In all favour . Ae. Opposed . It passes. Item number four is general Public Comments. So members of the public may address the commission on matters that are within the commissions jurisdiction but are not on todays agenda. So, do we have any folks from the public who would like to come up . Ok. Item five. Item five is communications. Any discussion, commissioners . Any Public Comment . Item six. Item six is other commission business. I have one item. I just i know that were in the midst of budget hearingses and i just wanted to make sure that the Green Infrastructure offline meeting that we had requested will happen before our february 13 date. Yeah. Were actually trying to schedule that. I know brian and team is putting everything together. To have an offline conversation with you. Brian henderson, acting a. G. M. Were looking at trying to schedule for friday. This week. Friday this week. Ok. If you could let us know sooner rather than later. Because i dont know if friday this week will work. Well be prepared by friday and schedule anytime between then and great. So if we could get that scheduled, that would be great. Thank you so much. Yes. Im sorry. May i go back to communications under water supply conditions . Of course. An item and then go back to it. That all right . Someone call for Public Comment . Any Public Comment . Ok. Seeing none. My question is why to steve why is the cherry reservoir so low . I probably should know the answer to that. But it doesnt come into my mind. Steve richie. Assistant general manager for water. Cherry reservoir is on the way back up now. We lowered it to 5,000 acre feet to do work on the valve that are at the bottom of the front of the dam. And we just replaced the butterfly valve adjacent to the reservoir so those are now sealed up so we can begin bringing up the reservoir. Well be replacing two valves in front of those that are downstream of the butterfly valve. But we got through that first chunk of construction so we can begin filling the reservoir and it is starting to fill up. Thank you. I just noticed that it was very low. Ok. Number six . Other commission business. Is there any discussion from the commissioners . Any Public Comment . Ok. So item number seven. Im seven is report of the general manager. The first item i have is a clean power s. F. Update. Barbara hale, assistant general manager for power. On enrollment, we have no change in statistics since reporting january 9. Were sefrk about 8500 customer site. Our optout percentage is 3. 2 . The super green upgrade rate continues to exceed our optout rate at 4. 1 of our customers. So things going smoothly there. Looking ahead our next small enrollment will be april 2018. Were closing the wait list now. And submitting the enrollment information to pg e this week. So moving ahead with that small enrollment. Meanwhile, were continuing to prepare for our big enrollment in july. That includes contracting for growth. Well be coming back to you on february 13 for supply contract authorization. We will bring along with that the portfolio assessment and Risk Management portfolio assessment and proforma results. And we are also before the board of supervisors today on our ordinance. You recall that on november 14, an ordinance was introduced at the board requesting that the board provide a limited delegated authority to the p. C. To enter into supply contracts that would support completion of the programme enrollment. The delegated authority described in that ordinance would include annual expenditure limitations and conditions imposed by the commission on the general manager. That ordinance is at the full board today for its second reading so were on course for adoption of that, which gives us the Necessary Authority to move forward with supply contracts. And then, of course, were also before you with our bank credit facility. That is an action item today, item 11. With respect to legislative and regulatory activities, i can report that we are at the capital with cal c. C. A. For lobbying days tomorrow and thursday. The focus there is to educate and raise awareness about Community Choice interest in advance of the next legislative session. Make sure that folks are aware of our interest on local energy agregation programmes. And then, you know, the regulatory activities are largely consumed by our pcia efforts. The cpuc held work shops on january 16 and 17. On that exit fee reform, were now preparing testimony, getting ready for hearings on that case. Weve been in strong collaboration with cal c. C. A. , the rest of the Community Choice aggregators that are operating in the state and planning to operate. So were putting together a nice team, a good approach, i think. The staff of the cpuc, i mentioned last time, a draft resolution on Resource Adequacy in december and i just wanted to report that weve been active on that. The stated objective of that resolution is to avoid cost shifts from departing customers to remaining customers. Remaining utility customers by aligning the expansion of c. C. A. S and the startup dates of those expansions and new programmes with the p. U. C. s planning cycle for setting resource a adequacy obligations. We filed comment and reply comments both as the city on our own and in collaboration with cal c. C. A. So everything has been submitted to the cpuc for their consideration. Theyve indicated that they intend to take action on february 8. We dont know what that action will be at this point. So, were keeping our ears to the ground on that. We have been invited to participate in a conversation with the cpuc Energy DivisionsEnergy Director about the resolution, together with the utilities and other interested parties tomorrow. In sacramento. So i understand the focus of that conversation will be to talk about potential solutions. Its not clear if those potential solutions are expected to be implemented in the resolution or in some