>> commissioner there is no forebound revenue and the hetch hetchy is modeled at market rate and those have been confronted by todd ritchie. >> yes and the other big piece is the change in the renewable energy credit strategy because there are several different categorize and they are available at very different prices on the marketplace but as far as the wholesale we have five% power purchase treatments just like the she'll agreement and so there is no speech special wholesale strategy in this model the change in the reek strategy and a change in the hetch hetchy strategy and they are agency decisions from which the program from the agency side and not some new requirement on she'll that would require going back to the drawing board, urk you are talking about changing up the resource mix rather than the local build-up pees piece for phase one. >> that is right is then a slight different number of customers with that mix. >>> 12 residential. >> it's still upall residential at this point. >>> but we want to writing on the commercial customers as soon as possible. >> that is correct but

moran races a good point if you bring up the most average and cost effective which hetchy is the most cost effective in california and it's an amazing system but i can't tell you it's firm for the next ten or 20 years and you will see that in one of the slides in the consumptions is that ap i has assumed that we have relatively standard prices and relatively affordable hetchy and that it's form year after year and that is a risk had a i can't mitigate away without collateral or or reserves. >> and typically what we do on that is we have a farming contract that says, where hetchy cannot meet the load. somebody else will and we can lock in the price for that. >>> that is typically always more expensive and so in the last ten-seven years, we typically had to buy at six to 7 cents per kilowatt hour and we are always trying to sell it at four so we are trying to maximize for hetch hetch worry and but which are having to buy when others have to buy too and so the risk is all a material matter to mitigate away and i i understand u.n. they are doing additional work on that over the next few m

bay and presented something over there insisting that or projecting that they could supply hetch hetchy power. . and that is not very easy. as you know your chief financial officer has said you can predict. the time of energy or the quantity of energy we are going to get from hetch hetchy whether it's a reliable amount to be supplied. if you deal with something like a trans -- they have more money and they can afford to pay more but, the question is are you all able to supply? now your staff, they gained again i plea with you your staff are constituent sitting down over there and they have no clue whatsoever about this presentation. in fact, they have no clue, i doubt if they can explain to you and you are welcome to bring them here to you about the resolution. this is -- stick to what is on their agenda and if you bring the variables over here and some of us can connect the dots but most people cannot. and so we have to go slow with this. we cannot introduce too many variables, which do not have certainty. in this business, in this market nobody has certainty and you are a large entity

the city of california, has determined that the economic value of restoring hetch hetchy would be $6 billion annually to the people of california and therefore, i think that is 6 billion reasons why they are key stakeholders in this process and so, we would urge you would amend or revise or have more conversation truly about this issue by requiring that instead of providing veto power to unelect of the power on the peninsula require an elect toarl component to the region it may represent and put it directly to the voters of the from a and if you are going to veto the will of the voters of the san francisco, it should be by other voters not unelected officials and secondly i would put bawsca on the hook for this so that san francisco lay pair doesn't have to pay for that and lastly, i would say put it to a vote. all of california are key stakeholders in that issue and i urge you that they be given an opportunity to way in on this issue. >> thank you mr. martial. mr. rose crans? >>> welcome. >>> thank you mr. president and commission rs thank you for the opportunity to speak here today

still saying this at the done annoy where those location are and they are still talking about hetch hetchy power and i trust your staff with i know it's the same issue for all of these times and as a permitting environmental lawyer, i hear the proposal for local build-out would you tell any understanding without any understanding that has been given to site and permanentings and that is a huge under takings and certainly without annoy nog what they are proposing. thank you for your time. >> thank you. jason freed l.a. s c o staff on laugh behalf of supervisor chair comp poe and is one comment that wanted to give on this part of the presentation was that making sure that whatever is good much local power's presentation that we are trying to use that to implement that we are not flow throwing down the launch of program and this is key for all of my commissioners and not slowing down the program we need to get this program lamped and up and running as quickly as possible and if there are things that can be utilized in his presentation great but if not we should continue to move forward and th

that even provides scenarios that hetch hetchy power could be used right from the beginning to mitigate the price increases, and moving ahead like this never happened. we're having discussions in the stakeholders meetings and other places and how to incorporate this new information. why in the world would you not do that? >> thank you very much. any other member of the public who would like to comment on these items please come forward? and seeing no one come forward we will close public comment. i want to thank puc and ms. hale for your presentation. thank you very much and i really appreciate the work that has been put together in developing the framework for outreach. i actually really believe that we need to move forward quickly as a city. i want to make sure we're successful in the program. while we don't have all the details of the early notification and education plan there, the framework is clear and i think it's a good starting point to move forward for the city and i believe that while we have had comments about talking about caution i think they're well meaning how to have a

we are 41% renewable if you include hydro electric power and hetch hetchy and pg&e hydro generation, but the goal as set out by mayor newsom is to become 100% renewable and we have a task force comprised of leaders and community and stakeholders, environmental ngo's and the local utilities and relevant city departments. the task force met for 18 months monthly to discuss issues with renewable energy development for the city and the was to do this goal within 10 years so we looked at barriers and technical opportunities, financial aspects and of course public education and awareness, and ultimately outlined recommendations around three areas, energy efficiency and utility generation and the course identified five prong strategy to help achieve this goal and the first is shrink the pay. of course by reducing the amount of lktd the city demands it's easier to get to the 100% so there are a number of recommendations want a few of them are highlighted here and strengthening the retrofit rules, promoting energy audits, and through the real estate which we did a couple we go with the lead r

pristine public drinking water to 2.6 million people in the san francisco bay area from the hetch hetchyional water system. with also generate clean renewable energy for city services like public buses, hospitals, schools, and much more. and finally, we collect and treat all the city's wastewater and stormwater making it safe enough to discharge into the san francisco bay and pacific ocean. >> in 2006 the puc was planning a record number of projects. >> the public utilities commission is a very infrastructure-rich organization. we're out there rebuilding the water system. we've budget working on power generation in the country. we've been doing sewer for the city. we're looking at a brand-new rebuild of all watt systems in san francisco and we haven't had a home that's been other than mental. >> they staff over 900 people. the puc is in two office locations. >> you know, this is such a great place for a building. if the puc owned that building and we could make that the icon i can sustainable building puc represents, wouldn't be a dramatic idea? >> so, one of the major decisions we made

. >> and, so, one other assumption, too, i thought i saw in there was the ex-hetch hetchy power would be used. are we able to do that? i thought that would be able to be used for residential. >> at the appropriate time, yes, please answer the question. >> so, we have provided a ten-year history of where we have had surplus capacity for hetchy power to the consultants. to the degree there is reliable surplus, we would look at an ability to try to make use of that. the concern is that we have noted and what i believe now a number of the participant, both the participants and stakeholders have, even though we have surplus, we typically only have surplus during certain months of the year when we have water flowing from the dam and create electricity. but then we have shortfalls during other times of the year. so, it's never even. and when we have surpluses, every other large hydro producer has surpluses, too. and that's when large hydro power is very cheap. so, we provided all the data and the key pieces that you'll be getting from them is a siting analysis which will really put -- where