cisco public utilities commission is called to order. this is the last of the meetings as of the last and continuation of the of the budget hearing. so can we have a roll call please? president paulson here, vice president rivera here, commissioner jeremy, here. commissioner. maxwell. commissioner stacy, here. you have a quorum. all present. okay so i'd like to announce that the san francisco public utilities commission acknowledges that it owns and are stewards of the unceded lands located within the ethnohistoric territory of the muwekma ohlone tribe and other familiar descendants of the historically federally recognized mission san jose verona band of alameda county. the sfpuc also recognizes that every citizen residing within the greater bay area has and continues to benefit from the

use and occupation of the muwekma ohlone tribe's aboriginal lands since before and after the san francisco public utilities commission's founding in 1932, it is vitally important that we not only recognize the history of the tribal lands on which we reside but also we acknowledge and honor the fact that the ohlone people have established a working partnership with the sfpuc and are productive and flourishing members within the many great area san francisco bay area communities today. so let's call the first item number three, which is a summary of the budget hearings. and if there are any questions, donna, can you read it officially? yes item number three is a summary of budget hearing questions. okay. madam secretary, um, there was one question that came up, uh last week. uh last meeting from um, commissioner maxwell that i wanted to address, and it had to deal with the issue of, um, contracting out and correlation

of, um, uh, staff vacancies. um i just want to make clear that there is no correlation between contracting out and staff vacancies. consultants are not replacing silver service staff, but are at most augmenting puc staff and only for specific approved reasons to receive an exception to the general rule that services are to be provided by employees. there are specific specific criteria that are applied. a documented procedure notice to our labor partners, and oversight by the city's civil service commission. anyone looking to contract work out must answer whether civil service classes can perform the work. reasons to allow generally fall into three categories. number one, immediate needs and emergencies. to address unanticipated or transitional situations or emergency situations. two the short terme or capital projects for projects requiring diverse skills expertise or knowledge and three as needed intermittent or

periodic services when services are required sporadically or during peaks and workload, with the exception of infrastructure which, due to the nature of its work uses many professional services contracts. the amount of contracts in the agency is very small looking at the ratio of professional services consultants to puc staff, it is about 13% for the water enterprise, is 7% for wastewater and 9% for power infrastructure has a clear process to work through um contracting needs to ensure that the sfpuc gets the expertise it needs to deliver on its projects, but still ensures city workers perform as much work as possible. all of those only a very small fraction of these are actually doing work that city staff could do, but we contract out due to vacancies for wastewater. it's nine staff five of which are in the collections systems division and four are in the planning and regulatory compliance division for power. it's for staff, which

forms a high voltage crew, not a professional services contract. and for water, it's 34, six of which are at uh city distribution division and 28 are at hetch hetchy water and power. bottom line, there is a process very well defined and public with notice to our labor partners. and our numbers show that is used very sparingly. the contract, the contract form is posted for all union classifications related to the scope of work and unions have an opportunity to review and object to the posted form. so i know that we have uh, wendy macy, our chief people officer, here, to answer any questions, but i wanted to make sure that we answered that question about correlation up front so that we could ensure that, um, you were confident that most of the work being done here is being done by our city staff. thank you, mr. herrera, for that clarification and for the fast answer. and uh, commissioner maxwell comment, i know that you had

initiated that, uh, question. yes. thank you. and i'm glad to hear it. and i am also and again, thank you for responding so quickly. i know that, uh, as i was coming up here today, it's clear that uh, the entire city coalition from all departments, you know, all city employees are in bargaining right now as we speak. and i know that the issue is is that people are, uh, very always very nervous that, you know, you know, with layoffs and budget crunches that people are going to get squeezed out. and it's glad to be reminded that this city does have a policy about contract out that's very specific in which city workers are prior ties. so thanks for that timely reminder. any other comments or questions regarding the past meeting? seeing none. um, let's read the official item number three, please. um, actually, we need public comment on this item. oh yes. um, so

let's open this up to public comment. three members of the public present to provide comment on item number three. see none seeing none, and obviously none online. so, um, let us go to the next item please. item four power enterprise and clean power sf fiscal year 24 to 25 and 2526. operating and capital budgets and ten year capital plan and we have, uh, welcome, miss hale. thank you. barbara. sorry there you go. sorry. thank you. barbara hale, assistant general manager for power. thank you for holding on all the way to your fourth budget workshop. here we are to talk about power. so, uh today i'll provide an introduction for some context provide a brief reminder of our levels of service, which you

adopted in just in november of 2023. and. and those really, you know, ground our work and then get into our budget requests and how they help us meet our levels of service and priorities is let me begin with how power enterprise is organized to do our work. the power team is divided into four organizational groups, each led by a deputy manager. they are here today to hear your guidance and feedback and assist with any questions i have. so please allow me to introduce each of them. moving from, uh left to right on the org chart that you see here, we have our operations deputy manager position, which is vacant due to a retirement. so our next level of leadership is here is, uh, i'm going to ask each member to stand to be acknowledged. rich stevens is managing our power utility field services team. um, sunita jones is leading our wholesale and retail services team. and matt

ho, who leads our distribution engineering efforts. and then we have catherine spaulding, who manages our programs and planning work. mike himes, who manages our clean power, sf and power resource work. and pamela husing, who manages our interactions with pge on the wholesale distribution tariff litigation and settlement efforts and who manages our federal acquisition project. so you see the functions in the staff each oversees here on the on the org chart. um i just want to take an opportunity to publicly acknowledge the great work that these folks do. um you often see me, right? it's these people, right? and the teams that they lead that are really doing the work and to serve san franciscan, um residents, businesses and local public services with our clean affordable and reliable power. so i just want to take a minute

to say thank you to them. thank you. thanks yes. uh, this staff that you see on the org chart here, they they apply their skills to both of our, our retail electric service programs . right. our hetch-hetchy power program and our clean power sf program. and they charge their time accordingly. so for example, we have we have to perform demand forecasting activities. the demand forecasting staff report up to sunni. they forecast the hetchy load and they forecast the clean power sf load losing using the same tools and resources. so we share skills and resources and make sure the benefiting ratepayer is charged for the work. this attention ensures fair cost allocation and supports our cost base rate making for each of the programs. so now let's do a quick review of the programs themselves vs power enterprise operates these

two retail electric programs and operates and maintains our street and pedestrian lighting systems. so hetchy power is san francisco's publicly owned retail electric utility. the clean power sf san francisco's community choice aggregation option. power serves. about 386,000 retail accounts. 75% of the electricity that's consumed in san francisco is produced by our team. each program has its own operating and capital budgets, with street lighting included in the hetchy program. different program budgets are due to the fact that we have distinct ratepayers in each of the programs. the hetchy customer base is dominated by city and county services. is san francisco's muni system. sfo the general hospital, city hall police and fire stations libraries, our own water and wastewater enterprise resources and a growing number of businesses and residents. through our redevelopment

efforts like the transbay terminal, the hunters point shipyard, pier 70, and the redeveloped portions of treasure and yerba buena island as they make up the 6300 hetchy customer accounts. you see on the slide here. clean power sf customers include resident like yourselves, your neighbors, your neighborhood businesses, us and larger commercial customers like salesforce tower. they make up excuse me, the 380,000 plus clean power sf customer accounts , the hetchy program, budget is about 220 million, and the clean power sf budget totals about 370 million this year. all of our customers benefit from local accountability and response. liveness cleaner non nuclear supplies a dedicated, local represented workforce and more affordable and stable rates. had she power service to the city and county of san francisco

customer departments. lowers the cost of city services, we project more than $50 million in savings to the general fund departments. just this fiscal year 50 million for enterprise customers like water port at the airport and our hetchy commercial and residential customers. we project more than 70 million in savings on their power bills this fiscal year and that doesn't include the rate increase that pg and e is anticipated to implement in march. so when i'm talking about these savings, i'm saying relative to who else could be providing them service. and that's pg and e 120 million has been saved in one year by having hetchy power service available here in san francisco in calendar year 2023. so that was hetchy and calendar year 2023. clean power sf service to residents and customers. uh customer businesses saved san franciscans more than $50

million. more affordable rates means our customers have dollars in their pockets to spend on their needs and desires. so with that context let's now discuss how much revenue we're talking about, right? how much are we taking in and how are we spending it? uh, remember commissioners, you heard from agm of business services and cso, cfo nancy hom and our deputy cfo and budget director laura bush, that we have a total proposed operating budget for the puc of $2 billion in the first year of the budget and 2.1 in the second. from these revenue totals, powers ratepayers are funding 623 million and 658 million for the two budget years. that's, um the up country, uh, expenditures that our ratepayers fund. that's s the expenditures here in san francisco and through our hetchy program that our ratepayers fund

and the clean power sf program that amounts to about 31% share of the agency total budget. the difference between the revenue totals you see here and the budget proposals are the contributions to meeting our reserves and fund balance. so while we collect 728 million from our power ratepayers in fiscal year 25 we're only proposing to spend 623 million right? the rest stays in the bank. now let's talk about how we'll spend those revenues. we're proposing to spend those revenues. what you see on the donut chart here breaks out the uses funded by hetchy power ratepayers. both capital and operating lower local and upcountry and you know, we use these terms local and up country, right. locals a little confusing. soes up country see local refers to the expenditures that are supporting our streetlights in san francisco. so, um, supporting our hetchy power service to our customers

