Call item number 1. Number 2. Number 2. Thank you very much. Do we have any changes or modifications to the minutes . Seeing none, this opens up for Public Comment. Any members of the public would like to comment on item number 2 . Seeing none, its now close. A motion to approve the minute from the july 9th meeting. Second. And we can take that without objection. Madam clerk, can you please call item number 3. Community choicing a allegation activities report. Thank you very much. We have Michael Hyams with us today. Good morning commissioners. Michael hyams, im the director of the cleanpowersf. Happy friday, its good to see you all here. We have a full presentation for you today. We have quite a bit of slides. If i could have them right now, that would be great. Thank you. So, for our presentation today, were going to cover our usual enrollment and Service Status update. Were going to provide a state regulatory, an update on state regulatory and activitiesful ill be joined in a moment by my colleague Suzanne Merkelson to help with the legislative items. Suzanne will also share information about an exciting Equity Project we have under way. Last but not least, ill conclude with our progress and plans. Its through the cleanpowersf program. So, as we reported to you in the past, weve now enrolled more than 400,000 accounts in San Francisco. We effectively hit our capacity in terms of enrollment. There are still some accounts out there that we havent yet enrolled, which are large commercial and were engaging with them individually on a customer by customer basis this year. We have a 3. 5 opt out rate. Thats up a tenth of a percent since we last presented to you. Were still at a 96 percent retention rate, which is pretty good. We got a 1. 7 super green upgrade rate, thats up a tenth of a percent since we last presented, and that represents more than 400 of our sales. Thats going up all the time with the recent 100 Renewable Energy ordinance for commercial buildings. We expect this to go up over the next several years. There are always many things happening on the regulatory front. Today, i wanted to highlight a few for you. These are all pretty meaty topics. Im going to cover them at a high level. If you have any questions, were happy to address them or follow up with you through the executive officer. The first we wanted to mention and bring to your awareness is related to the expansion of direct access. That has come about as a result of bill 237, which was authored by hertzburg and adopted last year into law. That expanded access for nonresidential customers in california. It allows an additional 4,000 gig watt hours of new commercial electricity demand in the Service Territory of the investors of utilities to have the option to purchase directly their Electricity Supply from a third party other than p. G. N. E. Or c. C. A. Program. That starts in 2021. The bill also require it is california p. U. C. To repair a report to the legislature, regarding opening access for all customers. They opened a meeting last year to lay out the process for the expansion. There has been this year, a lottery, a selection, customers who were awarded the option to move into direct access have been notified. They have been in the process of negotiating contracts. We found out earlier this week that about 70,000 megawatt hours of existing cleanpowersf usage will be joining the market in 2021. This is a loss of customers to this new opportunity. Excuse me, this is just commercial, is that right . Just commercial. Got it. To put this in perspective, its not a huge number. Its a little over 2 of our cleanpowersf electricity sales, but i think its more important to note that theyre considering full expansion or opening of the market. Sorry, let me edit that error. Exploring it with a report to the legislature. The legislature has to authorize that. So, while direct access provides additional new choice opportunities for customers, in particular commercial customers in the market, it does create risk for cleanpowersf that customers we plan to serve and may have purchased power for could leave for a new provider. This is a risk and its something were paying close attention to. The next item i wanted to highlight, and we brought this up in previous meetings, the deenergy sayings of power lines in dangerous conditions. You may have heard of recently as the Public Safety power shutout. The california p. U. C. Has a proceeding addressing how utilities would proactively deenergize their power lines to limit the impact of power line failure on fire. The deenergy sayings has to do with the communities being served. So there are guidelines on how they would do this. It has impacts on our facilities and our city departments and our residents and businesses. So, weve been an active participant. Our contributions have been focused on making sure pg e and others are communicating with the local government to ensure that the Proper Services are notified if one of these shut offs is imminent. Also, there are plans to appropriately care for the most vulnerable members of our community. For example, those that are medically dependent on electricity. So, this is an important area that were working on. Were working closely with the city attorneys office, representing really the entire city in this prooding. Proceeding. The third item here, Resource Adequacy. This one is a little wonky. I will admit that right here at the beginning. So, please ask questions if you have any. Resource adequacy is a regulatory requirement of all sellers of power in california, includiing c. C. A. S to ensure thy acquired sufficient Power Supplies to support statewide demand at all times. Something that has emerged recently with the growth of c. C. A. S and the Retail Market are problems on how this product is traded