Equal or less than penguin that is the affordability weve leading with the affordability and cannot you know deliver the program equal or less than penguin we will have the policy come back to you so milestones that are upcoming i want to make sure youre aware of and barbara will talk about that one we talked about last time was that pg e recently put forward their pc i a their power charge and adjustment which is pretty sure the exit fee if you no longer choose to be receiving the power from pg e or go to the cca that actually charge a fee they went to the california puc and they have something that item before the california puc which they would like to increase by 94 percent increase that has we talked about last time the way were offering our product were making sure that our customers total bill is equal then it was if they were in pg e customer which means our jurisdictions has to be low enough to absorb it by increasing the pc i a were actually having to put a lower generation that means we have to feed into our margin that is why one of the items on here is a really resolution urging the california puc to reject pg es proposal to increase the fee it impacts the program that is the one thing out there and the other thing we want you to adopt the business practice policies so it really helps the guide the implementation and Ongoing Operations and approve the schedule raised and charges for phase one of the program and then also the stand by letter credit that supports our supplies with the program and so barb will spend time walk you through the changes in the program and then have discussion on what you want to see as we move forward. Thank you general manager Kelly Barbara hale assistant general manager for power another big milestones for cleanpowersf weve produced the final draft copies for the public youve received copies as well ill do as the general manager said walk you through the new information since weve presented on november 10th specifically associated with additional working capital refresh the supply pricing and the pg e revised exit fee the general manager mentioned well also look at what that means to our program projections our final projections how we you to adjust the policies in the Advisory Committee of the new information and give you a contract workshop with the milestones of the calendar for launch so first up the goals the program that is something that has not changed sticking with the Program Goals and the Overall Program design it is fundamental to launching the program so those things have not yielded changed had a has changed new information weve present to you on november 10th on november 13th the california puc administrator law judge overseeing it issued a proposed decision agreeing with pg e exit fee were expecting according to the california puc schedule a decision on this item on december 17th we have also worked with the board of supervisors to have a resolution for the record where the board about urge certain acts the pg e and the action before you today item 18 that would have you urging the c p to denouncement alternative proposals that help to mitigate the rate impacts on customers of pg e proposal and to express support that the california puc reexamine how to calculates and how it supplies to pg e customers thats a quick summary of action were looking for were also the other piece new information an inclusion of the 4 million in working Capital Loans and we have since november 10th received a supply refresh from the Supplier Companies were working with and negotiating with and that reduces our projected costs for supply for the program and thats at 70 percent of the Program Costs of supplies that is an important refresh for us. Can you i think there is a lot of information especially new information im wondering too pause for a minute i have a question. Sure. Ill be happy to to take youre questions. So this december 17th decision is pretty important i know that our love our state literatures are they engaged as echoing it this feels like a moment to be able to see what can happen on this important decision auto and alice may speak more but engaged with our sacramento legislators and lobbyists and working with them we are proposing various letters send work with the other cca associations trying to make sure that we have a very engaged voice at the california puc myself and some of the puc San Francisco puc staff a calendared to meet with the couple of the advisors for the commissioners there to make sure we have a facing face to face meeting what the impacts on our program and cca generally. Great. That is important and then on the second item whats the 4 million Additional Capital loan for. That of the working capital in order to support the launch the program we had the hetch hetchy loan was set at 4 million we requested an additional 4 million to give ourselves for the launch room it turns out quite important to us now that the program has taken this the hit on the financial projections from the pg e action took youll see that explained in the next slide. Okay. Great. Anything else. I have a question i want to understand more thoroughly about the exit fee. Uhhuh. Im assuming and maybe the correct me if i am wrong assumption the people cut to the chase im assuming it is the fact that very purchased the power now that power will not be used thats the fee they put on the personal loan is if sort of the power may pg e has made a commitment either because they own generation or theyve purchased generation assuming that a certain amount of customer if a customer leaves the california puc said you can charge their customers their share of the power youll have to pay forest they left. Holy ghost how long does it last. It is bureaucratic and archiveic there is in Expiration Date under the current puc date in calculating the exit fee that is part of the reason we want them to reexamine how they