>> good afternoon, i would like to call to order the regular meeting of the san francisco public utilities commission. today's date is tuesday september 22, 2015. roll call, please. >> commissioner caen. >> here. >> vice-president vaoet tore, chasing ner courtney, commissioner kwon, mission xher moran, and we have a quorum. er >> before you head the minutes of september 9, 2015, any addition or corrections?

seeing none, is there any public comment on the minutes of september 9th? may i have a motion? >> so moved. >> second. >> all those in favor? >> aye. >> opposed? the motion carries. >> item 4, at this point, we ask for public comment and i do have a speaker card from mr. decosta. >> commissioners, some years ago, when we had as our chair, ambassador richard s c-l aw, a man of great wisdom who understood really what needs to be done in our city and county of san francisco,

so i took upon myself at that time to invite the first people into these chambers to talk to some of you all. maybe one of y'all will remember that occasion. after [inaudible] and he was very happy to meet them. about a little over 250 years ago when jefferson sent lewis and clark here to west coast, we have records for those who can read and for those who have access to the records as to how pristine california was , with this recent drought and with empirical data as

to the particulates and the increase in the depletion of our ozone level, we need to represent the people, and we need to conserve our resources, so we know and i hope we know that for thousands of years, the regional people who lived here who called this place total island preserved the resources. and then in the last 250 years, we created this concrete jungle and we have to live with it. and this commission, the san francisco public utilities commission is duty bound to preserve our resources and

you are uniquely duty bound because you have jurisdiction over large areas where the city of county of san francisco because at one time, we not only had jurisdiction over san francisco but as far as palo alto, and i know some of you commissioners who in their day and age know about this and i hope the other commissioners are given an orientation about it, so in short, we are duty bound to look after our resources. thank you very much. >> thank you. any other speakers today? seeing none, i'll move to item 5, communications. any comments? yes? >> just one comment, i notice in the waste water enterprise capital program quarterly report that the trouble bottom line analysis was

included as promised and i appreciate that, that's helpful and i think that adds to our transparency as far as what our decision-making process is, so thank you. >> yes, vice-president? >> i have a question also on the waste water report and i mean, just to get a better understanding at some point and maybe it's not now an update on where we are financially because i know we have our big cross town tunnel -- no, what's it called? >> central bay side. >> central bay side tunnel, i want to get a better understanding of where that is in the queue and what that conversation lies because i know na's a big financial component and also in the overview of -- i don't know where we are with our entire budget, green infrastructure piece of it and that project are the ones i'm most interested in and a high level conversation as well as like digging deeper on some of those issues. >> so, we can come back and give you an overview, but

just to point out, the 2.7 billion dollars which is phase i, the central bay side construction isn't part of that, and so we are planning to come back once we determine what we would recommend as the size of the tunnel and what type of green infrastructures could accompany the tunnel, so we're going to come up with a combination of green and gray for that process, but we're looking at the whole program and see where we are and come back and let you know where we are from a budget and a skaoejbacker schedule standpoint. >> bh will that be? -- bh will that be? >> sometime in october we'll get an idea of when we'll be ready to have all the information so we can present to the commission. >> that would be great because i know there's been some number that is have

been put out there over the year, 6 billion, 7 billion and sort of we have our 2.7 that's been approved but just to start honing in on what we're talking about and kind of what's been spent, what we have left in the pipeline, what the priorities are that are emerging, all of that. >> yes, and i know there's been a lot of folks talking about where we are in as far as the budget and comparing other projects and other cities of what the cost would be, so we're going to come back and tell you where we are and talk about other similar projects that happen in the nation and so we're going to put that in perspective for you when we come back in october. >> thank you. >> on the same topic, and perhaps today's not the day, maybe at the next meeting, i would like comments on the projects that are running late as noted in the report. and i also had another

question on -- i wanted to ask, how does a bile retention planters work? >> today we're -- [inaudible] of the sources improvement pra*p program, today we have built it along caesar sma vez and we monitored probably out five out of the 15 that were built and they performed well above what we thought in terms of promising and i can get you the exact numbers. we had the san francisco estuary institute assist us with the monitoring and they wrote up a report for us, so we do have that data and i can get that in the correspondence. >> typically in a storm event, the water goes into the bile swell and abing hull keeps it oup of the sewer system, the peak, so the treatment plant has the ability to treat, you know, the storm event, and so --