between sellers to ensure they can all meet their regulatory obligations. We have had instances, a growing number of instances where sellers are out of compliance with the regulatory obligation, meaning they havent procured sufficient amounts of capacity. It hasnt affected reeliability because its an important part of our overall plan, they have been looking at mandating procurement of all entities of certain type of resources to ensure the power stays on. So, to be proactive in this regard, we participated with calcca. It should be formed to ensure that even if individual sellers are unable to acquire the capacity they need for compliance, this central buyer would be there as a backstop to go into the market and make it happen and spread the cost amongst all providers. Why is it that they are not meeting the level of procurement . Why are they not doing it . Is there not enough energy . Is it to come pettive . Are certain people buying up all the energy and these other groups cant . Whats going on . I think its a couple things. One is a lack of transparency in the market for this product. It isnt traded in an open market. Its traded in what we would call bilateral arrangements. So for example, the p. U. C. Issued solicitation asking for offerin offers and all we really know about the marketplace is what sellers that have this capacity offer to us. We cant look to an exchange or anything. So, the issue is that some sellers may be holding on to excess capacity, potentially for fear of being out of compliance or other reasons and theyre not making it available to the market. Thats one possible situation. So, that has just led to the situation where even though entities issue these solicitations, they dont get the offers they need to contract and submit a compliant filing with the california p. U. C. Okay. One other point about this i wanted to make, because one of the things weve been sensitive to is economy in procurement. Even under the proposal that we submitted, which is now under review at the california p. U. C. , d. C. A. S would acquire and provide their own capacity, actually any provider would. What the central buyers role is, is to procure only if the entity cant otherwise do it. So this is an argument for the field out planning . Would you say this is an argument for us to have our own build out plan . Yeah, well, i think the build out plan and the planning process are critical to ensuring there is enough capacity. Yes. The planning is always important. Yes. So the next item here, i think you are all familiar with. We presented on this in the past. I really just wanted you to know that this is ongoing. We had a big decision last year on the p. C. I. A. That was the conclusion of phase one. Now were in phase two of the proceeding. Theyre looking at some additional reforms and changes to the p. C. I. A. And the california p. U. C. Issued a proposed decision that would change some of the benchmarking calculati calculations, the methodology again. So this just came out. Were looking at it. We will either be submitting comments with the city or do it jointly through calcca. Just a reminder that this pcia risk looms constantly. Its a major Regulatory Risk and cost to our customers. Last but not least here, the california p. U. C. Also has an ongoing proceeding addressing the integrated Resource Plan and plans of the entities under state law, ccas have to submit a plan we develop as a community for certification. Related to the Resource Adequacy item, the california p. U. C. Is using this proceeding to really look at future expected gaps in power plant availability. One thing that is happening is a lot of natural gas power plants are retiring in the state, especially in Southern California. There is an increasing concern that there will be a reliability issue in Southern California in the next several years, so theyre looking at mandating procurement from entities like c. C. A. S to help supply that, that shortfall. I will stop there. Are there any questions on the regulatory topics before we move on . Okay, with that ill hand it over to suzanne, who will talk a little bit about the legislative session that just wrapped up. Hi commissioners, thank you for having me today. As mike mentioned, im Suzanne Merkelson. Im on the policy and Government Affairs team. Now i wanted to give you an update now that the legislature is in recess and talk to you about the work that our Equity Working Group is pursuing. So as i mentioned, we are officially in recess. As of september 13th, the governor has until october 13th to sign any bills on his desk. The first bill i want to talk about is 155, which we discussed earlier with you. This is one of the c. C. A. Related bills we have been monitoring this session. Calcca was initially opposed to the bill, but the amendments moved them to neutral. Now the bill is on the governors desk for signature. We anticipate it to be signed. It talks about the renewable portfolio standards for c. C. A. S. It was amended to limit to enforce these requirements. Our initial concerns with the bill is that the c. P. C. Would have an ability to impose fines relative to the requirements. We no longer have those concerns with the amendments. Thats our update on sb155. Ab235 was introduced later in the session. This would allow investors to finance 20 billion in wildfire liabilities and other obligations. The bill was sponsored by pg e. We opposed the bill and we opposed the bill before it was introduced. It was introduced at the end of the session, but the author saw no task to moving it forward. Its going to be a 2year bill. We have significant concerns with the bill, given that we opposed it so quickly. Were worried of its impact on rate payers, the impact on taxpayers, and the impact on tax exempt bond markets, which you know is vital