that are located in multiple counties, um, san francisco, san mateo, alameda, tuolumne, wherever the city has facilities. hetchy power is the power provider and up country includes the facilities managed by the hetch hetchy water and power division, who is. geographic scope ranges from the sierra to the coast range in newark, as. as agm, richie described uh. he also presented the budget proposal for the up country hetchy uses. excuse me, that's the blue parts on the donut here referred to in the budget as hetchy water. where hetchy power ratepayers fund the power costs and 55% of the joint cost s today i'm just going to present the hetchy local budget proposals and the clean power sf proposals. right. so, um, let's dig into the details on the uses in these next slides. but first let's we'll do the clean power sf

revenues. so this pie chart breaks out the uses funded by clean power s.f. ratepayers. the clean power sf budget totals for 52 452 million and 446.9 million in the two budget years. this is a very dull chart because our clean power sf ratepayers are predominant funding, operating costs and the operating costs are dominated by the purchase of power for and reliability products. now we'll talk about our our how our proposed budgets relate to our priorities and levels of service. so you have seen this slide throughout our our budget hearings. right. power like the rest of the agency, is keying in on affordability through our capital planning and program development. responsible management and investing where it matters. i'll discuss these broad priorities and the red boxed sub subordinate priorities as they relate to the specific

operating and capital requests that i'm presenting. so you'll see that that linkage as the as we go through the slide deck power also tests the proposals against our levels of service presented to you and adopted in november. um, to recap here are the five which are tied to function budget areas, power supply. that's where we're talking about reliable, clean competitive power supply, transmission services where we focus on it being cost effective and reliable. power distribution. again cost effective and reliable city programs. that's safe, reliable valuable to customers. these are programs street lights and then power administration where we're enhancing customer and user satisfaction is the focus. we have 19 objectives in nearly 100 detailed performance metrics behind these levels of service. we use these performance metrics in our annual planning process

and to identify gaps and inform our hetchy power and clean power sf budget requests. and here is the result for the hetchy power program. you see the growth from the adopted budget. the first stacked bar. and what you're seeing here is i would characterize as modest growth in the first budget year, more in the second, the growth is really driven by capital needs and debt service. and both budget years. that's the gray and darker green at the top of each bar. and in the second budget year, an increase in the purchase of power component, which for the hetchy program includes distribution charges from pg and e and that's the large orange bar at the bottom. here's the same information in raw numbers highlighting. the overall growth of 3% and 13% over the two

budget years. and you can see the drivers and their influence on the growth with the first budget year, capital and debt service contributing 9% of the overall 3% growth, and those drivers together with the purchase of power and distribution, contribute 10% of the overall 13% growth. the decrease in uh, power purchase and distribution that that -13.4 million is mostly a reduction in distribution costs paid to pg and e due to corrections and true ups. um, on how pg and e calculated our costs, the technical there's a technical reduction there of the clean power sf work order as well. that 2.1 million and that represent a change really in administrative timekeeping practices. power enterprise staff who support both clean power sf and hetchy as i said before, charge their time directly to the program. their working on, rather than indirectly charging their time to a work order that is billed

later. so we're trying to be more efficient and direct with that administrative change. same dollar amounts, just being treated a little differently in this budget, going forward than in prior budgets. the rest of the changes relate to operating budget proposals that i'm going to describe later in the presentation. in an although not a driver of growth, both labor the top row is always an important cost and valued resource source. so here we have the hetchy power position changes that we're requesting a total of 17 new positions over the two budget years. and nine temporary positions that we request be made permanent. we have repurposed positions we where we could, resulting in 12 substitution ones. we have trained and invested in quality staff, but they won't stay with power if the position is temporary or limited terme, they'll jump to another

department as soon as a permanent position arises. so generally the new positions here address emerging needs and to meet the pace of our customer needs. so that was an overview of hetchy. let me now do an overview for clean power sf using the same priorities and levels of service. you see the growth from the adopted budget. the first stacked bar significant growth in the first budget year, stable in the second and the growth is driven by an increase in the purchase of power component that large orange bar at the bottom. here's the same information and raw numbers highlighting the overall growth of 22% and 1% over the two budget years. and you can see the driver and its influence on the growth, its purchase of power that first budget year. it contributes 18% of the overall 22% increase. programat projects for clean power sf are primarily, primarily customer programs. we go into the details

on slide 22 for both hetchy and clean power sf on that. that change that you see and here we have the clean power sf position changes that. we're requesting a total of five new positions over the two budget years. seven temporary positions that we request be made permanent, and one substitution where we've repurpose an existing position already in our budget. but again, this is really about retention and addressing emerging needs. these position changes are not drivers behind the budget increase. um so let's dive into what really are the drivers i've identified purchase of power as a cost driver. and at your first hearing, you heard the same from our deputy cfo and financial planning director, miss gorbunova. describe and the high energy costs and how they are factored into the hetchy power and clean power sf

financial plans and anticipated rates, both of our programs participate in the wholesale market for energy reliability products like resource adequacy and clean energy products like renewable portfolio standard and ghg free attributes. see the steep increase starting in 2020 it peaks and then stabilizes. but really at a much higher value. and while, uh, prices are increasing, so is our customer demand. so from a financial perspective, it's both cost and volume that increase the need. on the left here you see the impact on hetchy with the orange or does it come out orange. yeah i kind of yellowy orange bar representing power purchases and delivery costs. so we have higher energy costs, higher charges from pg and e for delivery of power to our customers over the grid they own. and increased sales volume

all three contribute to the hetchy increased expenses over the financial plan period that you see here. and then on the right you see the impact on clean power sf. you see the orange bar power supply bar bump up the expenses in 2025. the higher power prices are sustained throughout the financial planning horizon. and for clean power sf again increased sales volumes are there, but they're more tempered, so the slope is less steep than for the hetchy. um uh, picture on the left. so that's all by way of background and context for the specific requests. before i get into the specific operating requests, i'm going to go ahead and pause and see if there's any questions on what i've presented so far. please commissioner jaime. thank you, miss l, that was, uh very informative. i have a question for you. uh, i'm. this is maybe, um, um, a little bit more

clarify ation rather than conte went. so why do we have the cost of using pg ac that's under, uh hetch hetchy power versus the clean power sf because is the way we provide that service to people is through clean power of sf right now. no, let's, let's let's make sure i'm clear on this. um so for the hetchy power program, we're providing fully bundled electric service. so we purchase from well, let me back up. we generate the power right? we deliver it. it comes to san francisco via transmission system and distribution. so we engage with the california iso to get it here. right. we engage with pg and e to distribute it around to our customers meters. we purchase distribution services for the hetchy program as a

wholesale customer of pg and e so on the hetchy side of our budget for purchasing power, we include those distribution charges. all right. for clean power sf under state law, pg and e continues to meter our bill, distribute, respond to outages. they provide those services. it's not a bundled utility service like hetch power is so when you open your clean power sf bill, it's a pg and e bill it's pg and e branded. there's one page and that's just for our generation services. pg and e is providing the distribution. the transmit. often there's other charges on the pg and e bill. right so that's why you see purchase of power in the clean power sf budget. you don't see distribution charges there, but you do see distribution charges on the hetchy power bill because we're providing the distribution service. got it. um, and. then one quick question is imagine we managed to

acquire those assets. um, how would this chart differ if we are the one who are providing the assets? i'm wondering, like anticipating the budget that's going to come down at some point if we are successful in that process, uh, with this shrink with this grow. i mean, i think that we still need to pay for the, uh, distribution operation of the assets, taking care of them, all of that. right? right. we would still we would, um under this scenario where we are the owner of the grid in san francisco, we would then have the cost for operating and maintaining the grid. we would be in charge of what improvements we make. uh so, so we would see a capital plan, changes associated with that. we would see operating and maintenance changes associated with that. we have projected in looking at the cost of the purchasing, the system, um estimating what we would be in,

including in a ten year capital plan to improve the system over a financial planning horizon, looking at what it would cost to operate and maintain the system if we owned it, if we were providing fully bundled, um electric service as a publicly owned utility in san francisco those costs would come below what it would cost san franciscans for pg and e power. so we see it as providing an opportunity to bring lower cost power, greater responsiveness better accountability to the regulators, yourselves and our board and our mayor. um, so an overall improvement for our san franciscans and the budget process would include all those conversations about what are we going to invest those ratepayer dollars in right. so the same kind of conversations we're having here today, we would be having just on that greater scope. yeah. and i understand that. and i appreciate that. i just want to make sure like i

know that we have done some analysis in the background to make sure we know how that cost is going to look like. i'm just wondering, like, are we continuously be, um, sort of looking into that because that bar can be smaller or depending on what quality we are, uh, the assets are left in, can grow. so it's it may shrink, but i'm wondering, like, how certain we are is going to shrink and, um and again, this is not a, um, it is important for our broader budget discussion, maybe not for the next two years. um, but i was just trying to understand how that the size of the bar would change to 2034. if we are a different looking utility. yes, yes. yeah. so larger and yes, we are continuously looking at those numbers. we have information that's publicly available about pg e system. we