calculate it. Thats not right i mean a contract cant be that long. Correct and if you know prudent Utility Management required or requires that long and mid and short time candidates they should be forecasted to match and departure of youre Customer Base pg e is getting that wrong if we continue to pay exit fees theyre not forecasting the low departure appropriately so theyre not doing their jobs right or the reshths have set up a methodologies that didnt loot the costs one of the two things is happening we want the puc to investigate that is before you in item 18. Another question on previous question so in a sense it is like three hundred plates and chair mar the guests not showing up but pg e can turn around and sell. We should only have to pay in pg e is going suffering a loss. Right. Which is why this conversation engaged with the regulators and the legislators is very important because it didnt sync up. Right and depending on how things workout on the 17 we may find ourselves back talking about what sort of legislative activity we should be pursuing we need this to fix an improvement on this for the programs ongoing success. You know to that point and maybe come back to this after the presentation you sort of applied saying the Program Design is not changing but you know the faensz approach in the neighborhood weve selected not asset on affordability and so it might are implementations for Program Design. Like i said were leading with affordability so if i cant offer and setting price or cheaper ill pause unless youre direct me to offer more expensive programs to me you know if we cant meet or beat pg e we need to think about it right now we feel we can we are you know planning were go over some of the things well do to try to mitigate if something were to happen next year that will challenge that you know we do have some levers we can pull but the intent of the program is to leave with affordability to i dont want to say that were going to make it more comprehensive. Im suggesting that but suggesting something in the program skwien that is not about pausing but looking at you know a different place to launch or a phased approach or inclination or combination of activities maybe affordability. Well go over it you know i dont want to steal her thunders were looking at whatever you know areas of how were launch to minimize that effect. Great but all of those things are talking about the overall financial projections and the slide you see here shows the same slide we shouted on november 10th able to fund the reserves with the operating and the contingency stabilization reserve those are circled in red at the bottom the 3 new pieces of information that field into those 3 items 1, 2, 3 with the green arrows lets talk about each of those number one thats the exit fee impact it reduces our electricity Sales Revenues by 88. 4 million over the first 5 years and our Capital Improvement plan sorry youre working capital loan increases by 4 million that is number 2 and then the third item to our advantage is the lower supply costs associated with the supplier price refresh we got so the pc i reduces the projected revenues by 8. 4 million this is advocating the california puc to revisit how it is calculated item 18 that the number one is our largest impact and it is one of the sensitivities that we evaluated a price change and so we also modified our sensitivities analysis from november 10th ill talk about that just a minute the fact when you look at the bottom you only see one number circled thats our new financial observed to fund our reserves but no longer agriculture to have the stabilization reserve within the target this is an important change to note the kind of action that pg e took with the change in that rate element as i say the kind of action we performed a Sensitivity Analysis the reserve was to help us weather our way through changes like that without a reserve no longer have a cushion to weather on effect like that this is the importance have lost the rate stability reserve those are projections they assume that pg e request is grant by the california puc and whole so it sort of the 1 30 i dont want to sound like im running on the brake but part of the exercise to test our Program Design and method of deploying stuff like that so holed up to the goals the Financial Stability of the program. Oh, i see i didnt quite go through all the animations there but theres all the numbers now so i mentioned the Sensitivity Analysis it is Sensitivity Analysis that was presented on the 10 it was conducted on the key risks of the pg e regulatory Hidden Valley high school the left pg e changes and the revised sensitivities using the new information so basically, if the cu puc adapts it the program realize the risk and then prior to launch and as i mentioned without the ability to use you know were this to occur we wont have the cushion the rate go stabilization to weather through this is a thin margin business as weve talked about tonsillitis tenth we are that projecting an 8 percent margin and now what we are looking 6. 5 our small margin you know it has become smaller i want to emphasize that all the Business Plan and Risk Assessment materials are based on reasonable assumptions some Key Assumptions will become more clear and settled after january 1st importantly the pg e generations and exit fee will be gotten e known and the Electrical Supply costs known and meanwhile well have to continue to plan and prepare and to address this new information were making proposals to change proposed changes to our adopted best practices so on the tenth we had proposed the general manager having some rate go flexibility within the year were removing that wear i i think were aware that the process the rate making process can be accelerated, the instead of this form of flexibility youll see in the rate setting item 20 on todays agenda there is a Administrative Authority to adjust the rates based on the c pi were replying that and recommending a change on november 10th recommend a 0. 