and hopefully it will detain it and then it will seep into the ground, and so that is sort of the way that they're built, so we measure performance and those events, it's performing well, but one of the things that we are looking into is that the storm events are varying, they're more intense for a shorter period of time and the other thing is it hasn't been a longbacker lot of rain events to measure the performance on a long going effort, so these are some of the channeling but we'll definitely provide that as part of the update of what you get in october. >> okay, thank you. >> let's see, other commission business? next report is the general manager. >> well, the first update i would like to give is our cca update, barbara hill and as

part of that, we're going to have an outreach update on cca a and that's going to be given by tyrone ju. >> good afternoon f, commissioner, barbara hale, assistant manager for power. i'm here to present the beginning of the story we have to tell today. we're going to cover a number of topics. and i think the most exciting part will be what thai presents at the end, the outreach and enrollment portion of our presentation. the -- and to give some context for that, i just want to do a couple of reminders on the

supervisor approval of the contracts that provide supply. it's also assumed that we would perform a risk assessment that was largely at the urging of commissioner moran, and today i have to report that looking at the very good supply options that we've been presented with which i'll dig into a little

bit deeper as this presentation goes on, it's clear to us that some of our supply options that are most cost effective are going to involve us making commitments over the 10 million dollar threshold, so it will require a board of supervisor approval. so, as i've been presenting the schedule, that assumption i think we need to set aside because i think we will need to go to the board of board supervisors of at least some of the supply contracts that we're likely to present to you. in addition, that risk assessment and the rigor we're trying to apply around that risk assessment has really grown from being a risk assessment into a full business plan for the community choice aggregation program, so we are preparing a clean power assessed business plan that will integrate with the business plan that we've already presented to you. we're going to in order to

meet the rigor that i think you're looking for and in light of the fact that we now are -- we now have bond holders and indenture to stay true to, we're going to have that business plan third party reviewed, so that's going to take a little bit more time than we had initially pants panted. we had at the last commission meeting reported we thought we would bring that business plan to you on october 13th, now we're going to work with the general manager and we advise our schedule and come back to you next week with a new schedule. i want to emphasize that what we're talking about here is a matter of weeks, not months, and i want to emphasize that we're committed to swift movement but also to smart movement in implementing our cleanpowersf program, so we think on balance, it's smart for us to come back to you

with a revised schedule. we also recently received more information about pg&e's planned rates for 2016. they are forecasting rate changes that will affect our business analysis and we need to factor that in as well. so, those are some things that have changed since we put together the original schedule and so we'll be coming back to you with a new schedule, i expect the business analysis, the approval of contracts, the setting of rates, those were all activities that we had scheduled for october and early november to shift a matter of weeks. yes, commissioner? >> can i ask you a question about -- so, the business analysis, that's just for cca, that's not -- and the business plan overall that we've been talking about, -- >> i imagine that might impact that as well, and will we be able to see that at

the same time? >> yes, what we're proposing is a business case presentation for the xlaoen power assessed program that factors in and acknowledges some of the same information that we've presented to you for our overall business plan for the power enterprise, with cleanpowersf having been presented in that context as one of the program options, right, and now we're going to dig algt deeper in this business plan into what the financial requirements and the risk profile is of that program within power enterprise. >> because i think they're connected. >> absolutely. >> one of the three goals, their goal of job creation which is what we're really driving towards, we also have some other issues at the puc and the business, you know, in the entity program and hatch -- we're hoping cca can help with, i don't know where we are with our overall business plan but it would be great to at the same time or

one after the other have an understanding of how they are connected. >> well, they are connected in a way that -- well, first of all, there are two separate lines of business and that's the way we're looking at it when we, you know, got -- was able to do the bonding for the capital projects as a separate line of business, so the connection that we made was that we would sell hetchy power possible sales to cca, but we want to make sure that it's affordable, so with we go after these contract and is we're seeing prices that are really affordable, we want to take a look at, well, how much would we be able to sell hetchy power for versus going out in the market and get renewables because we want the head room as large as possible so we can do rate stabilization because i think the number one thing is we got to make sure we keep our