are querying them, um, for more information to make sure that we have as much information as we can on the condition of the system as we look at that financial question. right. okay. um and one last question. i have on this is when you we are looking at the slide right. one quick second. slide nine. um, i have a feeling that, you know, the one that shows. yes. all the bars and the priorities we have uh, you know, i have a feeling that all those boxes applies to every enterprise. right. and i do recognize that, for example we adopted affordability policy for water and wastewater. but if we are a fully fledged utility we potentially need to have something like that for power. so i'm wondering if it's important to kind of put some of

those like or for example another example for you, it's like addressing regulatory requirements, which is not highlighted here, but the utility, the required regulatory requirements for electric utilities are also evolving due to wildfires. was flooding a lot of other things. so i'm wondering how we make decisions about which one of those boxes we should highlight and which ones we shouldn't. um, go ahead. yeah. so you're right, we're doing all of these things right. and what i'm highlighting here with the red is just those that are, um, involve a proposal that's before you. so so you're right. we have a regulatory team. we're completely engaged at the california puc, the california energy commission the california air resources board, the california iso, the legislature trying to make sure that our interests, our ratepayers interests are well represented. and we're we're making sure that the regulations that come down align with san

francisco's values without being overly burdensome and costly to our ratepayers. right. and that links to affordability. we don't have an affordability policy yet for that applies as you as you mentioned to our clean power programs. but but we are ever vigilant on affordability. we just don't have a proposal in the in the budget before you that directly connects with that box. so that's why it's not highlighted. okay so we are looking at this. we are doing the all these boxes, those are the ones you have highlighted are the ones that you are asking for. changes in the budget. yes for okay. thanks for clarifying that. you're welcome. commissioner maxwell. thank you. and thank you for a great report. um, and with that said then could you give me an example when you since, uh, on the same slide nine accountability racial equity and transparency and so what, since you said that it's because you

this is related to what you're talking about today, could you explain to me or give me an example of, of what you mean by that and how you're working on it? sure, sure. so i talked about the regulatory involvement we have. right. uh lots of attention there. um but really, when it comes to the, um, um racial equity and accountability , i think that goes more to our programs where we're interfacing with our customers. so we have you'll see a slide later where i describe the different customer programs we offer for hetchy and for clean power sf. we have a practice of focusing on addressing disadvantaged, aged and low income communities within our programs. you know, where are we going to spend our program dollars, our focus is on low income and disadvantage communities, and i think that's very responsive to that. that particular box. okay. and so then when you say power administration, enhanced customer and user satisfaction

is that how does that work? is that a part of what you're talking about? yes. so we have for example, our customer engagement team, um, sits with customers who are prospective you know, maybe it's a developer who's thinking about the choice between hetchy and clean power sf or, or pg and e service. uh maybe it's a, um, a newly constructed, affordable housing building. um, we have a large number of affordable housing customers who are coming from um, housing authority, um legacy buildings right into the new buildings in san francisco. the legacy buildings tended to be master metered, which means the tenants did not receive an electric bill. our customer engagement team goes to the new building as the customers come in as the, uh, tenants come in, we have community meetings on site to help them understand hatchy power as a as their power provider, to go over the bill

and to help them understand what an electric bill you know, all the different elements. it's complicated. um, and if you don't have a habit, uh, of interacting with an electric utility, um, you know, we take that, uh, um, that accountability, that relationship that, you know, how do we efficiently get our message across? uh, seriously. and that's an example of that. wow. that's great because and that's more people to vote in favor of because we have an idea . that's great. and then um how many positions do you have altogether? oh, uh, i have that. here, give me a moment. it's on that early slide where we talk about the two programs. what is it, 200 and. hang on a

second. i know i have it. sorry i'm flipping through here, and i'm not seeing it off right off. but it's around 250. i think when you include the um, the um, on and off budget positions. 213. sorry. thank you. so it's 213. yes and then so you're asking for how many positions altogether. so we have new positions for clean power sf that are, um. 1212 new positions. well, five new seven converted from temporary to permanent for clean power sf and for hetchy 17 new positions, nine converting from temporary to permanent. okay. so how many? that's over the two years for each of those. so how many is that? you have a number of

people. somebody figure that out. how many new positions is. uh 22. and 213. i'm bad at math. and with a camera rolling. two 3235 positions altogether at the end of 2025. yes okay. um. that's right. yeah. okay all right. so. all right. excuse me. and you have, um, going back how many vacancies do you have now? so our vacancy rate i think is around 23% at this point. it's like, huh. that's a familiar number. i think um 23. 15.3, 15.3 for hetchy and 16.8 for clean power sf. oh sorry, that's the attrition number. i apologize, the

vacancies power. is 27.4. okay. so 14.6 vacancies for clean power 27.4. vacancies for hetchy . and that was in december. wow. okay. we've done some onboarding since then. my i'm sorry commissioner. it might be helpful if you also just so just like we did with for consistency sake we did with steve robinson. how many are in the hiring process at this point if you know that information? oh uh, i don't have that off the top of my head. sorry um, but we have um, a majority of those vacancies are moving through the hiring process now, we do have quite a few vacancies. as in the classification on that is a 5602 utility specialist where we're waiting for the next list to be published. what is it? so, 3602 specialist, uh, utility

specialist performs analytical work. they have to come with some some at least three years of experience in working at a utility. so it's not an entry level position typically. um, so they have some maturity in the, in the in the business. uh, they, they that is one of our core positions, ones, um, within power, um, where, uh, where we have exhausted the existing civil service lists and are waiting for the next list to come out. so that's an example of what sort of in process one of the sort of push me, pull me point outs right where the city puts together a list. we have to wait for a fresh list to be able to make hires. uh 5601 were anticipating a list. i think that list is that one done? was just established. so the 5601 utility analyst position is the entry level position. you can come you have to have a college degree. i don't think there's

substitute options approved by the city process yet. um for that and those positions, you know that list just came out. so we'll be filling those vacancies as we go through the interview process for, for um, for utility and lists. we have a number of vacancies in very hard to hire for classifications. the general manager at the opening in the in item three and answering questions mentioned that we have high voltage crews augmentation for members um, that are contracted. we have like eight vacancies or so in that job classification. um, it's open continuously for hire. uh, anytime. um, someone says they're interested, we bring them in and, and interview them if they've met the minimum qualifications as a high voltage line worker. um, but oftentimes they, they either, um, uh, some

of the challenges we have in that area are they are not qualified to work in the united states, um, or they will have to move from a distance. and we do not provide move, move. um reimbursement, uh, so it can be very challenging when we do get candidates. it's, uh, sometimes we've we've found that when they realize the job is located in san francisco. so, uh, that they they decline because they can't see how they can make it work financially or they just don't want to live in an urban setting. um so those are some of the, the job classifications that we have vacancies in today and what our efforts are in filling them. are we also competing with with other utilities for these same people? yes. the the so we're yes, we compete with other utilities especially for our um, the high in the high voltage classifications, um, and we have been working with hrs and hr to

address uh, some of the compensation, um, differences between ourselves and pg and e, for example, um, and, and have had some success in the last uh um, negotiations where our labor and, and management came to agreement on making some salary adjustments, increases for the high voltage line worker class. uh, we also compete very much with the ccas, frankly, as well. you know, there are there are, um, community choices for the public. are cca are what that's the community choice. thank you. that's the community choice aggregation on programs like clean power sf that are operated in other cities and counties in the bay area and throughout california. there's now, i think, 26 operating, uh, community choice aggregation programs in california. we have

alumni. i like to think of them as alumni. um, uh, from our hetchy and clean power sf programs, working at six different community choice aggregation programs in california. now um, at all levels. you know, the director of san jose's community choice aggregation program is a former employee of ours. um communications data analysts. you know any any of our, uh, skill sets, right, are attractive to these other departments, these other, um uh, local government agencies and they have, uh, very relaxed most of them have very relaxed um, um, requirements for, for, you know uh, work, work when they have to come into the office where they can live, that kind of stuff. yeah yeah. so it's a tough competition. uh but we have a strong staff, uh and i think a very compelling message as we go out and recruit

