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MEETING
of the
POWER PLANT TASK FORCE
Thursday, September 24, 2009 at 4:00 p.m.
City Hall
1 Dr. Carlton Goodlett Place, Room 408
San Francisco, CA
1. CALL TO ORDER AND ROLL CALL
Chair Philip DeAndrade called the meeting to order at 4:10 p.m.
Present:
Joe Boss
Dick Millet
Philip DeAndrade
Steven Moss
Malik Looper
Karen Pierce
2. APPROVAL OF MINUTES
The minutes of the meeting of June 25, 2009 were approved as written.
3. IMPLICATIONS OF THE CCSF/MIRANT AGREEMENT
Theresa Mueller, Deputy City Attorney: Mirant has agreed to permanently close Potrero Power Plant as soon as it’s not needed for reliability and has agreed to actively support the City’s efforts to convince the ISO that plant is not needed for reliability.
Under agreement Mirant will, once settlement is approved and injunction related to the UMB ordinance is approved, Mirant will pay the City $1 million for neighborhood improvements and $100k to cover some of City’s costs of entering the agreement.
Agreement assumes that plant will be closed by end of 2010. If it is not closed by June, 2011, Mirant will make another payment of $100k to the City to be used for same neighborhood purposes and will pay amounts payments to City for each year that Unit 3 continues to operate after that time.
The City and Mirant will ask the court to approve an injunction related to the lawsuit the City brought a few months ago on the UMBs on the site; injunction assumes that Mirant will keep the buildings in safe condition. As long as they are safe, the City will otherwise not enforce the ordinance.
Mirant will not take any actions to prolong the life of the plant and will support going forward restrictions on the site that will prevent use of that site for fossil fuel generation.
c. Mirant/Sam Lauter, consultant to Mirant: agreement not approved yet. Mirant will not pursue RMR after 2010. Assuming that agreement will be approved, Mirant is prepared to step aside in support of the closure once ISO rules that plant is not needed for reliability.
4. CALIFORNIA INDEPENDENT SYSTEM OPERATOR (ISO) HEARING OF 9/12/09 CONTINUING OPERATION OF POTRERO PLANT THROUGH 2010
Manuel Ramirez, PUC: attended ISO Board of Governors hearing on 9/11/09 whereby Board took up staff recommendation to extend to extend RMR contracts throughout California; including the Potrero Power
Plant, Units 3, 4, 5 and 6. The staff presentation focused on Potrero; at hearing, Mr. Ramirez conveyed
City’s position that at a minimum, Unit 3 did not need to be included for 2010. If ISO included it, City looking to ISO to exercise discretion to include provisions in contract to shut down Unit 3 as soon as Transbay Cable (“TBC”) comes online. Staff presentation clear that commitments had been made to shut down Unit 3.
ISO Board discussed city’s quantification of the 25MW gap that had been identified for 2010. Gap became apparent after both TBC came on line and the recabling to Hunters Point, Bayshore, Potrero cable that PG&E presently implementing to be completed in October, 2010. Per CAISO, 25MW gap does not occur until October, 2010 when PG&E’s recabling projects are completed. Per city’s analysis, 25MW gap occurs after the TBC complete.
5. PRESENTATION FROM PUC RE ROCKY MOUNTAIN INSTITUTE REPORT: SCOPE AND BASELINE FUNCTIONS
Mr. Ramirez PUC has finally has RMI contract in place; introduced RMI consultant Katie Wong, RMI, project manager for updated Electricity Resource Plant.
Ms. Wong: RMI is studying current CO2 emissions trajectory in SF out to 2030, developing the base case emissions profile for the city. Once base case trajectory identified, assess what gap is between where city lands and where City wants to go
RMI looking at energy resources on both supply and demand side: efficiency, demand/response, renewable sources of energy; identifying what those resources are and coming up with estimate for what the potential is for each of those resources. Will study alternative trajectories through which the City can reach its goals in 2030. Hope to complete project in five months.
6. ENERGY ALTERNATIVES: INTRODUCTION OF POWERGETICS AND NRG
Manuel Ramirez: anticipating Potrero Plant closure, City is looking into alternative energy sources. Powergetics has sought stimulus funds as part of Smart Grid investment grant opportunities and went to PUC to see a partnership possible.
a. Stacy Reineccius, Powergetics: focused on doing distributed energy storage systems; can stand alone or can integrate with other renewable energy sources. When company became aware of the potential gap, it submitted a Dept. of Energy grant application. PUC supports company’s work.
b. Gordon Judd, Director, Business Development NRG Energy: NRG is an independent power producer; power plants across country, approximately 24k MW. NRG Thermal Group in SF has downtown steam system, a central utility plant that provides steam for 180 buildings in downtown SF. NRG is specifically interested in looking at 25MW deficit. Promoting NRG’s development of cogeneration in SF. Has identified 60-80MW available to be developed in SF. Can resolve deficit with six projects, 2-3 of which can provide over 50MW projects. Speaking with PUC to identify locations where the cogeneration opportunities are. Will return to continue presentation..
7. ADJOURNMENT
The meeting was adjourned at 6:20 pm.
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