the u.s.? currently cca exists in six states. massachusetts was the first to come on line in 1970 -- in 1997 out in martha's vineyard and on the case. there's every approximately two hundred thousand customers. their rates are competitive with their utility. i should say that their utility is not an iou in the sense that we have them here. the utility handle the distribution side of the equation. so it is not as competitive as it is currently here in california. in ohio, there were next to follow suit in 1999. they have got a couple aggregations. the best known as the northeast ohio public energy council. they have got, i think, 129 communities now. but a large percentage of ohio has done what illinois is now doing, which is in essence privatizing cca of tradition or the committee acts is essentially as an agent for the third party supplier to come in. that has real pros and cons, and we're working hard to make sure that the local communities are not giving away the store and are demanding higher and higher percentages of green en

i hope this can be hand in hand, the cca. i hope this is just the tip of the iceberg of a longer conversation. >> commissioner avalos? commissioner avalos: if you could share with us the process of the board of supervisors? >> assuming this item is approved by both commissions today, starting tuesday of next week, i will introduce the matter before the board of supervisors. legally, it has to sit for about 30 days. it is one of the reasons to mean the time lines with and working under for the last few months, to make sure that the introduction happens in october. it would set for 30 days and it would be heard by the board of supervisors sometime in november. process was, madame clerk, lafco first or puc first? >> on the lafco resolution has presented a. -- as presented. >> we have a request of the term sheet reflects a 20-30. i don't know if it has to be made a motion with respect to the term sheet as to both the puc resolution and the lafco resolution. >> it is not stated in the resolution, it is just on the term sheet. >> th

. -- but they do the rebates and weatherization. how do we make cca a test bed for energy efficiency integrated into procurement on the supply side? as opposed to on the demand side, and how do possibly push the envelope on energy efficiency as a feed-in tariff? there are possibilities, and we hope to ride with san francisco and others. but we feel our innovations in the field. rates are the bottom line no matter where you are. i expect that even in san francisco, rates matter. right now in marin, we're looking at with the elastic is it -- what the rate elasticity of the customer base is in terms of when we are slightly higher than pg&e. and how far can you go and for how long with slightly higher rates before you start seeing any effect in your opt-out? that funding will need to watch, and i am sure you will on a regular modeling bases, to make sure you're not losing customers and thereby undermine your cca program. that is the balancing act we juggle every day. in the midwest, where they have not made a real commitment to clean energy other than oak

under the original ordinance that asked the sfpuc to look at cca at program, there were a number of program goals. lafco was charged with the responsibility of monitoring the program and working with the sfpuc. just to remind you of the goals, what we started this program to beginning with was first to provide choice to consumers, to reduce their reliance on fossil fuel, to provide reliable and stable rates, to increase local control in energy independence, and to create community john opportunities. in the past five years since we have been working in this program with the sfpuc, there has been a number of studies done by outside consultants and a number of peer review analysis that have been done because of the presentation by the sfpuc today is really the culmination of a number of years, and in our presentation, we're not going to go through all the studies that have been done. but briefly, in 2008, we prepared an outside consultant to committee choice aggregation report, which basically went through the risks, the program design, and some of the issues that he would need to look at in

separate company did a report on a suggested implementation plan, which is one of the requirements of the " cca program. it does a 9, d sfpuc put on contract and energy -- independent energy and alison -- analysis to explore the potential for renewable energy both regionwide and in the city. in 2009, another independent company prepared a risk assessment report in order to mitigate risk and figure with the risks of would be. that was peer review in 2009 by local power inc.. in 2009, that a draft term sheet was prepared for the sfpuc usage. i just want to reiterate that this is an amazing opportunity for the city and county of san francisco. it is not a program without risks, as are all new programs, but i believe that your staff, the sfpuc, has mitigated that risk. and you will hear during the presentation how that is done. it is also not without cost. because when you start any new program, with that risk, there's obviously a cost. once again, i think the staff has done an excellent job of minimizing the cost and planning on how to deal with the costs as the program moves forward. your own 201

slide 12 shows you what the magnitude of the problem was, regardless of whether cca is a good idea at this time or not. there are very few choices except for power rates and cutting costs. in the budget and 10-year capital plan that we performed -- presented, we are ready cut over $220 million worth of capital needs in the last 10- year capital plan in order to help solve the structural support paul -- short fall. to g>> that is one reason why ty did is helpful to get this in front of the board in the mayor. there is a ripple effect, which makes this a potential charge against the general fund. we're not the people that do of the board is appropriate. commissioner schmeltzer: thank you. you have looked at four options, but i assume there would be a way to mix and max -- mix and match option so what would not have to be all or nothing -- all on their rates or all from the general fund or all the last option. to limit the risk to make it laret work well because the rates have increased. i am not sure i entirely agree. that is a small amount of money would you look at -- i do not have th

we spoke about today, what will be the method for calculating the performance bond associated with the cca. it has been outstanding since legislation was passed. as discussed here today, there and others. >> commissioners, you have the letter before you. is there any member of the public that like to speak on item six? public comment is close. this letter is an item that is both before the puc and lafco. with that, madam clerk? >> [roll call vote] >> the motion passes. >> if you could entertain a motion to approve? >> it is a resolution that refers to the letter. public comment? all those in favor? the post? -- opposed? it passes. >> item 7. >> public comment. >> is there any member of the public that led to provide general public comment on any item that is not on the agenda but in the jurisdiction of the commissions? >> erica trucks with san francisco green party. it got touched on a little bit but it wasn't an action item for you today, and i think it is important for the lafco to take it up. i would like them to take of this issue of the fact that as you can see from the charts, the ci

