting on the timeline we'll have i think may there is not to exceed rate is that still in the worked. >> yes so the first step in setting the not to exceed rate is bringing up them to the rate fairness board for approval and

the next is presenting them to our commission for approvalpublic utilities commission. >> it's not open the slide. >> yeah. i think the summary is in error the summary of our schedule is not clear statuteyly to have them before the board of supervisors at least thirty dates if the board explicit take action that should be a date highlighted and not i think that's what you're referring to that time period. >> yeah. the not to exceed rate the last in 20 what? 2013 or 2012 that was done and public

utilities commission and that went to the full board it wasn't approved. >> in the last round it didn't run the full process because it didn't get the approval of our commission not presented further to the board so the expectation we'll present the not to exceed rates to the commission now thankful been approved to the to the board then moved to the board of supervisors for the thirty day period. >> i saw a 27 date for final rates to be approved is that action that is done similarly or the same action. >> that's not the same action but the rate fairness the puc the process board process will set a cap present final rates to

commission on october 27th will be rate that are below that or we could not e won't take further action since their below that the charter requirements rate has been met we won't have to come back to the board for a second bite. >> the final rates if we don't take action they've set not to exceed rates. >> correct and but we may consider lower than that and done and puc. >> correct. >> and the board. >> the board doesn't see those rates again. >> thank you oh commissioner crews sorry. >> i just have one more question while we're other than the topic of rate is that it said in the paper this morning

there was something coming before 9 state puc to talk about narrow rates so the lower rates could be built higher this is a hold over from the year 2000 when the rates were changed tiering was changed this didn't hurt the household do you anticipate this will impact any way our rate setting. >> the program design because the focus on affordability looks at what the compete rates to the extent pencil is charging their customers for their basic service at a higher level than that had give us more room to have a competitive product some

margin for local build and workplace our basic offering aced jooid. >> it makes us think right now is not cost effective for low energy consumers their rate goes up that changes how we look at the meter work and make that more cost effective all of a sudden to do the work in the low tiered customers the costco come in in a good way there are potential impacts but i agree with the overall assessments of the program. >> yesterday president breed and i co-sponsored a process to enable the puc to go forward

with purchase power purchase agreements later this year and i guess think that is important that we get the ball rolling as quickly as possible i believe that that be h be unconventional perhaps as the thirty day rule to move quickly hopefully the puc is drafting the proposals for the bias is that something that what happen the puc is drafting we're ready to go once the legislation ready to go. >> we've begun you know we've dusted off the work we've done before on drafting the requests for offers and bringing in consulting support that will allow us to have better insight into the process their implemented merry run and others

so we think we're poised to hit the ground running we have had prior conversations with the members of the board of supervisors with supervisor breed in particular about the legislation i think we're geared up and ready to keep going with the pace to make the progress to stay on tackle. >> and is waving the thirty day rules great. >> i'm going to turn now to the perspective proposal is i'm sure you're aware of we currently have requirement to bring to the board of supervisors for approval any yachts exceeding 10 years in duration other than $10 million in total cost we really need to act quickly incorporated to temp of the

administrative common practices within the industry we're looking at forward for the ability to use pro-formula contracts that are used in the industry two of them commonly we have authority to use one of them that authority was dwrantd to the puc quite sometime g ago we're looking to be able to use it standard form contract called the western power systems contract and another contract that has extensive the edison contract we're asking for the authority to use those contract not only for 5 years but up to 10 there will be some waivers of the city contract requirements in that context in order to use it standard form contract we're rehabilitation

asking for the authority to develop our own pro-form contract it have a standard contract in progress we envision seek additional supply and want to that a w a standard set of contracts getting the industry used to hearing from us as and continue to grow this program we're also asking for the ability to contract up to 25 years for renewable and green house regrergs from california sources and in that context we're asking for the ware of some city requirements standard contract terms and we the ability to move forward with those under a delegation of authority from the board where we don't need to come back each time we wish to strike a

contract if it exceeds 10 years or $10 million we're proposing in this legislation to annual report how we're doing how much we've procured so you understand we're exercising the authority we're requesting and we would have the budget issues around the contracts be part of our standard budgeting process we're looking for the authorities not only for the community agreeing gas station program but our existing program. >> obtain the power side. >> yes. >> and i think this is important to note we're not proposing to use those authorizations and those waivers for excuse me for generation we'll deputy on city owned property we envision those in the city process.