, uh, with the kind of growth and development we're seeing in our, in both of our programs. yes i do too, and i, i wish there was a, um, it just seems that people knew the savings that they, that they were reaping. and if we had a way of doing billboards or something saying you know, every time something happens, pg and e has these great commercials and, you know, and so when you when you look at them, you think oh my goodness you know, and then you remember oh, okay. that's what they did. but it seems to me there needs to be some way that we can do the, um, some outreach. you know, i mean, billboards are on the busses or on muni and, and telling people this is what you're saving. you know, this is what you are giving because you own this. and if there was some message, um that we could give people not only power we need to do in everything that we do, but, um, i, i just think it would it

would really be a great story. and people would certainly appreciate whatever it is that they are doing, since it's their power. yes. well i've given you the numbers. you're our spokespeople. but yes, i hear you. i hear you. it would. we have had my 15 people. okay. we need better. we have. in the past we have done, um, like you say, the muni um awareness campaign about about the program offerings we have. um, so we can continue to work with our, um communications team and discuss what's appropriate. well, and what's appropriate it and maybe what's not appropriate. and then we can find out it's not appropriate later. but, i mean, i just it just seems that we we, we have a great story. and you, you with 230 people have done amazing work, just amazing work. thank you, thank you thank you, thank you. um

commissioner stacy. uh, just a couple of comments. in response to commissioner or because of commissioner maxwell's comments it really seems so difficult to recruit these very specialized used, um, position, especially when there's as much competition . and i actually have heard from some other managers of other, um, organized asians. they talk about how difficult it is and how competitive the field is. um, i also, i have to say, every time i see a pga commercial or a pga sponsorship, i think, well, that's why they cost more. and so i, i, i agree with commissioner maxwell that, that we really our story is compelling and um, important to get out there. i think we do that. and i also acknowledge though that that kind of

advertising and sponsorship can also itself be expensive. i have, um, just a detailed question on your charts, on pages 12 and 15, on, um, you have a category all other and i assume that's everything else in these divisions that doesn't. right as to the level of being sort of a line item, but i see growth in both hetch hetchy and clean power sf in. 2526 requests over the 23 for 25 request. it i'm guessing that some of the line items that show up in 2425 just have decreased in their amount. so now they they're showing up in all other but but there's a lot of other growth. do you have any um details on on

on on why that increase is happening or what might be some examples of everything else? sure. i'll let laura take care of that. good morning everyone. laura bush, deputy cfo. you're exactly right, that's all. kind of the miscellaneous things that didn't rise to a higher category either. a category that we know is driving the budget such as the power purchase costs or the colas on labor or the new proposals that miss hale is about to walk through. so that is things like um, inflationary costs, um, small changes that didn't rise that weren't material enough to, um, you know bring here and, um, i don't not exactly know what's driving that growth in the second year. we can certainly get back to you on that, but it's things like inflationary costs on things that were kind of put into the base budget, um and kind of smaller changes throughout the budget. yeah. and i see that we've lost a couple of line items in that year, which i assume end up in all other. sorry, i missed that one. we a couple of the line items

that show up in the first fiscal year don't show up in the second fiscal year. so i assume they've been incorporated into all other because they're just a smaller line item. yeah, i think that's fair to say. and also, i think the primary driver on the change in the hetchy, all other was insurance costs, making adjustments for insurance costs. i see insurance as a line item for hetch hetchy. the risk management work order is that does that cover insurance costs. in the second year? yes. yes nancy hum, uh, chief financial officer in the risk management work order does cover the services from the city city administrator's office. risk management for their staff costs , inclusive of any premiums that we pay for our insurance policies. yeah yeah. thank you. thanks. thank you. jamie has a question? yes one thing i want

to say. maybe a follow up on, um commissioner maxwell and some of the things i've mentioned in the other hearings we have had, which is maybe it is important for us to have a line item. it probably needs to go in the external affairs. since that's where our communication sits to, um, allocate more sort of directed risk sources into advertising. um, you know, i get a lot of calls from friends when they get their like, little page that says 92,000 tests every year on your water. right. and you know, imagine if that shows up on tv right? or on people's twitter accounts or whatever it is called now or other places that people interact with. i think that is we should do that just because, because and also the same way for the for our ca, for

our clean power sf for, um, you know the hetch hetchy power. i think we are learning more and more that communication is key in the way people sort of trust and believe in the services we provide to them. right and we need to make sure we are good at communicating, getting everything that we do. um because if you have to raise rates, then we don't need to explain ourselves every time. if we are changing a service from here to there, we don't need to expand. like i think we need to be a lot more active in the process of communicating out. so i'm just maybe like i'm proposing, maybe we need to think about having a budget line item that is focused on better for communicating to public on everything. i think i agree with you. whenever i see these advertisements that, you know pg and e talks about their, uh committed staff and how they always show up to, uh, you know,

every situation that happens. i mean we have the same thing. i you know we every day show up to emerge agencies that that come up and somebody has to film one of those and put it in a 32nd advertising in the middle of the warriors game and say look, this is who we are. i think this is important. and i would i personally think we should actually dedicate or allocate budget to it just because we want to make sure we are not just this hidden service that people just hear about when we have a, you know, an emergency or something that's quite, um, uh, you know, disaster s so that's my personal proposal to thinking about the budget in a way that we can do that. i would just say commissioners that we agree with you. um with respect to communication. and we are constantly, um, looking and

evaluating the best ways to communicate our message in a very, very positive way. as you recall, when we were talking about we're just using an example rates. we had a very robust, um, campaign. so it is not something that we are unaware of. and we are constantly looking at the best ways to communicate to ensure that we are telling the, uh, puc , um, story in the most effective way. we have greatly expanded our social media outreach. uh, so it's something that we take seriously seriously. and we've done internally and in terms of coordinating externally with, um, uh, consultants that we have had on board. so we're always looking at that and we'll continue because we think we agree that communicating in a positive way, all the good things that, um, the puc is doing is an important, um, tool. and we're looking at the best way to get to people balancing it versus our, our, our costs. so we are, um we agree with you

on that. but my one thing i would say is my point here is not like doing it when we need to. it's doing it continuously. i agree with you. sort of like not when the drought hits, not when we have a rate increase not when we have a challenge with x, y, and z. it's actually something that's reoccurring and constant is investing in this kind of communication. i mean, i , i can't speak for other commissioners, but i'm certainly willing to think about how we can dedicate resources to something more for, um, you know , continuous and recurring in that. thank you. commissioner yeah. and before you continue too, i also would like to make a couple of add ons to what the commissioners have already said. i know that, um, the city and this commission have come a long way in the last. i want to say 15 to 25 years to come to the

position where we are, where we have a proposal in, to take over the grid. and, and our position is, is that this should be our power. and that's, that's taken a long political um, uh journey and travels to get to that point. it's not been an easy road. and the fact that we are there right now, um, is, is very important. so i think two things come to my mind. one is has already been noted that we do without totally playing our hand. um, in terms of, you know, our power tactics and our legal tactics is that keeping the commissioners apprized of the what if questions that have been asked, you know, if we have this, how are these costs going to change? because not only just for pr but just for our own budgetary purposes, just knowing, you know, how much better we officially feel, but how much better we actually are going to see the cost containment that we have when we do get to that ultimate point of acquiring those, those resources so that those are under the umbrella of the sfpuc and, you

know, and part of that is, is that i know that you know, it's actually been 100 years from now where this same where water, you know went through this exact same thing you know, the big ceremonies when, when the spring valley water company was finally incorporated into the san francisco public utilities commission, you know, big ceremonies and, you know it was fighting the big boss then. and that is a history that we have here. also i, you know, sometime in my spare time, i'm going to look at a little bit more. what were the final pressure points that got you know, the robber barons to frankly say, okay let's just give it to the city. it's not worth it to us anymore. and because they are going to be putting it into the city government and we are going to be taking care of it. so keeping us apprized of all that stuff, the what if questions that other commissioners have asked is, i think is going to be important to us as we as we keep going. and i know you have been doing that but you know, the emphasis, i think you hear is acute from the other commissioners that we that we do

take full charge of this both in the public airways as well as within the policy and the interchange that you your staff has with all the different agencies and commissions that you've already report on. so that being said, unless there's any other comments, um, miss hale, if we could just continue with the your proposals. thank you. so we're going to go on to specific operating requests now um, these first two um, uh priorities are meeting new customer demands and resilience and climate change fall under our investing where it matters pillar. you'll see a number of items i'll address to speak to that and the financial stability and responsible management of our system maintenance and workforce. reducing vacancies increasing retention. that's all part of our responsible management pillar. um power interacts. uh, speaking to the meeting, new customer demands uh pillar uh power interacts with development project sponsors as um as these areas

are transformed, we have multiple projects concurrently underway. and each project has multiple phases of construction. the workload increases require more staff to meet customer needs and the skills needed to meet the needs should be aligned. we want to avoid precious engineer time for example, spent on more . uh, each project involves agreements to provide access, scheduling, administrative and analytical work, planning and engineering. many of these projects include affordable housing components and the city housing for all action plan includes improvement of existing buildings to meet affordable housing needs. some of these facilities are clean power sf customers. as we talked about uh, many are also hetchy power customers. these all include populations that we provide extra support to on move in. i talked about that a little bit already where we ensured that

they're enrolled in our customer assistance program and receive assistance and understanding their electric bills. the proposals you see here, um include non-personnel budget for software and services that will improve our efficiency and processing those those new customer requests. next, we have on the resilience and climate change pillar, energy efficiency and decarbonization investments which are key part of our resilience and climate change actions. uh seeing growth in our customer base, including households with low income as we need to continue to implement the customer programs that you see listed here and develop more programs that continue to ensure low income customers are part of the clean energy future. for that, we support building and transportation electrification with programs tailored to our built environment and our customer needs. customers need support to meet local, regional and state requirements. there