subsequent, more formal proceedings where well have more of a chance to air our ideas and our interests and our concerns. Another area weve been following is the solar choice and green Tariff Programme and well be submitting comments that address cost responsibility and allocation issues soon and that application that they filed. With that, ill take any questions that you may have. Yes. Thank you. I know that you are going to be giving us information on my question from last time around. Sort of i think i was couched it as demographics. But it is really around like who is our Current Customer base and then as we look towards this big push in june, where is that really being targeted towards, and just to build on that for when you do come back, im really curious about these bigger developments that are coming online. Like commission rocks, like we know sales forces enrolled in clean power. So, what are the other big opportunities, if you will, shipyard, Treasure Island that were really tracking and what are the efforts that were making to capture them as part of the Clean Power Programme . I just want to be clear. Those are part of the Business Plans. So, theyre planned to be hetchi customers, not s. F. Power customers. Theyre going to pay retail so you understand that hechi is 100 greenhouse gasfree where as clean power you start off at 40 and then you have an option to pay more to be 100 100 . The hec hi, helps pay for the infrastructure where as clean power s. F. Is just a margin that we just get on a generation portion so, i just wanted to make sure that we are all clear as commissioners that our core sbiz our hechi and clean power s. F. Is for the customers that we cant bring under the hechi to provide an opportunity for them to get 100 renewable or 40 , which by 2020 will get up to 50 of our basic offering. Yeah. And the other thing i want to point out is, you know, c. C. A. Is still risky right now with the pending legislation for the exit fees and all that. So, you know, and i know that is a challenge because when we talk about our power enterprise, we have two products or two Major Products and one is hechi where we actually give you the bill, the bill is a hechi bill. Therefore, we have the distribution and were able to distribute it to a build where as were part of the pg e bill which is just a generation piece. And the bigger margin is with the hechi. I thinks more, which i dont understand, is sort of the strategy behind and i understand that. But does that mean were always offering hechi . Irs typically what we try to do, so were clear, we provide hechi to our general Fund Departments and airport and the municipal customers because we have an opportunity to give them a price reduction. Where as in we actually provide them with the bill. We look at opportunities to hook up. Development because there is a larger area because we have to make an investment in the Union Facility or we can grandfather certain folks in to our hechi, but if folks who we cant get or make a hechi customer, we provide clean power s. F. As another alternative. So its a secondary sthafs we provide. And commissioner, id be happy to have a set aside meeting where we can do a dive again into the Business Plan where we talked about this to give you a little bit in the context of the budgets and how were approaching the kinds of customers you are talk about. Maybe it is part of the budget conversation to understand where the benefit really is in the offerings that were making. Thank you. Thanks much. Thank you. Any Public Comment on this item . Ok. Seeing none, next item, please. That concludes my report. [laughter] ok. Comment on the report. Please. I kind of got lost a little bit, too. If there is any way for us to get a graphic because i thought i had a real clear understanding and then i didnt. Is it possible for us to get a graphic prior to the next budget meeting . So i so that im clear on what we need to provide to make things clear, i mean one of the things that we could do is give you an update on the power Business Plan which talks about pier 70, mission rock. It talks about all the development that well pursue as hechi customers so we can definitely provide you that but it is in the Business Plan which i think you have a link to. And then we talk about the municipal customers, city hall and all of our customers that we have under hechi. Like, you know, the rec centres, the hospitals. Those are hechi customers. And then all the other customers there is few exceptions, but all the other customers are clean power s. F. So, maybe what we could do is maybe on one map show you the areas where theyre hechi and making the investment to do the distribution and hook customers directly up with hechi and then writs not possible that were offering clean power s. F. I think to the point of a simple visual without getting too deep into it that shows overall city use and need of power, how much of it is hechhechi and how much of it is clean power and breaking it up into municipal buildings, residential customer, commercial customer, new developments and projected growth. Something like that that just captures it in one vishlg i think would be helpful. No, we can actually do that. That would be great. That would help get us grounded. And because of this growing new line, i dont get a sense of when a new Development Comes on, do you first offer them hechi because of the distribution question or whie. S and if not, is there opportunity to choose clean power and why would choose that instead. Does that make . Ens yeah. Any other discussion . Thank you. Any other Public Comment on the g. M. s report . Next item, please. Item eight is the water supply and Conservation Agency report. If i could have the slides, please. Good afternoon, commissioners. Happy new year. I didnt get a chance to talk to you at your last meeting. My comment will be brief today. I just recently showed this