The first session will do close sessional be called out of order today and it will be heard after item number 4. After item number 4, we will go into closed session and then reconvene. Next item, please. Item three his approval of the minutes of may 14th, 2019. Commissioners, before you you see the minutes of may 14th and the addict additions or corrections. None, i move to approval. Second. Any Public Comment on the minutes of may 14th . All those in favor . Aye. Opposed . The motion carries. Next item, please. Item four is general Public Comment. Members of the public may address the commission on matters within the commissions jurisdiction and are not on the agenda today. Mr. Where are you . There you are. Commissioners, today i want to talk about career jobs. Whenever we come over here, and presentations are made, you have to be very careful that those presentations are focused. Not to long ago, we had some presentations about the water system Improvement Projects, the tail end of that. But we began by saying the sewer system Improvement Project i want to make it very clear. No other district or city where they have a task force on a huge project like the sewer system Improvement Project, that started out at 6 billion, and now it is 12 billion, and you had a task force that made some very stellar recommendations. As soon a task force had done the job, they got a commendation , and that was the end of the story. Now we have the community benefit, some 600 million, and we have two people kind of in charge of that money, and one of them, he claims that he is a gatekeeper. The other one claims that she is the chief strategy officer, that is added to her title that she has within the San FranciscoPublic Utilities commission. Commissioners, i am asking you, the money spent, the Community Benefits in the southeast sector , there are infants, our children, our youth, our young adults, our elders, those with compromised health, and more are mentally and physically challenged. They are suffering, and many of them are slowly dying, and here we have people getting 300,000 grants to open restaurants, and milliondollar awards for art. Where is our focus . Is there any empathy and compassion when you look at this , anyway we look at this . In no other place with they have allowed the task force to suggest Something Like community benefit, and then, you know, somebody else takes control and wastes the money. And you commissioners, and two of them are missing in action, you commissioners should do something about that. I am forced to be very strong with my blogs, but now it is time for the act to be implemented. Thank you very much. Thank you. And clark. Ann clark. Hello, im a city college graduate. I will talk very fast. I also left you with a somewhat blue paper in your seat, thank you. We need the sfpuc to help with suggestions to revitalize the balboa reservoir. You have the experience, expertise, planning, building, and traffic experiences that are critical for city college and our students. One of our areas that is most needed, which was the start in 2003, was the performing arts centre. I am showing you now the 2006 plans for the performing arts centre, as well as the architectural and Engineering Services that were done in 2004. The building has never been built, but now we do have the balboa reserves, reservoirs, and we do have a place for the performing arts centre, and we must go forward. This is almost 20 years later that this building has never been built, so we urge you to think about that, to remember us , and to thank you for all the experience and expertise that you bring, you are a wonderful group, and i really appreciate all the work that you do. So thank you very much, and remember, and i remember, go to lunch at your beautiful s. F. P. C. Sfpuc building. Lets talk, or lets have a cup of coffee coffee, i love your building. You did a great job. Thank you so much. Thank you. What happened to our lunch date . [laughter]. Thats right. [laughter] unfortunately, i am one of those people whose knee is not working very well, but i will get you, because we can talk together, right . [laughter] the next speaker is harry bernstein. Thank you. I am harry bernstein, im a rate payer and an instructor at city college San Francisco. First i would like to endorse the sentiments of the previous speaker, but i would like to talk about not so much not only the performing arts centre, but also the balboa reservoir project. I realize you have the wsa for balboa reservoir on the agenda. So what is going on at the balboa reservoir project, anywhere from 1100 to 1500 proposed units, that is basically the privatization of badly needed public land. There is only, i think 33 of that proposed property is set for affordable, and the rest is unaffordable market rate housing the other thing that has never come up from the staff or the presenters at the, meeting from the reservoir project, is the possibility of invoking the surplus land statute, which i believe is government 5422 to see in this case, which allows Community Groups and schools to be offered a chance to acquire k what is declared surplus. One of the reasons that hasnt happened, is even though there has been millions of dollars already spent for this project, the land is not surplus to the needs of the water department. Maybe thats the way things are done around here, but it seems like theres so much invested, it appears there is no consideration that there might be the use of this land by schools or community, but thats the law. I would like to get some greater clarity about this matter. Thank you. Could somebody meet up with mr. Bernstein to explain that . I would appreciate that. Any other Public Comment for this item . Seeing none, i will renounce the fact that we will go into closed session. Council, excuse me, how long do you think the closed session will be . There is your answer. [laughter] very hard to predict. I was just trying for those people who like