i'm talking about, for example the san francisco climate action plan. you know, it calls for 80% of trips taken in the city to be by low carbon modes such as electric vehicles and bikes. aggressive goals for increased personal vehicle electrification , uh, ambitious targets for all buildings to be zero emissions by 2040. the bay area air quality management district has adopted really impactful regulations on um, natural gas heating equipment in your homes such as domestic hot water heaters and furnaces to affect buildings in san francisco starting in 2027. you know at the state level, there's the california energy commission title 24 building codes. they've continued to challenge both new and existing building owners with requirements for more distributed generation and higher efficiency building systems. the california air resources board clean fleet regulations require all new vehicle purchases to be clean fueled without effective utility program support on a larger

scale than what is offered today, it will be difficult for our customers, especially low income and historically underserved customers, to meet these goals and requirements. uh, the position requests that you see here are temporary to permanent conversions. charging to projects. the non-personnel budget funds, those positions that i just mentioned that are charging to the project, and incentive fees paid and services provided to customers, professional services as well to support development and delivery of the programs. as both our hetchy and clean power sf programs grow, we face increased complexity in the work we do incorporating new technology onto the grid like battery storage, which increases the complexity of the california independent system operator requirements for power scheduling, time of use rates is

another example. the requirements increase meter data management, billing and rate making complexity. the new california puc requirements for clean power sf to procure capacity to meet hourly requirements, increase the complexity of our load forecasting our purchase and sales planning and implementation, and payment processing. the positions that you see on this slide are a mix of temporary to permanent conversions. substitute and new. the non personnel budget funds, software and consultant support to make system improvements for efficiency to meet the regulatory requirements under the responsible management of systems and maintenance pillar. our first request um support its maintenance and repair of our growing asset base. we have new physical distribution infrastructure. we need to keep pace with mapping and recording that infrastructure. both what we install with our own crews and what the redevelopment projects hand over to us. we

need to develop an outage management system for the hetchy customer base, as our residential and commercial customer base grows, we need to have the engineering staff to support operations and maintenance and improvement of the facility, and the engineers need software for memberships and licenses to support their work. so that's what you see captured here in these proposals . under the workforce, reducing vacancies and increasing retention pillar an ongoing theme you have heard throughout these hearings is retention on power gets great support from the external affairs community team and the business services customer service bureau. i do want to call out in particular for the customer, excuse me, the communications team, as we just discussed, embedded in our budget here, is support for the positions and um, professional services dollars. we need to keep these folks. they directly engage with our customers. they're the face and voice of our programs, particularly for

clean power sf uh, we need to support stability and consistency in marketing and education and outreach. we need to support our communication goals to reach our underserved and neglected communities, to ensure those population groups are included in the state's clean energy transition. and that's what these funding requests and position requests go toward. and we need to retain our origination and power supply staff as well, who are focused on long terme solicitations integrated resource planning and regulatory compliance science. so that's the workforce. other major operating requests. um our final operating request slide here is uh to support non personnel needs. we need to fund the charter required rate study and financial planning team that the financial planning team will manage. and we need to fund insurance for power assets that are managed by my team. and the

hetch hetchy water and power division that was a quick run through on my operating requests. any questions before i move on to capital? seeing none, let's keep going very good. we have some new hetchy projects. oh. excuse me. um. um, michelle, i want to go to back to slide 22 and 23. yes um, so on the resilience and climate change um, you sort of touched on it, but i think maybe we need to outline that a little bit more there. obviously the challenges of, of extreme heat reducing power or reducing flow, like all those things are going to sort of adapting to climate change versus mitigating climate change. and what they see here is a lot of it is focused on mitigation. i'm not sure where your adaptation plan is sort of plays in, and i would say cost

of insurance is one one of those elements that are impacting a lot of utilities is, um, due to adapting to the unforeseen events that are happening right from wildfires to, uh, you know every other thing that is happening, uh, due to climate change. so i didn't see it here. i'm wondering if this is something that you're categorized, doing it under different categories, because i saw insurances in the last slide obviously. right. but it would be good to sort of maybe this goes back to my earlier comment from the last couple sessions or meetings we have had, which is sort of falls under that climate change piece, sort of impacts every single one of these pillars. and um, obviously mitigation matters and i'm very excited to see all this, but adaptation is going to be very much driving our operational costs right? so that's one thing i'm happy to hear. if you have any comments. yes. i think, um much of the adaptation work is

in i think is in how we construct right, right. um, how we anticipate, um, what will need to change in our built environment. right. so you'll you we do that in our design um, efforts. right? as we, as we construct, um, we're also, um very engaged with the, the resiliency work within capital planning. right which is very climate focused and as has the city adapting to a new world. um, and we're also going to need to, uh, adapt in the on the power side in what we anticipate will be available to us in terms of generation. yep um, and we talked about that when, when we presented our integrated resource plans. um, so i think i think that's where you see power adaptation happening going, um, we're not in this budget requesting any, um

financial support in addition to what we already do for those um to accomplish those, those forms of adaptation. um, but we are, with respect to mitigation and that's what you see, um presented and maybe my i would like to encourage you, as i encouraged others to think about like how much of these efforts that you're asking for is indirectly or directly is going into adaptation because, for example, your financial sustainability very much hinges on adaptation, load management load forecasting. um, you know all of that has climbed, it's directly feeding into it. right? um, right. just not just iterates. it changes. exactly. so it's not just, uh, building frastructure, it's also soft infrastructure you need to add to manage the vitality or experiencing in system. and i think again, going back to the

discussion and also your workforce stuff, all i mean i think it's crazy. it's everywhere. it's everywhere. yeah. and it's not just to make it this huge thing to deal with. it's the fact that you're doing it right now. you need to plan for it. right. and how do we sort of make sure we pull it out and make sure it is accounted for in the right way? and also as i mentioned the other day and you and i have had this conversation it's like there are potentially opportunities for the power of wastewater and water to collaborate around adaptation. an so there are those opportunities, lies and how can you use your budget in, in sort of making that transition happen? right. so the whole like cross pollination that we constantly talk about and not just, uh, in building but also in operate ing. right. um so just wanted to highlight that, um, so yeah. and i'm

hearing you, i'm really hearing you make a call for an intentional city. yes. rather than letting this kind of creep up on us, let's be intentional. i think. i think we're hearing you, and especially on i mean, the insurance piece is going to become a serious problem, right? we are just seeing the change and the transition in the insurance market, the reinsurance market, and how they're sort of quickly adapting to what comes down the pipeline. and we are the receiver of whatever they are going to pick up. right, right. so what how is that going to impact our bottom line operational costs? uh construction costs, i mean, everything. um, so, yes. so that intentionality is really something i, i'm really hoping for as we are thinking about our budget and what we need and what we are doing on a daily basis. okay. thank you, commissioner maxwell. i would just like to thank commissioner jamie. i

think that's that's really great . and it really makes a lot of sense thinking about adaptation and you talked about employees and people that were going to have to have it seems like the case then could maybe come together to look at different kind of classification, work with the state work with other i mean, we're surrounded by some of the greatest institutions of learning in the world and in the country. so maybe they could come up with some idea of what you all, how you all could work together and maybe have a different kind of class action. yeah, i would say that the community choice community is really, um, supportive of each other. and so that coming together happens routinely. uh one of the more recent topics was, um, right on point to what you're talking about commissioner. and that is forming an air team. across the

ccas where we can share information, understand nd, um, each other's approaches to job classes, to compensation, to understanding what the um, um work performance environment is like, uh, to help us understand where we can distinguish ourselves in the recruiting conversations, to understand where we can amplify, um, the opportunity. right. because not everyone, you know i've been with the city a long time, and i was with the state a long time before that. not everyone wants a job at the same place for a long time. they like the opportunity to move around. so knowing that you can market it as you know, come work with us. you know that there are other opportunities. you get to stay in the community because it's they're all so proximate to each other, trying to look at ways to kind of leverage the opportunity and not just take it as a competition. right. well, i'm also thinking, though, it's not

just the people that are already educated and already know how to do this, but you have an opportunity then to go to community colleges to set up a program so you know that together, either because there's a volume of people that are going to need these folks. and i mean i would even think our own city college may may be a place where we could go and consider talking to people and educators and how we could come up with with something. yeah that's a great idea. thank you for that. okay let's continue capital. okay let's move on with capital. all so we have some new hetchy projects, um, mostly expansion of distribution networks driven by customer and partner needs for increased electrification and growth in municipal agencies . um also include adding areas of strategic investment for revenue growth through key projects with major scope um,

increase for customer growth are also included in my capital requests. and then the clean power sf capital plan is much more modest with program aims shifting to the operating budget , and it's focused on local clean energy. so the hetchy capital plan $1.2 billion. uh let's see. am i i'm a little off . sorry um, here's a summary of the numbers. uh, we are seeing growth in demand for service and that means new facilities growth in our capital needs. right. you see the summary of key projects on the right here that are driving this growth, both, uh, and here is the criteria that we recommend for the projects that we recommend uh, be funded. we went through all of the proposals from staff asking these questions of ourselves. does the project increase net new revenue? does the project address the city's