customers and not just go out there and do a build-out, we got to make sure we have investments to keep our customers and then we want to do build-out, so we really got to kind of know and that's why we're taking time to see, one, the rates and get the best rate possible so that we can get the red room, the other thing that we have to look at is pg&e is now decreased their generation cost to their customers so of course we said we're going the match that, so therefore, we have to reduce the cost of our generation which will eat up into our head room as well, and so that's why we're taking a pause because this will impact the business plan and the business plan talks about build-out, it talks about what to mix that we use from hetchy versus these different options that we'll go over later. it will talk about the risk

of financing, you know, what type of rigor we need to do so that we can minimize the risk of financing and getting a bond rating, so all this will be included in the business plan. >> the cca business plan. >> the cca business plan, they're tied together because the power enterprise is tied because it's looking as one of the options of selling the power to cca. >> right. >> it's not cca. >> i understand, and i'm just wondering when that other larger business plan of some of these hetchy issues that we've been struggling with and the fiscal cliff and all of that, when we're going to get that because it seems this is a component of that, that we want to be looking at. >> yes, and i would offer, commissioner, the two workshops we did on the business plan for power enterprise which acknowledged the cleanpowersf program but didn't dive into the financial obligations there

tremendously, this next business plan will, that presentation, those two presentations were -- explained our strategies for moving forward and part of the implementation, and your next opportunity to influence how we go about making those changes within our organization is in our budget. so, the budget workshops will be the next opportunity for you to see, you know, so we had a business plan, how are we moving forward with that, how is that integrating and the point i made about needing to make sure that the cleanpowersf program and as we implement it is staying true to our indenture statements is also part of that because we need to structure -- we need to figure out clearly how we want to best structure cleanpowersf within our budget, so you'll see implementation opportunities and opportunities to influence are going forward

steps there the budget workshops we'll be holding as well. >> okay, i just don't want to be stuck making a budget decision without plenty of advance review of those, it sounds like cca, it's not that far off, but also our general business plan as well and whether they're connected or separate feels like there's implications. >> yes, and we're taking the two workshops that we presented our business plan on, we're turning that into a narrative document, we're trying to make sure it's not so long that no one reads it, but we'll bring that to you once we've had a chance to review it in final form with the general manager, so you'll see that again soon as well. >> the presentation we made was pretty thorough, so if more information is needed, then maybe we should talk about it because what we plan on doing is what we covered is pretty much explained in the business plan. the business plan has a lot of levers that we're

evaluating, i think one of the things that we are making some progress is on the interconnection agreement with pg&e, so i mean, depending on what that outcome, it could trigger a whole bunch of other decisions that we have to make, so you know, so we will hopefully get a document that is thorough enough but not just overwhelming, so that people -- make sure that people are able to read it and digest it. >> that would be great, something that's current with the cca, with the ia, with all the things that have happened. >> thank you. >> sure. >> and so general manager kelly was talking about one of the rel leg laory issues i want to report on, pg&e's forecasted rate for 2016, they filed at the public utilities california commission, what they project to be their rates for 2016, cleanpowersf has said we will have rates comparable for

both our basic and our premium products, rates comparable to what pg&e would otherwise be charging customers, it's affordable, competitive program so, we're tracking very much the changes that pg&e makes to their rates because that's our competitive benchmark, that's a sealing for the rates that we'll be charging our customers. pg&e has made some changes -- that proposed to make some changes that unmet will put downward pressure on the rates we can charge. we're estimating it to be about a 10% rate decrease from what we had talked about as our not to exceed rate, so that as the general manager described really squeezes our margins, make us have to sharpen our pencils a little sharper and do some more of the financial analysis with that information. so, that's moving forward at the california puc, also at

the california puc are pg&e's implementation filings for their green tariff option f, this is the program that will allow pg&e to offer a 100% renewable product to their residential and commercial customers, that's the product that would compete with cleanpowersf's premium product, so in early september, the california puc issued a resolution in draft form for comment as to saying what they thought about what pg&e had asked for, they largely agreed with that but they did put some conditions, some modifications on it. >> on that item on october 1, the resolution adopts many of the changes the city had requested in our our advocacy filings in the puc, in particular, we were looking for more transparency and more abilities for a customer to look at our program and

what we're offering and look at pg&e's program and what they're and be able to compare them readily, so we were happy to see that puc staff is recommending modifications that would require pg&e to include in their bill a separate line for the power -- the pcia, the power cost indifference adjust which is going to be disclose hated cleanpowersf customers receive, really as i say, to facilitate that side by side comparison, so the vote is scheduled for october 1 and pg&e is saying that they're intending to offer that program in early 2016, so that's what they had said before, they haven't gotten more specific, about the same timeframe as us. >> i just want to point out that what we're seeing is that the generation rate they would like to reduce it, at the same time, they want to increase the exiting fee, and