for financing public services. Were going to monitor that bill next year and keep you updated on its progress. The last bill we wanted to talk to you about is sb550. So as you remember, ab1054 was the urgency bill concerning wildfire and financial stability, which was passed in july. The city had concerns about some last minute bill amendments as you may remember. These amendments expanded the authority over public entities that looked to acquire profit assets. The Mayors Office negotiate with the Governors Office to ensure a partial fix for those amendments in sb550. Now it partially limits that review, however it does allow for the determination of whether an Asset Acquisition is fair and reasonable to effected employees. The city supported the bill. While we still think there are some issues with the bill, were going to continue to work with all stakeholders to make sure theyre addressed. Any questions on the legislation . Yes. I have a quick one, in regards to sb550, do you have a sense of where and how labor participated in this, particularly with regards to effected employees, if thats going to be the biggest fund which they would make the determination in the future. There is certainly some concern about this bill. I would say ab1054 have those amendments and we believe that they were brought up by labor. Labor was present at all hearings around the bill to speak specifically on these amendments, which keep in mind, were a very small part of the bill overall. So you know, as were continuing our conversation around procuring these assets, this is something thats at the top of our minds and were going to make sure that any workers that work for us are treated well. Thank you very much. Okay. I would like to speak about our Equity Working Group. So, cleanpowersf has an Equity Working Group as you may be aware. My colleague is also a member. Our project objective as described here is to develop a framework for equity for use in the cleanpowersf programs, practices, and policies. You can see in this image the difference between a quality and equity. We think equity meaning full and equal access so that all people can thrive regardless of demographics. We have been working to develop an equity framework. By cleanpowersf staff members, considering affordnt, Environmental Justice and public health, and workforce development. So with the consultant, were in the process of planning for community engagement, and to vet the framework were developing. We want to make sure this framework is informed by Community Members and they feel represented in the process. As we do community engagement, we will make sure that our strategies are culturally competent, including in multiple languages and put it in action as it pertains to cleanpowersf policies and programs. Any questions on our equity group . So youre looking at the measures through racial groups as well. Yes. And we are also opening the office of Racial Equity that you will hopefully get that up and running soon. Yes, were excited about that resource. Thank you very much. Questions or comment . None, thank you very much. Thank you. Back to mike. Thanks suzanne. Okay, if i could have this slide, thank you. Okay, so i know that local investment has been a focus of lafco. So in our presentation today, im going to provide an update on our planning activities approach, and near term schedule. First of all, what does local mean in this context . When we met earlier in the year, we shared this framing of how we approach the geography of local investment from a clean energy standpoint. In San Francisco, our best opportunity for local investment includes demand side resources. So, think of this as new and more Energy Efficient lighting, insulation, or heating and cooling systems, fuel switching, such as switching from gas, heating, and cooking to electric in buildings. Also, converting fossil fuel to electricity. It includes demand response, which means improving the way that our customers well, improving our customers ability to change their demand for electricity in response to changes in the availability and cost of electric power. That may be the availability of solar, for example, on the system. Those opportunities within San Francisco also include what we call distributed energy resources. That includes things like electric vehicle charging infrastructure, Battery Energy stora storage, and Renewable Energy supply. The largest of which within the city will be in the order of 5 megawatts. Thats about the same size as the Sunset Reservoir solar project. The rest would be smaller than that. Were talking about small scale distributed. For purposes of what we call wholesale or utility scale, we defin defined the areas where larger Renewable Energy projects can be developed. Since they started serving customers in 2016, we purchased local Renewable Energy supplies from the wind farm in solano california, in alameda county, and sonoma county, in addition to the Sunset Reservoir project. Of course, were working on developing new resource us resources and ill get into that in a moment. This fiscal year were focused on four major initiatives related to the planning and fostering of local investment and clean energy. These initiatives include first working on our integrated Resource Plan or i. R. P. Its a buy in yell plan and its due to be completed in june of 2020. Were also working in parallel on clean power, buy len bsh buy len yall capital plan. It will be delivering to the board of supervisors. We also have been working on a request for offers of local Renewable Energy supplies. This was issued last august, im sorry, the beginning of august. I will get into that in depth in a moment. Were working on the development of new energy local programming for our customers, so again, this can include Energy Efficiency<