>> so what kind of products would be utilizing in granted those authorizes what kind of program design we're proposing to have as the enernex report suggested having two tiered program a default product and premium product the goal to offer supplies that are greener than pg&e and having a low g h g at compatible rates again that meeting with affordability we're proposing a 33 to 50 percent renewable content bundled california eligible resources we'll expect when we go out into the market in the first r0u7b8 the responses will be larger from existing operating

renewables we also expect that as the program matures we'll be able to contract for new you know both owned and purchased renewable generation and this those will be coming online in the years two to three plus timeframe as their developed under the default product that competes with the routine pg&e customer what about our dark green equivalent or our clean start equivalent excuse me. our evergreen sonoma laupgs it is one hundred percent renewable green house free supply we'll

envision the rate and cost to be set to say a margin to fund building new local and regional projects renewable projects at a price eventual to penguin tariff offering targeted to be 3wu7bd in state local rpr compliant resources and really be able to lock to this part of the product offering to where we'll build the revenue stream to build local renewables that doesn't maple we have to wait for 80

that will have purchase electrical in locally constructed renewable contract and have it a standard oh. okay yes i'm going to do this this is the contract i'll sign for it we're envisioning go solar to encourage the customers and issuing rfps for controlled property we envision those as program compliant with annually going out to bid for additional supply so so routine and procured

cycle in order to support the program we also expect to have energy efficiency as part of the program launched they'll be matured as the program engross initially focusing on the energy watch and bay run programs that are offered here in san francisco by the vice president of investment and the other existing repair funded programs programs pg&e is offering to the pg&e customers meanwhile we're developing programs with the department of environment targeted towards the customers that sign up for our

program we saw in sonoma they marketed in the early part of their program an energy program the amount of dollars you seek from the california puc can supportive of those pilot that's an attractive approach for us. >> again, our housing trust fund that was pass by the voter in 2012 has a section of that where funds can be allocated up to $15 million by the year 2018 july first 2018 and some of the funds can be used for energy efficiency in the homes i told the department those funds can be available but has to be concrete created in the mayor's office of housing i know that. >> they're working together. >> so. >> excellent.

>> so moving on the customers who are reproposing to offer this program to we're planning to start small to minimize risks to perform well, that's the same thirty megawatt we're proposing to severing a mix of residential and commercial customers to phase in overtime we want to make sure we don't add load in the next round until we've stable highlighted with our first round and hit a stable point and be able to say all right. let's do our next round of solicitations to increase the supply to increase the number of customers we serve those build

out levels region levels is on market growth and conditions i want to remind you that is a ever present factor for us those are the customers we'll be serving who what sort of rates are we proposing to which are charge we went to the board with the not to exceed our goal is affordability and having a program that is conceive and maximize participation in san francisco we've gone forward with the default product between the current pg&e rates we're proposing to set the not to exceed rate based on the projected pg&e green tariff rate we have our basically r basic product competing with their products and we're also asked

the rate fairness board to provide us with a limited authorization to modify rates we're looking to have the supply prices allowing us to stay within the not to exceed rate and the next step will be to go out to the market your mentioning supervisor avalos to procure supply and see if our expectation is realistic in the marketplace and we'll present what are the final rates that will be charged to customers assuming those rates come in not to exceed below rate. >> i'm assuming the green rate is below or are we doing apples to apples. >> yes. >> great. >> do you want some water. >> yes. please

and respect to the default product the specific rate we're looking at will taking into account the power adjustment and we're estimating it today at approximately 9 point 7 cents a unskilled what the hour for a non-residential consumer when you take that 89 point 7 cents an hour for puc and subcontract out it we're proposing as a result the 8 point 7 cents killing wait to the residents that is participate in our product offering singularly for our product we're looking their green tariff it is $0.02 above

their standard product taking into account the p country i a we arrive others rates 10 point 7 cents per killing wait hours those were the rates we present to the rate fairness board and got the approval for the not to exceed rates so charging those rates for the thirty megawatt program the estimation of the program on the right hand chart of this slide the dark green the top first of all the top slide shows gross receive revenue and the bottom is not necessary revenues for build out and stabilization the horizon access shows you

percentages of participation so it goes from zero percent participation over to thirty percent participation that is representing what is the participation in the light versus the default versus preemptor prominent the yellowish on the screen that default product if you have zero excuse me. zero green participation to the left you'll see all the gross revenues and the all the net revenues cynicism from customers participating in the light green as you move to the right you're seeing more uptake in the premium offering and you see a slight increase in the overall gross revenues they go from $22 million up to $24 million

at a thirty megawatt total when you look at the slide at the bottom you're looking at the net revenues with the zero participation in the premium product that is the extreme left it is difficult to see open this picture it comes out at about $200000 a year in right side collected above our costs as you move out to greater participation in the dark or premium provided offering you see the net revenues available for local build for rate stabilization going up and scenario they cap out about one million dollar that give us a sense of our grow and revenue opportunity the purpose the thirty megawatt initial launch those are don't think the market prices we'll get when we go out

to the market and solicit supply depending on the customer mixtures participation in the program intended to give you a picture of what is possible. >> and with that, i'll be happy to answer any questions you may have. >> so just i guess the big question is what we're seeing in terms of net revenues are revenues we're able to really build off of and grow the program and right. right and it will be a policy choice open the part of the commission as to whether those revenues are spent fully on local build or set some aside to address rate adjustments that might have to happen pg&e rates hemisphere during the course of the year dollars set aside t