we talked about for us to be competitive, our rates would be lower than the exit fee and their generation, so i think it's making it more challenging for cca's because they're charging the higher exit fee and that's how they're kind of recovering their money and then the generation, they're trying to be more competitive by lowering that, that's something that we're looking at, you know, because it's a strategy i think that they're trying to deploy on cca providers. >> were there any rates given? >> the ak xhul rates were included, yes. >> and what were they? >> i believe it's the 2 cent premium for green tariff, is it a 2 cent premium, 1.5 to 3.5 cents for their green tariff option premium over their existing rates.

>> so, maybe we still feel comfortable moving forward that we can meet, but it will reduce the head room, so we're going to look at what we can do with the reduced head room and kind of look at that, so it's not the end of the world. i think we still can make a really good program, we just need to kind of look at it and see where we are and see what we can do. >> just trying to be thou thoughtful about it, it's a big program. i'm ready to move on to legislative update if folks are ready to go there. so, one of the major pieces of legislation that our sacramento legislators adopted this year was sb350. it's sort of the next step in california's climate change activities. one of the major components

of sb350 is that it will increase the renewable portfolio standard target from 33% of the generation provided to retail customers by 2020 will be renewable, up to 50% by 2030, so we have a new target both in date and volume of renewable content that needs to be provided by load serving entities like our cleanpowersf program. it also doubles the existing energy efficiency requirements from existing buildings. we'll need to meet that 50% for cleanpowersf by 2030. we also worked with other clean power -- sorry, community choice aggregation programs in california to protect against some of the modification that is were proposed in sb350, i'm happy to report that we were

successful in avoiding some additional regulatory layers that the legislature were considering imposing on cca's that would have taken away some of our decision making autonomy and we avoided some efforts to increase our exposure to exit fees and other charges that were being advocated by the investor owned utilities, so we had some successes there, we have some new obligations as well and that legislation is awaiting governor brown's signature at this time. so, now i'm going the move on to our supply efforts. and just as a reminder, the program is providing -- the cleanpowersf prow power is providing two program offerings, our default product offering at 33-5% bundled renewables, and our premium product, the 100% renewable and greenhouse gas free supply option, when we

went out into the marketplace, that's the two offerings we're procuring supply for, when we went out into the marketplace, we requested bids in three different -- under three different options, our firmed and shaped energy, our renewable energy and our resource adequacy capacity, resource adequacy capacity is a requirement for all load serving entities so the iso and the california puc imposed that requirement on folks like us, we face it for our existing program offerings from our hetch hetchy power customers and we face it for cleanpowersf, i'm going to focus on bids we received for option 1 and option 2 mostly. so, on bid option 1, we received 6 bids, i'm very happy to report we're seeing some very attractive pricing, the other terms are still

under evaluation, we have short listed three firms and published that on our website, and we had oral interviews of those three firms just yesterday, so the evaluation team is continuing to perform their work and we expect those three firms to continue to work with us on putting together their portfolios for very competitive priced renewable power. under bid option 2, we received 52 bids, so that's good and that's a high volume and that's great, lots of interest to work with us. it's a lot of work to evaluate all of those distinct bids with their distinct generation profiles, different start dates, how to integrate those, how to value those and integrate them into a portfolio is part of the staff work that's under way at this time, so overall

message there on both bid option 1 and 2 responses is we're happy with the pricing and product offerings we're seeing, so a strong package of options for us that we're evaluating now, and then we received 6 bids also very competitively priced for the resource adequacy capacity that we need to procure. and as we look at those bids, what we're evaluating them for is typical thing, as you would expect, are the bidders qualified and experienced to perform as they say they will, what's the total cost and value of what they're offering to us, how viable are the individual products, so if some of the renewable options that came in under option 2 is forthe city to commit to certain projects that are under various degrees of development, some are already producing electricity, some are going through the permitting process as we speak, so we're looking for project those shorts of projects and

looking at the overall location and when you put them all together, how do they as a package provide for the bids needs of the program, is it the right shape overall of generation to match the shape of our consumption, is it the right price, is it the right business relationship to strike, those are the sortser of issues that we are evaluating on the supply effort at the staff level today. and some of those issues of course factor into our business analysis as well, and our risk assessment analysis as well. so, i'm getting ready to turn the presentation over to tyrone to talk about outreach and enrollment, so if there's any other questions for me, i'm happy to take them at this time. >> thank you. >> thank you very much. take it away, ty. >> you can start talking, i'll do this.

