we're seeing increases of costs from pg&e for the transmission costs. and some increased operating costs associated with the loss of our intersection agreement with pg&e. taken together we're seeing from that challenge an increases of $20 million a year in operating costs. and then finally, our third challenge that would anticipated in our balanced financial plan in our 10 year plan adapted in february with some new regulatory requirements like newark and federal requirements and our federal cal i placing requirements on us. we assumed 26.9 million in regulatory compliance costs with the standards that are embodied on us by newark and we can. and we've identified an increase for new rules of 32.4 million of up country capital needs to comply with the standards. taken together - >> i'm going to ask you to go back to the challenges slide. >> yes. >> so thank you. i'm hoping that commissioner vietor will consider commenting. i'm looking the memoranda in the passage for the public january 10th >> yes. >> you kind of summarize this in advance. i'm looking at

and e customers currently receiving funding from both electric and gas funds collected from pg and e rate pairs and pairs and the proposal will eliminate funding from -- we're keeping an eye on. other operating cca's and cca advocates have argued at the cpuc that that's not a good approach certainly for san francisco where you know green house gas reduction is a key focus, we would want to be able to you know, comarket electric saving and gas saves at the same time and reduce the operating costs of having those programs by keeping it combined even if the other program offerings were just for electricity so we're keeping an eye on that proceeding and the actual energy -- where they are having the rates adopted by the cpuc on how much the generation costs will be that they can recover as i mentioned that rate is going up to 9.4 cents a kilowatt hour and pge currently forecasting the rates to increase this january and they have also proposed significant increase in revenues that would result in higher rates by 2015 so they are proposing different ranges and proceedings there and my st

pg&e. we've seen a lot of improvement from the pg&e folks on this area. >> so excuse me. and q one 13 was july 1st of last year excuse me. >> this year. >> that's 2012 to 2013 fiscal year. >> no calendar year so starting in january 1st of this year. and that's a dramatic drop in first and second quarter pg&e used a 4.7 and puc from that to 6.2 >> i think we're getting our message. i think the he emphasis on pg&e groups has been improving performance and t this data shows staff being responsive. i think that's true of the pg&e improvements that you see here >> that's great. >> one of the more challenging areas are the areas of the street light system where we have groups. san francisco street light system as you mentioned supervisor weiner is old. and most of the assets we're talking about are beyond they're useful life and for some areas within the city it's a very old technology that's fluid and those are where we see many of the most challenging maintenance issues. parts are obsolete and it's creative work on the part of the street light repair crews to keep those syste

but we have now, some new regulatory requirements and additional costs from pg&e as it relating relateso transition and distribution. we have the project tunnel which is the asset between water and power and that's a major project. and so if you look at those that's the cause of bringing us out of the alignment again. we want to spend time talking to review where we were and what are the challenges but we also are present to come up with a plan to try to bring us in alignment. barbara will go into detail. i want to let you know at the conclusion of the presentation we'll have dialog as you know hetch hetchy has been valuable to the city. we've been able to, you know, really contribute to the city my right now i wanted to bring the visibility that hetch hetchy is in trouble and we need to pull resources together to really help hetch hetchy and the power enterprise become a good operating illuminate. >> thank you barbara hal general manager happy new year everyone. i want to make sure members of the audience know we have a power point presentation at the table. we also have a memo as the

we have higher than anticipated increases and cost for distribution services from pg & e and we are projected to be out of balance by fiscal year 16-17. in light of that, our direction from the general manager and commissioners are to really focus our efforts at the puc on solving that problem. so we are really refocusing in a way that helps us achieve our highest value revenue which points us more toward increasing the customers we serve on our publically owned utility side of the house if you will and not on our cca side. we are also looking of course at ways to reduce our cost. so that's where our focus is at puc and with respect to item a, we did make a presentation to our commission on january 14th. we did include, the general manager did include the memo that describes these issues in greater detail that i would be happy to provide to you. i provided copies to the executive director already and perhaps we can talk about that further at a subsequent meeting if you would like. >>supervisor john avalos: i think there has been some discussion about having a joint sfpuc lafco meeting. given