with something in respect to the term sheet, many of the challenges are challenges that will have to be dealt with your respective -- irrespective of cca. for the city to not only provide more choices to ratepayers, but to make sure that we meet our clean energy objectives, the environmental objectives of the city. i hope and ask for your support. president vietor: i appreciate your comments, i think usyou summarized it well. i am hopeful that it can be the wedge for the opening to this long

updated electricity resource plan that i believe was approved by the sfpuc includes7 as one of the -- includes cca to meet the mayor's 100% a renewable goal. so it is understandable that our staff and the lafco staff is recommending that our commission approved the updated term sheet today and send it to the board of supervisors so we can start having a more involved public dialogue on this program. thank you very much. with that, i believe it will be mike campbell. thank you. >> thank you for the introduction, ms. miller. cfo riedstrom and i are going to sort of tag team this presentation. i will start out with an update in terms of where we are in our discussions with our counterparties and the way the program is being shaped based upon the analysis and the best way mitigating the risks before us that ms. miller highlighted. and the cfo will go through some of the financial impacts. i have an electronic presentation. just by way of a refresher, i wanted to highlight in, and i believe this was it touched on by jerrick campos in terms of the 2007 ordinance, in past presentations, we noted how the

the legislation says when you announce to someone that you're part of the cca, they are part of it unless they opt out. there are some of us that have issues about that. if you are too busy of like to read that piece of paper, you may end up getting hit with the bill. it may be a real problem. we also have an opt in program, and we of conceived of that because of a couple of reasons. one is because if the opt out program is too fast, we can get people to opt in. at the same time we roll out to a 20 megawatt program, we could be doing opt in that takes us beyond that and excess to the next increment in a positive way. so for those reasons i would recommend that we modify the term sheet to be the smaller of the programs. and that is one issue. the second issue i have is the resolution sets up an automatic process where it certain terms and conditions are met common than the general manager will be authorized to proceed. we as a commission and staff have been talking about how we change that so it would come back to the commission when it is fully baked. one of the concerns -- as a matter of

one of the questions the commission asked is if we look at ways to answer the financial liability program through cca alone. one of options would be instead of having hetch hetchy for the general fund pay for startup costs, how would it look if we adjusted the program to perhaps make it a little less screen, but still charge the same rate? that would still be higher and better and more green than any other marketplace product, but nevertheless, this does that for you. what it shows is that the very top the renewable portfolio of not being 20% minimum. then that goes all the way through to 100% to the far right. the far right column is the proposed program that mr. campbell walked through with you where we would need a customer rate of 11 cents per kilowatt hour. for most customers, this would be pennies per day or less than $1 per day to be able to for dissipate in 100% green product. however, if we needed to recuperate at $19.5 million over the 4.5 years by de-greening the program, it does not generate enough cash. it would only generate $7.5 million needed to repay $19.5 million. this cannot be an

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the main reason for that is so that we can get ahead of the global warming curve, not to stop with cca, but a full build out of not only electricity but electrified mass transit. so that we can really take a bite, even as the city, by ourselves, out of global warming. if we do it right, we can get the extra revenues for electricity itself while we are installing things like solar panels and efficiency measures for those agencies that are currently getting a deal on electricity such that their bills may not have to change that much. the idea is to start right now the figure out how we can get the extra revenues so we can start building out the efficiency. and figure out the big picture so that it does not cause pain to the agency's that have been leading the deal that they have got, but still supports a really robust renewable energy system and electricity system in the city. some of us end up supporting public power in the city as well. i am hoping they will take that up so we can start figuring out a way to get a lot more revenue that is badly needed for the goals that we talked about

the reason we have gone into this space is that there was an executive order. there was a mayor's directive. there are other pieces. cca, i do not know where that will go. but as part of the build up, it may be important to look as part of energy generation. maybe there is a sidebar to our principles and values that say that these values also need to come into play, short of doing too much of the rubric of methodology, but it is something that we are keeping track of, and i would like this to be a framework overall it will not be horribly difficult, but it is true. >> you have given us a lot of information. we can give you some thoughts and bring it back to you. commissioner: when? because i know this has taken some time and has been a big project. >> maybe we need to have another discussion because we hit a roadblock. commissioner moran: i was looking through some of my old stuff, and there was something involving be keeping -- bee- keeping, and that asked about another agenda item. that is one of the longer emails i have seen recently. how can we keep this cogent enough and meaningful enough and then put it up on the

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the first presidential caucus state. a new poll shows iowa voters are leaning toward herman kaund cca mitt romney for the republican nomination% slelead. the iowa caucuses are set for january 3rd. ron paul did okay in the "register" poll but he really excelled in the straw poll of likely iowa voters because he showed up. he got 82% in the national federation of republican assemblies presidential straw poll. herman cain was second at 15%. paul and rick santorum though were the only candidates who showed up in des moines on saturday. >>> weekend polls are just part of the story in iowa, of course. cnn deputy political director paul steinhauser takes a look at the week ahead in politics. >> good morning, alina. most of the republican presidential candidates will spend much of this week in iowa, the first state to vote in the primary and caucus calendar. on tap, republican governor on tuesday and a gop party dinner friday night. the next day, two of the candidates, former godfather's pizza ceo herman cain and former house speaker newt grinning grich face off in a debate in texas organized by a tea party group. >> paul steinhauser

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