>> if i can get the green -- i thought i might set the mood a little before i begin the presentation by taking you on a little journey of what we're trying to do with our outreach and enrollment. ( playing video ). >> power, it's around us in the sun, the wind, the waves, it's power that can light our homes and energy businesses while protecting our natural resource, cleanpowersf will provide clean renewable power to all san franciscans, how will it work? right now, your power's generated by pg&e from [inaudible] power comes to you over pg&e lines, with cleanpowersf, your energy will be generated by cleaner, more renewable sources, it will come to your home or business over the same pg&e

maintained lines. cleanpowersf, same service, cleaner energy. >> so, that concludes my presentation, so thanks. >> [laughter]. >> you know, this is really excite hating we're at this point where i'm able to present what our outreach and enrollment strategy is going to be for cleanpowersf. it wasn't easy getting here, we had a lot of conversation including the general manager, all the way down, we talk today our sub-committee, our engaged stake hold etcher, our friends at lafco, everyone has an idea of how do you do outreach and best practices for enrollment. what we have today and what i'm going to present to you is an exciting start and it's an exciting beginning of how we will begin to grow excitement around this great program so, with that, let me get started.

i wanted to remind everyone that cleanpowersf is for everyone, it's for you, it's for you, it's for everyone who is a san franciscan in this room and that's what we always have to constantly remind ourself, anyone who wants to be part of cleanpowersf, wherever you are in the city can be part of cleanpowersf, you can be part of that in terms of early enrollment, when you *f you're ready to be a customer, you can sign up even if we haven't reached your area or you can sit back and relax and wait until automatic enrollment comes to your area. we're going to do this by reminding people that they are now going to have a choice, a choice they haven't had in the past, a choice they are going to have through pg&e but a choice of a better product and a better service through our program, through cleanpowersf, and the first one as barbara mentioned our 100% renewable energy product which we're

calling supergreen. so, for premium costs, you get a premium product. we also have our green product, which is going to be the product that we roll out in the automatic enrollment areas but can be early enrolled with anyone who wants to get started with the program, the important thing that separates this program and addresses a lot of the issues that were raised before related to cleanpowersf, we are going to meet or be beat our current pg&e rates and have cleaner energy, that's a powerful statement, even if you didn't read the mailer, at the end of today, you will be receiving greener and cleaner energy than you were previous to being enrolled in cleanpowersf, and we have the other opt out, but i'm not going to focus on that, no one's going to be doing that as we move forward. one of the things and strategies we decided upon was that we wanted to do

things differently to maximize participation in this premium product, this supergreen program, a lot of similar programs like marin, they started the program launch in term of enrollment and asked customers to opt-up, they started, we're going to automatically enroll your area and reach out to you again and opt in for a 100% renewable energy program, we're going to do this a little different, we want to encourage people from the get-go to sign up for the supergreen product, so before we even go to your area for automatic enrollment, we're going to be actively going out and canvassing those areas and say, sign up for a 100% renewable energy product and we think it's going to have market success as we go forward in terms of our adoption rate. and that's what we're trying to do through this outreach program. this curve represents kind

of the standard kind of product launch curve as almost any product you can think of, you can put iphone on top of that and it would be the same product curve sh where in the beginning, you're trying to generate excitement and create a buzz around your program or product, so if you put the iphone at the very beginning, the first people who got the iphone was the apple fanatics, it was still a new technology, and they said, i'm going to get an iphone, i'm not sure it will be a great product, i love apple, i believe in that brand and i'm going to get an iphone, and slowly other people started hearing about the iphone and all the great experiences they were having that the early adopters were having and you start to generate this momentum building up to this curve to successful launches of the iphone 2 to the iphone 3 and to the 4 to where iphone is arguably the most widely adopted, widely recognized and widely held phone in the entire world, and they have