we'll now hear from pg&e from mark and another gentleman >> good afternoon. i'm terry with pg&e i'm joined by terry should has some information on our prevail data. i'll take boarder discussion. starting off in san francisco we recognize pg&e how important street lights are. we've made some real major changes since last year we show our commitment with the city one of the things is the development of some clear standards and expectations how lights have repaired. i've been working with staff personally to put that together and we're close to getting it wrapped up. to repair 90 percent of all simple outages within 5 days. the actual data she's about 5 days and 75 percent within thirty days that require permits and much for comprehensive work. in turn pg&e is trying to identify places to be more efficient. we've done that in our operations. so i'm going to quickly bring terry up to show the improvements that have been made quarter by quarter and i'll talk about more broader considerations >> do you have copies of the slides by chance. >> we do. >> if not can you

with the largest change with the purchase of power and our anticipated increase of costs in invoices from pg&e on transmission and distribution. you can see the capital costs stay pretty much the same 3 percent or so that the city budget for and then the real increases occurring in the transmission and distribution costs >> and where are you in the book. >> i'm on slide 15 under tab one hetch hetchy. >> i don't go up to 15. >> okay. >> okay. i building it's in there somewhere. >> okay (laughter) okay continue. >> and looking through the same set of information same slides on the capital side where you see modest changes associated with street lights expertise for our capital requests. in city. again, all based on the revenue stream district on slow down 17. we're anticipating changes because of the general fund increases and anticipated increases in the charges that are enterprise customer and those customers will be paying us. and that's all within our context of the service goals, you know, maintaining good customer service and save and reliable operations and efficient trying to achieve t

you'll see it's a relatively flat budget stipulate i except for power and growth purchase cost from pg&e. the budget is flat when you look at it in terms of even if people. the total you will budget for the sf puc have about 25 percent of the total and 25 percent is the men and women who run the operation 24/7. there are 3 service illuminates. you'll hear primarily about the project funded positions and what's been proposed for your care and caution consideration is is 2 percent increase in the office possession and operating positions. the general manager said no to almost every new position proposed and those were the exceptions so there's very few. in your packets each enterprise has 5 different tabs. between tab 3 the hundreds of positions that were either transferred or resigned so those are the few we couldn't figure out a way to shift around the way of authorization so thank you for considering those >> todd i want to point out that definitely was not popular but when we talk about project funded positions that's bans project a fund from a project so that is something that with,

on the gold triangle there is more expenses >> maybe the first time or for maintaining it it comes from pg&e. >> that's correct. >> but the b.i.d. lights are funded by the b i did. >> not the lolts but before they were established. >> and last question is the last slide the. >> current opportunity or current challenges. >> this is around using our system and the delays. >> oh, got it. >> the length. >> there you go. >> the legion system so that's our 311 system. >> right so per diem has their own system. what kari's staff does with is we close a light for legion arrest we have data we think the best data is reflect our employees that work on our system. legion is a third party check but when it's not reflects of reflective it casts a diagramer performance >> and legion is down a lot. >> legion has been down 3 times in the loose three weeks. >> it's been down 3 times. sometimes, you know, 4 hours or more so it has compacted our ability to get do the system. that's a manual process like someone has to go in and do the work as opposed to the pg&e system as soon as they're done there's an auto

the alternatives at how efficient we are with our peers as if we have to buy power from pg & e. key dates are here and it gives us a lot of opportunity to key this in the front of our minds as well as we go into budget deliberations and where we may have capacity look at revenue bonding as a source. with that, i'm happy to answer any questions. >> commissioner vietor? >> i have a question and sorry, i'm missing the gene when i was born about getting my head around this. i know some of the questions i seem to ask repeatedly. i don't know when it's going to appear, when the conversation happens where once we use our hechy power and what happens when the water to generate power, do these bonds help back fill? can we specify the kind of power that we are buying is the end question that i want to get to. we've talked a little bit about this and my trying to understand. i did have some concerns about the environmental policy perspective that what we had to do especially in line light of our power station going out in the rim fire and in the market having to buy the dirtiest cheapest p

the alternatives at how efficient we are with our peers as if we have to buy power from pg

around the country saute are getting suspicious calls and e-mails that look like they are coming from pgthey look like bills and they ask for account information. but its not just pg&e customers that are targeted. this is also targeting people outside of the service area. >> i have had issues with it even on business account. i have to be really diligent and watch for -- i've had false charges. people trying to scam our account. >> pg&e says don't respond to those e-mails and avoid opening any lengths attached to the e- mails. pg&e is working with law enforcement trying to get to the bottom of that situation. >>> postcard program in san francisco is trying to combat the city's stereotypes and tell positive stories. the postcard project was created last spring. participants in some of san francisco's toughest neighborhoods fill out a postcard and share a positive story about their neighborhood. the postcard is mailed at random to another san francisco resident who may live in somewhat more affluent area. >> people are much more similar than they realize if they take the time to actually l