climate action and equity goals? um, is the project necessary to serve customers? um, have we made commitments already with customers that we need to fulfill and are we ready? have we got everything lined up in terms of design and contracts? if there are any that are needed ? uh, so those are the questions we asked ourselves to determine which among the proposals should be brought to you. and here's how the projects fit within the pillars as we go through the proposals, you'll see each is flagged to the pillar. um and then let's go ahead and talk about our major investments. this package of projects is the largest category, the biggest driver of the requested increase in hetchy power capital plan. uniquely, these projects will be delivered in partnership with customers. so for example, you have approved as a commission

memorandums of understanding ending, outlining the roles the puc staff and sfo staff will perform to deliver improvements to the substations that we own and operate to serve sfo. um we're not relying on our infrastructure team internally. rather, it's the customer and ourselves working on that project. the timing of these projects is also governed by customer needs. so this, um, funding position is us to be responsive to customer needs. the new load behind these projects means we'll be able to spread fixed operating costs among a larger base, which can dampen upward pressure on rates for all customers. so now i'll address each of the three in a little more detail. so the sfo substation improvements. this project has been in the capital plan already. the scope has changed and the investment

needed has increased. sfo has very aggressive plans to electrify and decarbonize decarbonize, excuse me, its operations and provide more vehicle charging services to airport patrons. our substation capacity has to be increased to serve these growing needs. uh sfo and is heche's largest customer today. we really need to keep pace with their needs. that's important to us. so that's that project. then we have the carbon free steam project next. uh, this is a new proposed investment for hetch power for and just by way of background since this is a new one, i want to spend a little bit more time on it. um, for for decades here in san francisco, many historic and downtown buildings and the civic center buildings have been heated with steam, uh, new buildings have also been added to the system over the years. an example of that would be, um, the federal building on seventh, uh, the city has both a customer

and an overseer, uh, role of sorts for the system. uh and in particular, there, you know, the steam is created at two locations, owens and distributed through a district, uh, heating piping system. the owner operator of the system is cordia. they have a franchise agreement with san francisco. so they are a franchised utility here in san francisco. and they are a for profit utility regulated by the california puc. so several city facilities and civic center, including this hearing room is a steam customer. and hetchy power and our puc audits team collab rate with the comptroller's office to review the franchise fee remittances from cordia. so over the years, this is just by way of saying we've had kind of a regulatory role as well as a customer role, um, with, with the steam loop operate hours. so

that's our current relationship, right? with this project, we become partners with cordia to convert the steam manufacture process from natural gas fueled to electricity. cordia would become a hetchy power customer. decarbonizing the steam manufacture process. san francisco's climate action plan identifies decarbonizing the steam process as a high priority for san francisco. so we see this as in alignment with our policy makers. the project allows all district heating customers, was connected to the system to decarbonize their buildings. it's a much more cost effective, feasible approach than electrifying heating at each of those buildings. so the project would fund the work to plan design and build hetchy power's share of the transmission connection from pg and e substation to cordia steam plant downtown town, where step town facility and connection to the plant would be constructed.

um. details on the responsibilities the puc will take on and those cordia will take on to complete the work are being discussed and like we did with our sfo relationship, i expect we will bring that, um set of responsibilities as that commitment to this commission. um, once we resolve how we want to handle it, once we're ready um, i think the bottom line here is that cordia plans to electrify. we want hetchy power to be the provider. we think it's good for all of our customers. there are high load factor customer. they'll be bringing in more revenue. um we're also evaluating opportunities to serve nearby customers from the facilities that we construct. so that's the clean steam project, the downtown ferry and south beach electrification project. so ferries are among the forms of transport that are required by the state to transition to zero emission. the port of san francisco is expects over 80mw

of additional load due to electrification at the port. that's not just ferries, that's overall for the port. uh, this new project in the hetchy capital plan would fund transmission infrastructure to serve the ferry electrification and future port electric load growth. the port and the water emergency transportation authority are our partners in delivering this project. we have been and will continue to work together to plan and design the needed facilities. and with this funding, we will finalize design and fund our share of the construction of the facilities needed to meet the increased electric load. our next package of projects we have a need for funding adjustments to this collection of projects that are noted on the on the screen here um, funded already in the current hetchy plan. rick call that intervening facilities

funds power work on connection of discrete projects to the pge owned grid. uh grid connections funds are used to design and build the connection of customers to puc owned distribution facilities and the affordable housing and project will be used to plan for grid connection for affordable housing projects. next up, we have redevelopment as the city renews and revitalizes projects. excuse me? properties through the development process, new electrical facilities are designed and built to hetchy power specifications. a portion of the system is built by the developer and handed over to us for ongoing operation, and a portion is built by us. this project funds the planning design and construction of the electric duct banks for the 12

kv distribution systems to serve various developments. these are the. these are the big developments like like those you see listed here. right. and again in this role we need to keep pace with the developer and meet the overall project needs for temporary construction power as well as permanent electric facilities that will serve the vertical development. next up reliability and continuity of operations. you know, as you know, at its core, response management of an electric utility means safe and reliable service. with this funding hetchy power will plan design and construct on electrical line to route power around portions of the bay corridor transmission and distribution system that's under construction. so power can continue to flow when that portion me needs maintenance. uh perform repairs when needed and replace existing electric

distribution equipment. we would implement improvements through this funding on the treasure island switchyard to remotely monitor its performance and to build generator connections to the switchyard for tie to served electric customers. next up we have streetlight repair and enhancement. so as you know hetchy power is responsible for the operation and maintenance of the streetlights that we own. that's about 25,500 here in the city. uh, these funds cover everything from simple outages and minor repairs. was converting decorative pole lamps to more efficient led. the light emitting diode technology, um neighbor or community identified areas of need of street and pedestrian lighting improvements to achieve safer and more pedestrian friendly streets. uh we perform pole assessment and rehabilitation with these funds and work supporting the use of

streetlight poles by telecommunications carriers. so that's the package of streetlight repair and enhancement activities that would be funded with this item. next up, we have the public power expansion project. we talked about this a little bit um, earlier. we continue to work on the city goal to acquire the pge owned grid serving san francisco. this project was identified in 2019 and has been in the capital plan since. the city and pge have, as you know frequently had disagreed regarding whether pge or the city is entitled to serve specific customers and whether pge terms of service are reasonable. we pay pge about $28 million a year to distribute power to our hetchy power customers. this cost is an operating cost factored into the rates we charge hatchee power customers for electric service. the terms pge imposes include oversize electrical equipment and the process pge controls for

connection to the grid causes delays in city projects getting built, delay in city services being provided like affordable housing, updating schools and health clinics and achieving the city's climate action goals. you know, but but for the public, i'll remind everyone that, you know, mayor breed had asked us to prepare a report on the options for providing safe, reliable, affordable service to san franciscans, which we did in may of 2019 when, um, she and then city attorney herrera set sent an indicative offer to pge to purchase their san francisco electric facility for $2.5 billion. please response said the assets are not for sale and the price is too low. so to get at that, the price is too low. point together with the city attorney, we have petitioned the california puc, pge regulator to set a value on the pge assets and we are working with san francisco planning as they

prepare an environmental impact report in compliance with the california environmental quality act. on the project that this capital project act funds these planning activities for expanding our hetchy public power service to all san francisco residents and businesses. so that all may receive more clean, reliable accountable, equitable, affordable power service aligned with san francisco values. the final project i want to present to you today continues hetchy power planning development and construction of rooftop solar and other technologies at municipal facilities. it also finds funds, the planning development and direct installation of energy efficiency improvements at municipal facilities. these two projects account for 40 million in the ten year capital plan and funding is sourced from hetchy customers. revenues as

well as low carbon fuel standard credit sales revenues and cap and trade revenues for clean power. sf it funds the planning development and construction of larger scale renewable and battery storage facilities at select sites. water and power staff are currently collaborate on solar facility development at water reservoirs here in san francisco, so the clean power sf ten year capital plan totals 48 million and is funded by clean power sf ratepayer revenues. as we are evaluating these programs, both the hetchy and clean power sf programs for federal and state grant and load program dollars. and if we are successful in achieving them, they will offset the revenue contribution. as i'm talking about today. that concludes my capital request. and that's my overview for hetchy and clean power sf. i'm happy to take any questions you may have on the capital. well, thanks. and i

think we do have some questions on capital. i will start it off with a couple. one in terms of the steam and the cordia project. yes. um, which is, you know, you know, raised as, um, you know questions. this is a vended. i mean, this is a a, a vendor that that we have hired. um, the city has hired, um, to do this stuff. so i have a couple of questions about, you know what their independence and how how connected they are with doing our work. um, for example, do they own any of the land or any of the equipment that is just their proprietary stuff that if for some reason this relationship stopped, they you know, we would be on the hook for, you know not having a place to do certain things or, you know, any equipment that we would therefore have to do and this is sort of like a mini mini mini pga type of a question, i guess is like, you know what is this relationship with cordia for steam? and i know you're coming back to us. so i'm not asking for a full presentation but maybe just a