managed to maintain the top of that excitement curve through this time, that's what we're trying to do and replicate through our cleanpowersf program, so we're starting here with citywide early enrollment, it begins today, this conferencing here, this conversation we're going to have with lafco coming on friday, going to our automatic phase of enrollment, building into next year when we start to organize our ground troop, our active stake homed, our supervisors, our commissioners, our lacer afco member and is say you need to reach out to yur friends and your networks to sign up with cleanpowersf, move tog the first phase of automatic enrollment on march 16, or whatever that date is, and this is a critical phase for us where we established this foundation early on, we have people who are enroll ined

the people either through automatic enrollment or through that early adoption and now we need to kind of build upon that wave and we have this tight timeframe to do this and this is where we're going to punch in and we're going to say, okay, let's broaden this reach even further through a citywide outreach and advertising campaign which would augment those grass roots effort that are starting and begin to climb that curve of excitement, leading into our next phase and service cut over later in fall of 2016. so, for our phase i city wide enrollment and automatic enrollment, bargaining citywide, you are in the marina, richmond district, anywhere around the city, you want to be enrolled in cleanpowersf, we're going to prioritize your enrollment first, after that's done, the area we've chosen to select is the southeast part of the city for our first phase of enrollment.

why did we choose to start auto enrollment in the southeast? two reasons. we have the potrero power plant and the hunter's point power plant. when we look at this area, nr's only one neighborhood in the entire city that has had a history of polluting power plants in their backyard and that is here in the southeast part of the city, and so what better way to start this statement of this program and what this program is all about which is bringing clean, affordable energy to anyone regardless of socio-economic status, regardless of what environmental justices you have faced, this is a prime ground for us to make a big, bold statement about why we choose and why people should choose cleanpowersf and why we feel strongly about clean energy here in san francisco, and the puc was active in helping close these two

power plants down but we need to take the next step forward in bringing clean energy to an entire community and neighborhood, but these two reasons aren't the only reasons we decided to start with automatic enrollment here in the southeast, there were a couple of others and we heard from a lot of different people, a couple of people in particular, about concerns about why we would choose the southeast and we think those two reasons i mentioned earlier on top of these other ones still make a strong case and a strong argument for why this is a great place to start. one, in identifying the customer load mix, this area happened to have a great customer load mix, it also provided a concentrated geographical area for us to target our outreach, especially at a time during the super bowl when things are expensive, it gave us a way to leverage our limited resources and get the biggest bang for our buck in terms of making sure everyone in the area knows about our program and also it allows us to

leverage all of these great relationship that is we have consistently building with our waste water treatment plant being out there, with our community benefits program, with all of our work with the southeast community facility, we're leveraging all of those facilities to help us to carry us over the finish line for the launch. some of the specific strategies that are mentioned here, we have some opt-out mailers which are -- >> you also want to mention affordability. >> oh, yes, i'm sorry. of course, as we said, leading with affordability, with that green product, we are offering, again, a greener product for the same or less than what you are currently getting from pg&e's basic service, so we are from day 1, even if no one went with our supergreen product, that entire community would be receiving greener energy from day 1 once we begin

that cut over period and they wouldn't have to be paying more for it. thank you for reminding me, harlan, so specifically the particular outreach study we're going to use, we have direct mail and targeted outreach within that community, door to door canvassing, we're going to be having our citywide enrollment strategies building into next year with those stakeholder engagements and organizing different contests around different neighborhoods for people to sign up for that supergreen product and it's about creating that buzz, climbing that curve to build that excitement about cleanpowersf. for phase ii, again with that critical piece of being able to ramp up our excitement about a program, we're moving over to the center of san francisco, and, again, still doing our citywide enrollment, still doing all of the outreach, every neighborhood across the city, but now focusing on the automatic enrollment in that central part, the two

reasons we then decided to move over for the second face over to the center of sf, where, one, we believe it's going to be fertile ground, we believe we're going the make a big splash with supergreen in this area, our poll shows there's high propensity of people within these geographical area that want to 100% want to have renewable energy, and this is better than what we were offering before, so we should see a pretty big uptake out there, and building upon that success of timing and phase i launch. this is a budget that we have for phase i and ii, it's a significant amount of resources invested into the first two phases for ant 50 megawatts, so we think that is a prudent investment, that beginning is so important, you either start the program out strong and build upon that foundation to keep going to further heights or you putter out, and we're not