to come back, i was just trying to give them an idea. Should we say half an hour, perhaps . That should be about right. Okay. , dont hold us to that, but it is a good guideline. So, please read the items were closed session. Item 22 is existing litigation for civic gas and electric corporation, and that is the only item. Any Public Comment on the item to be discussed . Seeing none, may i have a motion whether to assert . Move to assert. Second. All those in favor . Aye. Opposed . The motion c we have now reconvened into open session. There is no announcement following closed session. May i have a motion regarding what was disclosed . Not to disclose. Second. All those in favor . Aye. Oh opposed. The motion carries. Next item, please. Item five is communications. Any discretion on communications, commissioners . In a Public Comment on communications . Next item, please. Item six is report of the general manager. Good afternoon, the first item is clean power s. F. Update, rates and implementation update. Good afternoon, commissioners director of clean power s. F. For the power enterprise. For the update today, i will cover our usual clean power s. F. Customer enrolment and Service Status update and i will be providing a report on clean power rates implementation. Slides for the rates are included in the agenda packet first with respect to enrolment in service to customers, clean power s. F. Service and the current enrolment effort continues to move along successfully. As you know, we completed our april enrolment. The p. U. C. Has now enrolled more than 400,000 customer accounts in San Francisco, hooray. [laughter]. We are in the process of spending sending the final batch of enrolment notices to the customers we enrolled. In total, the p. U. C. Will have sent more than 1 million enrolment notices to customers over the four months. It is a big number. I would like to recognize the fantastic work of our Power Communications team in successfully managing that effort. Our program opt out percentage is now threepoint 1 threepoint 1 since the program lounged. That is another tenth of a since the last meeting. We continue to have a 90 7 participation rate. And the clean power s. F. A super green right is up to 1. 6 with about 5900 accounts electing to receive 100 Renewable Power from clean power s. F. Now i will turn to the slides. Last month, during our regular c. C. A. Update, the assistant general manager reported on pg and e. 2019 rate proposal, which was supported on submitted on april 18th to the california p. U. C. That proposal says that the california p. U. C. Approved in june its rate for implementation in july. Miss hale mentioned we were analysing the impact of that proposal on customers and we would come back in may providing an update of implantation of what they took in december. I have a report today on how we are envisioning this. I wanted to remind everyone what has happened over the past few months. Then i will summarize that we are proposing to implement the Financial Impact and what the schedule is looking like. Given that we have a couple new members of the commission, we thought it would be appropriate to review a few key terms of come up in our clean power s. F. Rate making exercises. First, the generation rate is the rate that recovers the cost of producing electricity. Clean power s. F. Rates compete with p. D. And degeneration rates after accounting for the exit fees that pg and he charges customers that participate in clean power s. F. The most prominent of those exit fees is the power charge and difference adjustment. You will hear that a lot. The p. C. I. A. This the ongoing exit fee that clean power s. F. Must pay on their monthly billso cover the above market cost of the Energy Resources pg and e. E. Procured e. Procured to serve them before it became they became clean power s. F. Customers. The other exit exit fee is the surcharge. Surcharge recovers a portion of the Franchise Fees that pg and he must collect from customers that purchase their electricity from a c. C. A. Program. It is a very small component of the clean power s. F. Rate formula that the commission has used over the past few years. We have included a summary of how these elements are accounted for in our clean power s. F. Rate formula in exhibit b of the deck , on slide number 27, if you want to look at that. Late last year, as we were preparing for our april enrolment, p. D. And he was forecasting his generation rate would decrease by 69 across customer classes in 2,018. They were also forecasting an increase in the p. C. I. A. In the you can see a summary of these changes at the very end of the report in exhibit c. To avoid enrolling customers into a more expensive servicing april, and to satisfy the commissions adopted phasing policy for clean power s. F. , staff proposed to reduce clean power s. F. Generation rates, and apply credit in the rate formula to offset rate increases if applicable for certain customer classes. We also propose no changes to the super green rate premiums, which we forecasted would stay competitive with p. D. And e. And are offering. Due to uncertainty around when p. G. Es rates would go into effect, the exact amount of the change the commission offers a general manager to finalize clean power s. F. Rates ones p. G. Es 2019 final rates were known, and to delay implementation of clean power s. F. Rates if p. G. Es mentation was delayed. On january 15th, the board of supervisors held a hearing on the clean power s. F. Rates were the board expressed support for the action. As we have been reporting regularly to the commission, delays by the california p. U. C. And issuing a decision on the rates has delayed the implementation of the proposed right for 2019. Typically, they will implement their new rates on january 1st of each year, but a twomonth delay by the california p. U. C. In issuing his decision has pushed that schedule back. In march, we reported that snclavalin decided p. G. E