sort of an idea of you know, what their relationship with us with us is, which, um, good, bad or ugly? i assume it's on the good side, for starters. yeah i think these are good questions right? i mean, i described our historic relationship, our the city's historic relationship with cordia, uh, the puc historic relationship is sort of that overseer role. i talked about that we do with our audit team and the comptroller office. um, what we're talking about, if we're successful in the clean steam project, is ultimately they would be our customer right? in order for them to be our customer we have to construct facilities to them. and those facilities, those electrical facilities would land on their property. um, we would have a point of connection between them that would separate what we own and what they own. so if they like any customer, if they went belly up, um, then we would still have those facilities. and whoever occupied the site after they leave would

be our new customer. so they do own land for their where their facilities are here. yes. yes. okay and then they have the franchise agreement that allows them to have the piping system in the public rights of way. got it. and we'll look forward to hearing you know, you coming back with that later. so okay. um, on that particular question and i don't know if anybody has follow ups on that. and then i had a question. i think all of us, you know, you know, if there's a 1.1 earthquake in paterson, you know, we hear it at 4 a.m. in the morning. so we get all these. and now with the rain, you know, we're getting them left and right. and it's a wonderful, you know, resource for us as commissioners to, you know, see what you guys have your fingers on and what's going on around town. um the one that is probably the most disturbing to me personally is the ones that come in for treasure island . powers on the powers out, the powers on the powers out. now we know it's this is a redevelopment area, and it's very complex. and they're building a whole new city out there. maybe just a quick update on the timeline when, when do

the customers out there finally have some type of semblance where their power isn't going out in the middle of their thanksgiving dinner? that's the thing that hits us at least me the most. you know, it's on it's off, it's on, it's off. and i've heard complaints about that in general. you know, blaming everybody on earth as people that don't lose their power have. can you give me a little timeline about, you know, where that final correction is going to be? so we're not hearing about the power's out on treasure island. just a quick summary of that, please. yes. so questions so the, um, a little bit for the members of the public who may be listening, a little background recall that, uh, when san francisco took ownership or began to take ownership of treasure island and yerba buena island from the federal government, uh, it formed the treasure island development authority to receive that those assets receive that that property, um, and we water

power and sewer all act as a contractor to tida to provide service to the legacy um customers on treasure island. and we now have, in addition to legacy customers where titus sets the rates for water, power and sewer services and has the customer relationship, we now have new customers with the new buildings coming online. um, so the for example, the bristol, um, a, a um, a mixed, uh, income , um, um, uh, apartment tower. we have also masaomi, uh veterans housing that's um, has is, uh, occupancy now, uh, those new buildings are on the new parts of the system that have already been redeveloped. so we are serving those customers as hetchy power customers. uh tida. no longer has a customer

relationship with those, um those those, um, buildings on on treasure island. um we are through this budget proposal proposing to connect the legacy customers, uh, distribute system to the new switchgear that serves the new customers. i just described. and that should improve, um, reliability for the legacy customers. um, the overall tida development timeline line. um. you know, it's getting more certain, uh but it is an extended timeline for overall development. uh, we can we can, um, consult with tida and give you a, an accurate. you know, snapshot of where they think, what they think the timeline is. uh, but i will say to you that given our shared concern about outages for

legacy customers, the request we have here to implement improvements to, to remotely monitor the performance of that switchyard and to build generator connections and to connect the tie to served electric customers to that new switchyard should improve their overall reliability during that extended development period that they're facing. so you asked me for a timeline. i clearly did not give you a timeline on because i don't know it. and frankly, every time i've been given a timeline over the years it seems to get extended. so um, i'm going to loop back with the tie to folks and we can respond with a timeline and writing to you for follow up. but i, i do want to assure you that if you approve of the funding we're requesting here, i expect there to be improved. but yes, that was um, i think you've answered as well as you could. i know there's not a final final

answer but it's it definitely is a concern into the in the community. those are my only questions. thank you. uh commissioner jamie. miss hill, i actually wanted to go, um to slide 33 on the cordia, uh project. i've been actually meaning to ask you this, um, and i saw it in the budget. um slide. so i waited for the past couple of weeks, uh, to have this conversation with you. so on the source of steam, um, you know, obviously, you know, some of the, uh, european countries do have these district heating and generally they use it for both heating and cooling. so so the same they use water and the water is used for heating and then goes the you know, the cooled water goes back to cool down there. um uh, facilities that requires cooling down. and then the same heat then is used again and again. um, so my

question for you is as you're talking about us decarbonizing using electricity to, um, provide died that steam. i'm wondering if there's there are other extra sources of steam around that we can repurpose for this rather than actually generating that steam ourselves. i'm thinking, um, i don't know where the entry point to this system is. so that obviously matters. um but do we have, for example, steam coming out of i don't know, our new wastewater treatment plant that, um, it's going to, to, um, be operated uh, in the east side soon or other places that we have steam coming out, or can this be repurposed by, um, using and repurposing water that we have and do the same thing? do both cooling and heating partially because that reduces the amount of electric city that we use.

um, it sort of creates this circular system that is not necessarily as demanding. and frankly, it's going to meet our decarbonization goals much faster and easier than just saying, oh we're and whatever solar energy or, uh, renewable energy that we needed to use to um, create this steam can be repurposed for other things. right so, um, so i don't know what the relationship with cordia exactly, um, entails. and i know you're talking to them and they're franchising and potentially will be working with them to evolve this relationship. i'm wondering, as part of that evolution, we can look into other ways of doing this. um, so this may actually partially feed into the request you are having here. um, but i would love to see if we can look into that a little bit more for sure. i'd be happy to have the conversation with the cordia folks. i want to be clear that

we are not. we would not be in the business of manufacturing the steam. we would be providing a different fuel source for them to be in that business, continue in that business. so i just want to make sure we're clear on the different roles. yes. um but we can certainly talk to them about the, the ideas that you're offering here. i don't i don't know, i know that some of our customers have of thermal demands. um, but i believe they provide for their thermal demands on site. um, and i think they're too far away from the existing steam loop to, um, to do anything other than that. um but we can certainly look at, at opportunities. the um, the decarbonize option requirements that are coming from the state and the city, um, may provide other opportunities. and, and we should be looking at that. and they should have a business interest in that. so there may be a nice sweet spot there. and that's exactly what i'm hoping like that. would this would sort

of trigger those conversations. and then you can build something that's a little bit even more sustainable. and um, you know, environment forward looking. yes yes. gotcha. so i would appreciate that. thank you. um commissioner maxwell, thank you. could you explain franchise agreement? when i think of franchise, i think of mcdonald's. so you know, like a franchise. so could you explain that a little bit, please? um yes. as a non-lawyer, i can give you the non-lawyer answer. that probably would be better. um, so the, um, utilities for profit utilities that use the public rights of way, um, in order to have access to the public rights of way, have, have over time struck in this stricken a relationship with their the city in which they operate. so for san francisco we have a franchise agreement with pge electric a franchise agreement with pge and gas, a franchise agreement with the steam loop

operator cordia. this allows the operator to use the public rights of way for their facilities. uh, in consideration of that, they remit revenue to the city and in the case of pg and e are obligated to move their facilities when they are in the way of a city project act. i see yes, please. okay i want to add one clarification. the entity that provides the franchise is the city and county of san francisco. so it's the board of supervisor who passes an ordinance and gives that franchise. and they last in until they get, um, um terminated. so so the provision and the remittance, um go, go between the city and the franchise is not between the puc

. mm. oh, i see yes. thank you. yeah okay. thank you. and, um okay. that's good. thank you. can i ask you a question? so does that mean then the revenue goes to the city? yes and the role that we play together with the audit team, um, is to help the comptroller's office with that math, right? because because for on the pg and e side , we know how much, um, we have used of pg and e services and what portion of the services uh, remittances are due to the transactions we have with pg and e, and then we assist them in looking at the electric bill contributions as kind of a sniff test type of a of assessment from the power staff. okay, i have a question, but i'm going to ask it later. but thank you. okay so when we franchise is

what are some of the um uh, what do we look at when we charge. what are some of the reasons why we charge whatever it is we charge them, you know, what's our fee structure, i guess. yeah. so this this goes to what, um, mr. flynn was speaking to which is the puc isn't doing the franchise in the city. is right? yes um, and typically, i think cities is recognize that there is a service that the that residents and businesses would benefit from. and then they decide, okay, is this a good counterparty to provide that service. typically they are services that require large investment in infrastructure that ends up in the public right of way where you don't want, you know, like competing systems in the same public right of way. lots of pipes. right? yeah. um, so it makes sense for a monopoly service provider, a regulated monopoly, like pg or like

cordia. cordia is the only steam loop operator in san francisco. they're the only franchisee for that service. so when the city. so you say that the city does charge them a fee. the city i wouldn't call it. i guess i wouldn't call it a fee. it's a it's a cut out, right. it's typically a cut of the revenues that the, that the franchisee would be getting. so we share in the revenues. we share in the revenues, the city shares in the revenues. correct okay. thank you. you had a follow up commissioner. okay so no other comments on capital. where are we at? we are finished with my presentation. i thank you very much for the attention for the feedback. uh that concludes my presentation. okay. well, thank you very much, miss hale. um as we have the fourth of our meetings, let us open this up to