going to do that here with cleanpowersf and this is an outline of how much it's going to cost just to do the outreach and enrollment with those first two phases. so, the last couple of slides are related to targets, metrics, what are we trying to shoot for through these first two phases, so we've done a lot of research, in addition to a lot of discussions and back and forth discussions internally, we looked at what other utilities have done around the nation, as well as what our neighboring cca's have done in marin and sonoma to look at what their participation rates are for their green renewable energy programs and the one thing i want today caveat, the percentages are there but all these programs have different pricing to them and different attributes but it gives you a snapshot into what it is, so we have portland, 14.4% residential, going on down to the communities choice aggregation products in

marin and sonoma where they've had a 2-3% adoption of their premium product in marin, and a 0.5% adoption within sonoma, and so i just want to also caveat with sonoma, they haven't do* begun that second phase of that outreach, they wanted to automatically enroll everyone in and then get everyone to opt-up, that could be one driver for why they haven't hit those high marks yet, but it gives us some idea what to shoot for with our own goal and is then what are our friends in the utility owned utilities doing, and what do they propose and their participation rate, we have southern california edison program, 0.5%, these are numbers they submitted to the puc about what their participation rate would be, san diego gas and lektd rick, less than 0.5% sx, we have

pg&e's own program, they're ants paying 0.22% of people willing to opt in to their premium green product. what do we want to set for our goal? we always like stretch goals because it gives us something to strive for websinger always say we can do better and i believe we can do better in san francisco in terms of setting a target that's both realistic but also gives us a stretch goal for what we want to accomplish, and so our goal that we've out lao*iped here for the end of phase ii is an opt out rate of less than 20% and supergreen to make up 5% of all of the enrolled accounts, and we believe these are reasonable goals to start off with, it doesn't mean we're going the shoot for 5% or that 30%, we're going to be satisfied at 20% opt out, we're going to try to surpass and exceed all of these goals that we set for ourselves and with that, that will pretty much conclude my presentation, hopefully you are excited. i will leave you one lasting

image, you can go back to the slide, that's me. that's going to be everyone because we want every single person in this room to be a superhero, just champion supergreen at home, no matter what you do at work, you can be a supergreen superhero at home, and with that, i'll take any questions. >> i'm sure -- >> i think first of all in that graphic of you, you should be drinking a supergreen drink rather than a brown drink? >> the only direction i gave to the graphics team, i said, can you do a cartoon illustration of me for this, i want to create a superhero montage and he put the mug there, anyone who sees me in the building knows that i walk around with a brown star bucks coffee mug wherever i go, that's what they put in my hand. >> you need a green mug. >> it might be a rose [inaudible] for you.

>> thank you, tyrone, i appreciate that. >> so, the supergreen sign-up, i just had a thought, is there a strategy around kind of seeing if there's any high profile people, whether they're elected or whether they're celebrities who live in san francisco, whoever those are, chris isaac? danny glover, does he still live here? >> i think he does. >> but they might be interested in signing up ahead of time and could then sort of help advertise because i think we really want to pull out all the stops and -- >> absolutely. >> the mayor. >> that's just an illustration of me, like i said, there's an illustration for every single one of you coming as well as the mayor and every one of our supervisor and is the idea for the animation, the superhero idea came from our supervisor. >> oh, great. >> and then i had a question, just one more question too, and thank you by the way for

the presentation, i think it's great, it's very exciting that we're at this point and i love all the graphics and the visuals because i think it's going the help. maybe barb said this and she buried the lead, the march, 2016 launch of the program, is that what i heard? because i just would wabt want to make sure with whatever p fw, and e is doing with their green tariff program, whether they launch or not rkts i don't know whether or not that's an issue from a communications perspective, i would think that maybe from an uptake, that would be an issue and if indeed it might be, i would just urge that we try and accelerate again that launch date so that we don't, you know, -- so that we can get ahead of that. >> we're moving as soon as possible, but, you know, we have to make sure that we get a good plan because my whole thing is you plan, you work, you would've, you plan, if you have a faulty plan,

you're working through -- you're working a faulty plan, so we want to make sure we plan it right, that's why we're taking a little more time to make sure everything is done correctly. we are trying to move as quickly as possible, and so like we say, we're talking about weeks, not months to get our act together. i don't know when pg&e is slated to move forward on theirs, but we're going to start advertising or at least we start doing the launch, but it starts before then,