decided to split its 2019 rate changes into two actions. Increasing the generation rates in march by one point for . That rate change in march resulted in greater savings for . Power s. F. Customers relative to p. G. E service. Then in april, p. G. E filed the other part of his 2019 rate plan, requesting further increases in his generation rate for all customer classes. P. G. E also requested a decrease in the pcia for residential customers, and increases in the pcia for commercial customers. Again, the percentage changes are at the back of the deck if you want to see how things move against the initial forecasting december. In short, while we were expecting, late last year, that the rate would decrease in 2019, p. G. E is now requesting generation rate increases. Now that we have a better idea of what p. G. Es generation rates and the pcia will be for clean power s. F. Customers, we are preparing to implement the rate action from december 11th consistent with that rate action and the rate setting policies, our proposal will recover program costs, it will realign rates to have a consistent margin of savings within each rate class relative to p. G. E, it will deliver savings to customers compared to what they would have paid, and it would support the funding of financial reserves for the longterm Financial Health of the program. With those goals in mind, our right our rate of limitation would adjust the green power s. F. Project rate to align them with p. G. Es rates, to ensure a consistent margin of savings. It will help our communication of our rate plan to our customers. We would set the pcia credit adopted in the december 11th rate action to zero, this would allow us to utilize the pcia credit in the future if needed, but given the rate changes we are seeing, we do not believe it is needed at this time. And specifically, we are proposing for residential customers with a Rate Adjustment with green rates to achieve a 5 cost savings on generation and generation service, as well as a reduction in the super green premium from 1. 5 cents to 1. 07 cents per kilowatt hour. For small and medium commercial customers, we would adjust rates to achieve a three by five three by 5 savings. We are not proposing any changes to the super green. Given the change to green, they will continue to stay competitive. Finally, for large commercial industrial customers, we are proposing to adjust rates to maintain a 2 savings on generation service, and reduce the super green premium for these customers from one to three quarter of assent a cent four k wh to remain competitive. So what does that look like from a cost comparison . This slide summarizes the resulting monthly cost comparison for p. G. Es default product offering, and clean power s. F. s Green Service for an average residential customer in San Francisco, before and after our proposed rate changes. The first two bars on the left side show the cost comparison before a proposed rate info mentation with full p. G. E service costing the average residential customer in San Francisco 62. 70 per month, and clean power s. F. Green service costing 59 cents less at 62. 11 cents per month. That is before the rate change. The two bars on the right show the cost comparison after the proposed rate changes. Here, the average residential customer is paying 65. 94 per month with p. G. E service, clean power s. F. Green service would cost a dollar 63 per month less at 64. 31 per month. While the overall cost is going out for residential customers, the proposal offers greater savings relative to p. G. E then currently provided, and ever provided by the program through a rate action today. You can see full electric cost comparisons like this for small, medium, and large commercial customers in exhibit a of the report, and in exhibit b, you can look at the comparison between the green and the super Green Generation cost after the proposed rate change. We have given you a couple different looks at the cost comparison, the cost impact to customers. Assuming the rate changes go into effect on july 1st, and i will get into schedule and a second, the proposed Rate Adjustment is projected to increase in 2019 and 2020 revenue for clean power s. F. From 212. 9 million in the budget, to 225 . 5 million, which is an increase of about 12. 7 Million Dollars or 5. 9 . The additional revenue associated with this adjustment is projected to improve progress towards funding its Program Reserve targets. Under the proposal, we project that they would fully fund Program Financial reserves by the end of the next fiscal year, which is a year faster than projected under the budget. Today, we have this report that we are providing to you on the rate implementation activities. Looking ahead to, we will continue to monitor the p. G. E approval process at the california p. U. C. To determine when the rates will go into effect and whether there will be any additional changes. It is something we are looking very closely at. We are not anticipating major changes, but there could be some small changes. We plan to return to the commission with an action item to confirm the general managers implementation of the december rate action that may occur in june or a bit later depending on what we are seeing with p. G. E s final rate action. And then finally, we will implement the new clean power s. F. Rate following the Commission Action and once the Effective Date of p. G. Es new rate is finalized. That concludes the report. Im happy to take any questions if you have any. Commissioners . I have a question, i am just curious. Those persons that opt out, do they ever give a reason . We do survey them. They are not obligated to respond, but we do collect that data. I would be happy to come back and provide a bit on the responses we are getting. I will preview that. They range from cost concerns with the program, even though we are delivering savings, some are still concerned about cost, some are concerned about local government