a public comment. i just wanted to say yes. it's okay that this was really good. i really appreciate it. and all the work. um, all of you have been great. and we, um, you know, i know our job, i feel, is to. we're supposed to scrutinize and look at things, but you all are really. we have a premium service here, and you all are part of that. so thank you. thank you. and i and i would be remiss if i did not call out give a shout out to michael clark, who is my budget lead in power. made all those presentation materials look look useful and helpful to you. so thank you, michael. thank you. all right. and i think all of us , uh, would be remiss in as chair, i'd like to say just not just barbara hale and your team but, you know, all all, all four different presentations that we've had have just been you can you can see how much work went in and how thorough it was. and as i've said, uh, you know, if there's anything that, uh somebody had to pick up during

the course of the year to follow the san francisco public utilities commission, it's this, this budget hearing where you really not only get to look at the budgets, but you actually get to see what the heck does everybody actually do to make this city work the way it is? and this has been a very enlightening, not just to me and the but i would hope to everybody that's listening. so again, i want to thank you, commissioner jaime. i just want to acknowledge i really appreciated those yellow, um, box pieces on top of each one of those capital projects that said, this is very belongs. so i acknowledge that i personally very much appreciate it. the way this was organized. thank you. and for your presentation and everybody's hard work. any other , um, comments or questions before we go to public comment? just one last item. yes. um, commissioners, thank you for your comments. um commissioners. and just so you know, you obviously have had the presentation that we made, there

are a number of comments that you've made, um, some of which are longer terms, some of which are shorter terms but we have made notations of those about how we can incorporate some of your, your, your, your, your comments and questions as to, to how we do business. so i appreciate them. um, and there were a couple of things that in terms of our next presentation when the budget comes that we're going to try and incorporate into our, our, our budget planning document for, for you to when you when you consider this for approval. so thank you. final okay. thank you mr. herrera. okay. um, donna, let's open this up to public comment. do we have any members of the public present to provide comment on item number four? seeing none. seeing none. and were there any um, folks that said they were going to call in and made those? no arrangements. there are none. so that being said, we will, um, uh, i will

say that we are now adjourned and thank you, everybody, and look forward to seeing everybody next tuesday. and at the or no. two weeks, two weeks a week from tuesday is our next regularly scheduled meeting. thank you . >> hi i'm brandon the mist at

sfpuc my role to support the employees between our yosemite location to san francisco and the typical things we deal with are puc recommended and network relate an telecom i like my role it varies day to day it is a unique challenge from providing in that user conclusions i solutions on their computer or a the president on a task they're trying to complete the training is very important there are many things to stay up to date my manager has helped me making sure any skills are up to date with the skilled in my field it is about right time of day and about you know the percentage of resagsz for water and power are posh to the citizens of san

francisco and keeping those systems up and running for this is one of the challenge to progress within the organization and commit count i commit to the local government is where i want[music] >> san francisco city clinic provides a broad range of sexual health services from stephanie tran medical director at san francisco city clinic. we are here to provide easy access to conference of low-cost culturally sensitive sexual health services and to everyone who walks through our door. so we providestd

checkups, diagnosis and treatment. we also provide hiv screening we provide hiv treatment for people living with hiv and are uninsured and then we hope them health benefits and rage into conference of primary care. we also provide both pre-nd post exposure prophylactics for hiv prevention we also provide a range of women's reproductive health services including contraception, emergency contraception. sometimes known as plan b. pap smears and [inaudible]. we are was entirely [inaudible]people will come as soon as were open even a little before opening. weight buries a lip it could be the first person here at your in and out within a few minutes. there are some days we do have a pretty considerable weight. in general, people can just walk right in and register with her front desk seen that day. >> my name is yvonne piper on the nurse practitioner here at sf city clinic. he was the first time i came to city

clinic was a little intimidated. the first time i got treated for [inaudible]. i walked up to the redline and was greeted with a warm welcome i'm chad redden and anna client of city clinic >> even has had an std clinic since all the way back to 1911. at that time, the clinic was founded to provide std diagnosis treatment for sex workers. there's been a big increase in std rates after the earthquake and the fire a lot of people were homeless and there were more sex work and were homeless sex workers. there were some public health experts who are pretty progressive for their time thought that by providing std diagnosis and treatmentsex workers that we might be able to get a handle on std rates in san francisco. >> when you're at the clinic you're going to wait with whoever else is able to register at the front desk first. after you register your seat in the waiting room and wait to be seen. after you are called you come to the back and meet with a healthcare provider can we determine what kind of testing to do, what samples to

collect what medication somebody might need. plus prophylactics is an hiv prevention method highly effective it involves folks taking a daily pill to prevent hiv. recommended both by the cdc, center for disease control and prevention, as well as fight sf dph, two individuals clients were elevated risk for hiv. >> i actually was in the project here when i first started here it was in trials. i'm currently on prep. i do prep through city clinic. you know i get my tests read here regularly and i highly recommend prep >> a lot of patients inclined to think that there's no way they could afford to pay for prep. we really encourage people to come in and talk to one of our prep navigators. we find that we can help almost everyone find a way to access prep so it's affordable for them. >> if you times we do have opponents would be on thursday

morning. we have two different clinics going on at that time. when is women's health services. people can make an appointment either by calling them a dropping in or emailing us for that. we also have an hiv care clinic that happens on that morning as well also by appointment only. he was city clinic has been like home to me. i been coming here since 2011. my name iskim troy, client of city clinic. when i first learned i was hiv positive i do not know what it was. i felt my life would be just ending there but all the support they gave me and all the information i need to know was very helpful. so i [inaudible] hiv care with their health >> about a quarter of our patients are women. the rest, 75% are men and about half of

the men who come here are gay men or other men who have sex with men. a small percent about 1% of our clients, identify as transgender. >> we ask at the front for $25 fee for services but we don't turn anyone away for funds. we also work with outside it's going out so any amount people can pay we will be happy to accept. >> i get casted for a pap smear and > all the information were collecting here is kept confidential. so this means we can't release your information without your explicit permission get a lot of folks are concerned especially come to a sexual health clinic unless you have signed a document that told us exactly who can receive your information, we can give it to anybody outside of our clinic.

>> trance men and women face really significant levels of discrimination and stigma in their daily lives. and in healthcare. hiv and std rates in san francisco are particularly and strikingly high were trans women. so we really try to make city clinic a place that strands-friendly trance competent and trans-welcoming >> everyone from the front desk to behind our amazement there are completely knowledgeable. they are friendly good for me being a sex worker, i've gone through a lot of difficult different different medical practice and sometimes they weren't competent and were not friendly good they kind of made me feel like they slapped me on the hands but living the sex life that i do. i have been coming here for seven years. when i come here i know they my services are going to be met. to be confidential but i don't have to worry about anyone looking at me or making me feel

less >> a visit with a clinician come take anywhere from 10 minutes if you have a straightforward concern, to over an hour if something goes on that needs a little bit more help. we have some testing with you on site. so all of our samples we collect here. including blood draws. we sent to the lab from here so people will need to go elsewhere to get their specimens collect. then we have a few test we do run on site. so those would be pregnancy test, hiv rapid test, and hepatitis b rapid test. people get those results the same day of their visit. >> i think it's important for transgender, gender neutral people to understand this is the most confidence, the most comfortable and the most knowledgeable place that you can come to. >> on-site we have condoms as well as depo-provera which is also known as [inaudible] shot. we can prescribe other forms of contraception. pills, a patch and rain. we provide pap smears

to women who are uninsured in san francisco residents or, to women who are enrolled in a state-funded program called family pack. pap smears are the recommendation-recommended screening test for monitoring for early signs of cervical cancer. we do have a fair amount of our own stuff the day of his we can try to get answers for folks while they are here. whenever we have that as an option we like to do that obviously to get some diagnosed and treated on the same day as we can. >> in terms of how many people were able to see in a day, we say roughly 100 people.if people are very brief and straightforward visits, we can sternly see 100, maybe a little more. we might be understaffed that they would have a little complicated visits we might not see as many folks. so if we reach our target number of 100 patients early in the day we may close our doors early for droppings. to my best advice to be senior is get here early.we

do have a website but it's sf city clinic.working there's a wealth of information on the website but our hours and our location. as well as a kind of kind of information about stds hiv,there's a lot of information for providers on our list as well. >> patients are always welcome to call the clinic for there's a lot of information for providers on our list as well. >> patients are always welcome to call the clinic for 15, 40 75500. the phones answered during hours for clients to questions. >> >>(music).

>> today wire he emergency operations center for england with one activation so oversight board that one of the many activations have locations which probably has between to one hundred people at this time 340r7b 25 different city departments and hundreds of partner local partners and straight and fell partners we're in the echg a critical consultant of emergency center and surcharged with the single voice communicating with media about all issues with the apec