5 rate now a 0. 25 to demonstrate our rates are lower but to provide some small amount of additional revenue and then the larger what more impactful change is the change to the reserve policy to allow the contingency and Rate Stabilization reserve to be funded at a slower pace that will allow us to continue forward with the program but again without that cushion ill refer to as that cushion now, when we get to january and the general manager is faced with looking at what are our costs can we set our rates at are below pg e rates and recover ore operating reserve when were at that moment if it looks like we are going to need to pause we can we can look at pulling some of the levers we have we have talked about the ability to modify the customer mix of it have more commercial customers in the earliest part of program than planned that brings in addition revenue and be able to look at the enrollment area you know were looking at citywide; right . For our initial enrollment and looking at we had initially proposed automatic enrollment ignore part of city and moving on to the central part of city and have more of a mixed of central San Francisco than previously recommended we might want to look at not offering automatic enrollment to customers in the low income care program from the commissions is concerned about the affordability and if were lose that battle once we see what the commission across the street does at the california level you know we might want to make some of those changes to help to buffer the program some also. We pay hetch hetchy. Yes. And then always the possibility we could repay the hetch hetchy loan at a slower pace than modeled that Internal Revenue service us to go back to the board of supervisors to take action the board sets the schedule for repayment. So thats the quick overview on the plan changes im ready to move into the Contract Negotiation if youre ready. May i have find it not surprising but egregious to pull this stunt ill call that that go using the word pause makes everyone a little bit tense whatever we support this and to youre point earlier the cu puc how those charges are calculated and what are you going to do with that money this is the tricks to detail but by the pg e move is disconcerting ill say that through the chair. Commission. A couple off points within the Business Plan and practices ill tell you. Ill give a contract update and the milestones schedule but, yes. 3 things i want to talk about and if so it more appropriate to wait a few minutes let me know one is that in the rip between cca and hetch hetchy we have tried to maintain this as separate operations as soon as possible a couple of areas that line gets crossed one is the loan for the working capital and the presumption there from the fireman succeeds that loan will be repaid so it is a loan as opposed to a gift the larger area hetch hetchy is the credit for the letter of credit that basically back stops the power purchase contracts if we fail to enroll people were in a position to have costs but no revenue the letter of credit stands behind that and makes the Power Providers whole the cost of the letter of credit the annual cost is built into the cca program as i understand. To the full stent the letter of credit 40. 01 of the things i asked the few minutes ago folks to basically do a stress test given the 10 year plan what were the impact of that date and i think it would be important for finance staff to present the results of that and the other two things in terms of one is longterm and one short term the short term issue we have talked about making go solar an over and over are cca and i was a and other hetch hetchy customers the redevelopment areas that is not in here it is something that as we contemplate the marketing the program any grove we can have makes the program for interesting to folks that are not arent you can keep an eye on the dollars i felt strongly if i dont see the utility purpose of us funding a program for other peoples customers so that is the one and the second one is the criteria for scaling beyond the rollout the 50 millions and now going to the next increment what is the thought process in under the criteria for saying yes, were ready whats is definition of success that says we have met the criteria the letters are funded whatever else the Customer Base. I think that is the key is the operating reserves are funded. Okay. As you look at the phasing plan as it is laid out in the Business Plan thats the threshold that had to think be met before the next set of customers could be brought on. Part of the rebate that is important as you go to the next phase that which you have reserves and the demands for reserves gets bigger. Youre immediately out of guidance as soon as you bring on the new customers. You need to think that through having the level of reserve enough what is the way to think about that and the letter of credits how were dealing with the back letters of credit dpaing with an expanded letter of concreting credit or some other thinking that needs to go into that in your presentation the material provides to the commission and in the Business Plan a section that talks about scaling or the phasing policy and i think that is a good start i think that could be more explicit that is something ill ask we do as a we go forward the short time the products that included go solar and little letter of credit exercises. So maybe ill talk about the go solar we had an opportunity to talk about that the mayor feels that go solar is a program hes persuade proud of it creates a lot of jobs and is for everyone to have a conversation which we talked about of having go solar really tie into our customers i think with her talking about that we were talking about the power enterprise customers and so at this tim