the opt out notices need to be finalized by november to make sure it hits the mail. irrelevant's not going to have an overall effect of the success of what we think we can be with phase i >> >> as long as that outreach happens before pg&e's projected, you know -- >> we're already beginning to engage with all of the folks to the southeast, to help enroll people and get the word out, so those conversations have begun a few weeks ago. >> great, thank you. >> first, your mug might be okay because isn't brown the new green? but i want to applaud you, this is a great presentation. i think the symbolism of starting in the bayview air xwra and we're in district 10 i think is important and i hope the residents of that neighborhood also feel that way equally. i think the deadline of being moved back, i understand it makes sense, i know that all eyes are on us to make sure

that it goes forward, but i like the message and the plan, i think it makes a lot of sense and the last thing i will say since the cubs are headed towards the playoffs, this is the year it will happen. >> we will not illustrate a cub uniform on you. >> i do have a celebrity i can present. >> a couple of questions. on the phase i, when you do the first citywide preenrollment, is that going to be for residential and commercial at the same time? >> yes, it's basically for anyone residential or commercial that wants to sign up for the program. >> okay. when you then get into the official roll-out with the opt-out provisions and all that, how does that work? when you have preenrolled,

do we still have to send out opt-out notices to those same customers? >> yes, you do need to send out opt-out notices, something that's been helpful in lancaster, they've had a waiver box so that instead of receiving the two required prior opt-out notices, you can just get the two opt-out notices from when service starts so i think's a strategy we're going to use for those early enrollees. >> it can be confusing if you get opt-out stuff before you enrolled and what does this mean and why and we need to manage that as best we can. and is the product we're selling basically focused on green content and price, and i'm thinking in addition to that, other service offerings such as go solar options, so

far, we haven't tied those to, you know, cca customers, but we could. and we've talked about that somewhat. you know, what is is current status of that, what's our thinking on it? >> so, you know, i think the number one thing that we're looking at with the head room is to look at a go solar program that's actually funded by the cca head room because it needs to come from that, also with the go solar, we'll make that available and as we go through the city and automatically enroll folks, the good thing about the go solar, what we've done in the past, hopefully they'll become our customer so we've made an investment, we still have the credits from those installations, so it opens up a new way of the concern that we have invested in pg&e

customers, now they become our customers, so it kind of works out. >> and i guess i would encourage us to make that connection as explicit as early as we can and -- because i expect that pg&e is not going to be silent during this period and that they're going to raise issues that we haven't thought about, trying to make it look like less than it is. the more we can have bundled into that, by virtue of being our cca customer, you have access to a go solar program which you would not have otherwise, that would be a nice bundling to have for it. >> and that's another thing that's not illustrated here is the customer care part of it after you're enroll ed, we want to make sure you're happy with our services, we want to make sure you're

aware of all the services we offer to you as a customer of cleanpowersf. >> do we have a listing of the power customer care programs that we have and we can look at it and say, if you sign up for cca, are you getting the same or better? i've spent some time roaming around the pg&e website, not so much ton residential but on the commercial side, they have all kinds of programs. and i think it would be important to be able to say that for some of those, you're probably still eligible for those programs, in those cases where you're not, either we do or don't provide them, i think that would be an important part of our roll-out as well. >> we definitely do not. >> which also got me thinking about their website, it's a pretty slick website and it has features in there like you can go in and they will

compare for you your monthly bill under different rate plans. i don't expect that they will include cca as one of those, but it does raise the issue of what access we have to the customer data and what we can do on our own website that parallels that or provides the same kind of information to customer service. we should be able to compare our rates to their rates. >> yeah, and that will be one of the things that we build out as we finalize what the rate is going to be, that kind of comparison. >> and it should be on an account by account basis, given the amount of power that you use, given the pattern you use it in, if you have their three available rates, wla's the monthly estimated bill, if you have our supergreen, what are the estimated monthly bills on that, but that's something that -- i don't know if it

makes sense to integrate or if it's possible to integrate with their website, but we need to have something comparable there. so, that people get the same level of service, it also goes with customer notices and news letters, they have news letters that come out talking about water conservation, makes them look pretty socially responsible. we need to have programs that do the same thing or a link that if you're part of the puc family, here's the various things that you get, i think there's a lot of opportunities there. >> i think the biggest challenge is that as we talked about is each one of these accounts are still a pg&e customer, they get the bill from pg&e and we have a little line on their bill, so i don't know if they will be too receptive of putting our literature in their bill about that and maybe we can ask about it, but the other thing is