. >>> if you get an e-mail from pg&e that seems suspicious, chances are it is the company. people are getting e-mails that appear to be sent by pg&e and request information about the account. if you receive one, you're urged to delete it. they are working with the property authorities to investigate that scam. >>> our chief meteorologist is with us. i don't see the rain anywhere. >> it wasn't very much. trace amounts. but that's the most rain we've had since december 7 across the bay area. and this still, now, makes us drier than phoenix in the southwestern desert. they've had 2.52 inches of rainfall. for us, less than an inch. with that new total added in from this morning, just.91. so not good news at least in the next forecast throughout this week. there is going to be a slight chance of showers coming in that seven day forecast you can see scrolling at the bottom of your screen, but as far as big time rainfall, not coming. you can see temperatures in the mid-50s right now. we do have breezy conditions across san francisco and that onshore flow staying with us. so this w

we'll watch that and see how much further we get from pg&e coming up.ic flow on the freeways for the peninsula are moving pretty smoothly. we'll see how things are developing around the bay a. smooth drive on 101 and 280. the bottom of the screen, first of all the orange overlay across the south bay where dense fog might be an issue. the road weather index, likely a factor. slowing you down for 85 northbound, 87, we also have the build there. 101 not so bad, a little slowing around capitol expressway and north of 680. the tri-valley has been moving, it has been southbound 680 we're seeing heavier traffic. out to sunol we saw early slowing, continuing north from 580 to the area and that's heavier than we typically see. the rest of your east bay, drive to the bay bridge toll plaza, you do have all lanes and the metering lights are on. back to the foot of the maze. we look to the span and the curve reports of a stall, actually a flat tire. we see traffic moving but slowly starting to build off of that curve. it's affecting the on ramp but might be visible.

the power is generated at the 3 powerhouses we have transition lines to newark california from newark we pay pg&e through the injecting enter connection agreement to move the power from newark on its lines to san francisco for ultimate distribution i hope i'm getting this right. the initial thought as part of the act and the build out we would essentially witness no. run lines into san francisco it didn't happen we got as far

the power is generated at the 3 powerhouses we have transition lines to newark california from newark we pay pg&e through the injecting enter connection agreement to move the power from newark on its lines to san francisco for ultimate distribution i hope i'm getting this right. the initial thought as part of the act and the build out we would essentially witness no. run lines into san francisco it didn't happen we got as far as newark and pg&e had build a new line so there was a deal struck for us to optional convey power as far as newark and pay pg&e to wring it the last million. it appears to me that part of that transition and distribution costs we're paying pg&e that would increase under this both the liability things the tariffs the new i a would cover that territory from nourishing to san francisco. i'm not suggesting we build no transition lines in the city but at least that high voltage transition from nourishing to of - from newark the cost motive just knowing what the cost is in the trade offices is important. it's been talked about from time to time but i don't know what the costs a

gets that money through pg and e but there's no reason why the city and county of san francisco can't apply for that money directly and have its own program on top of what they get from the pg and e fund. if we apply directly we can actually the city can get the money directly so one thing that could potentially be done the board of supervisors can take the green finance bill passed earlier in the week and use that as a model to and i know the department of environment has a lot of great ideas and the puc has ideas, merge all those together while we're waiting to get a program up and running. there's no reason why we shouldn't be going after it for the city of san francisco. >> great. >> any member of the public who would like to speak you have up to 2 minutes. >> i'm al weinrub for the record anyway this is nice to hear you know the advocates that have been working on this for a long time have called for a comprehensive plan and we had a comprehensive scope of work and it got cut short about march of last year if i remember correctly but within that -- the work that has been done calls for a number of very important measures that can be done in terms of behind the m