slide to my board in their continuing interests in trying to track what is going on in the service area with drought rebound. So just as reminder, the top blue line is the 2013 months by month use. All supplies for the agencies. The total use, the bottom red line, is the last full year of the drought. And then the green line is the current 2017 use. Not on a calendar year basis. So, the most recent data is for november 2017 and that water use shows us 13 lower than the predrought use in 2013. And really trending downward back to that redline, which is quite interesting and something were continuing to watch and the ongoing question is how much rebound do we end up having if anything in the wintertime. One of the things we are starting to see is a little bit of spread between total water use and savings, and water use and savings, meaning theyre using slightly more p. U. C. Suspect please than they usually do. Two thing were investigating for this. Theres northern san ma toy yo county that are taking supplemental surface supplies and in november they were all taking that water. So that impacts that. The other thing is there are four agencis that have put in a minimum purchase requirement from you and they have all been put on notice as of this july that they have to achieve that. Each and every one of them is making when they have a choice to make, purchasing more p. U. C. Water in an attempt to meet that minimum purchase requirement. Overall for fiscal year 1718 to date, we have a 30 reduction. So still continuing to see a significant water use reduction w. S, that ill conclude my comment and take any questions you might have. I have a question. What are the four agencis that had the minimum requirement . Alameda county water dlaikt serves free monlts, union city and newark. City of melpides, city of sunnyvale and mountainview. Why is that . Theyve had an original purchase contract since 1984 and the reason is those agencies have access to another significant imported supply. Primarily water through the department directly or the other three have access to imported supplies at the Santa Clara ValleyWater District brings in. Because theyre in santa clara county. The thinking in 84 was actually it predated that when you went and did your bonds for new don pedro, the proof of the commitment that you had a Customer Base to repay the bonds and so those agencies that had a choice had to say, look, i promise to buy a minimum amount, basically guaranteeing a revenue stream. So, that was the reason for that. And it has been carried over from their individual contracts before the 84 contract, the 1984 contract and the 2009 contract as well. Thank you. I wasnt aware of that. Commissioners, any other discussion . Thank you, nicole. Thank you. There any Public Comment on this item . Ok. We move on to consent calendar. Item nine is the consent calendar and today we only have one item. Approve the plans and specifications and award contract number ww637 in the amount of 4,107,083 to the lowest qualified, responsible and responsive bidder, shaw pipeline. Id like to move the item. Second. Any discussion, commissioners . I would just like to say that its nice to see that shaw is still participating in a lot of our projects. And doing so for many years. Any other Public Comments on this item . All in favour . Aye . Opposed . All right. Carries. Next item, please. Item 10 is public hearing. Approve the revised super green rate premiums for the clean power s. F. Programme and proposed modifications to the clean power s. F. s net energy metring tariffs to be effective march 1, 2018. Today we have a few small changes to the programme to stay competitive. These changes that were proposing would be effective march 1. So you see in the action item changes that are programme matic and changes to rates. It would affect our net energy metring programme. That is the programme that provides bill credits to clean power s. F. Customers that own solar panels on their roofs. And then changes to the rates would be to reduce the supergreen rate premium. Im going to give you a little bit of context for these actions. Our objectives with these rate changes are to streamline and simplify the net energy metring programme. We want to we want to make sure that the programmes user friendly and administratively efficient. Especially in advance of enrolling the rest of San Franciscos net energy metring customers citywide. And then we want to ensure that our supergreen programme rates recover costs and remain competitive with the solar Choice Programme that pg e runs, thats their 100 renewable product offering. Pg e is expected to update their generation rates on march 1 of this year. Theyre proposing to increase their spending on the rate class, to increase the power charge and indifference adjustment, that exit fee we talk about by about 12 or 14 . Again, depending on the rate class and significantly reduce their premium for their solar Choice Programme. We dont know yet what the final rates will be but we have been planning and using the pg e projection. We may come back to you later in march with proposal on the green rates depending on what happens at the cpuc with the proposal that pg e put before them. And we would do that to the have the rates that are effective july 1 to be sure that customers that are enrolled in the programme in july with that new big enrollment of this year arent paying higher bills by being enrolled in clean power s. F. So there may be some more rate action. At this point, were making some proposals to you to make adjustments that would be effective march 1. So that provides you with some context for the change and i want to do a little bit of more detail on the programmatic change and then deputy c. F. O. S Charles Pearl will share a deeper dive on the actual rate changes that are before you. So on the net energy metring programme, were proposing three changes that