March 29, 2007

MINUTES

of the

POWER PLANT TASK FORCE

Thursday, March 29, 2007 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 4:20 p.m.

2. APPROVAL OF THE MINUTES
By motion of Ms. Pierce and second by Mr. Moss, the Minutes of the meeting of March 1, 2007 were unanimously approved as written.

3. SITING OF THE COMBUSTION TURBINE GENERATORS (CTs)
Chair DeAndrade read a draft of the Task Force resolution on the siting of the CTs. Karen Kubick, PUC, suggested wording. Jesse Blout, MOEWD volunteered to help finalize wording o the resolution.
Jeffrey Russell, President of Mirant California, LLC and Mirant Potrero LLC: Mirant's willingness to agree to shut down the Potrero Plant was conditioned upon coming to an acceptable agreement with City in terms of getting to a plan for reuse of the site. Also, Mirant did not agree that removal of the RMR contract was the hurdle for it to shut plant down. That hurdle is when the plant is no longer needed for reliability. What Mirant is looking for in that respect is a signed document from the ISO, which will be forwarded to the Federal Energy Regulatory Commission (FERC) for its sign-off. But there needs to be an affirmative statement from the ISO, not just removal of the RMR.
Jesse Blout, MOEWD: Mayor' Office doing two principal things to ensure that Potrero shut down. First, moving forward with CT project and working hard to complete agreements with Dept. of Water Resources for the long term water purchase agreement that would help finance the project. Also moving forward with the EPC contract and lining up all ducks with the financing so that when negotiations finalized with DWR, will be in position to sell bonds and build the project.

Mayor's Office is in the process of negotiating an agreement with Mirant that contemplates what we would do as a city within our control now in control in exchange for a binding commitment from them to shut down all four units at Potrero once they are no longer needed for reliability.

Karen Kubick, PUC: anticipate that the design and procurement process will begin in the summer; groundbreaking for construction should occur at beginning of calendar year. Process needs to go from PUC to BOS committees to full Board for approvals.

Deputy City Attorney Theresa Mueller offered the services of the City Attorney's Office to help draft the Task Force resolution regarding the CTs. Ms. Mueller read the Task Force resolution and indicated where she might wordsmith certain sections. Mr. Boss moved to ask the City Attorney to reword the draft resolution; Mr. Moss seconded the motion that was approved by a 4 to 1 vote with Ms. Pierce opposed.

4. TASK FORCE POSITION ON THE TRANSBAY CABLE
Chair DeAndrade reported that he sent the letter to the Port Commission that the Task Force endorsed, reiterating that things are moving too fast, that the Port was moving too fast to approve certain leases, that the Task Force wanted to hear from the SFPUC, concerned about the expense, that it would deflect development of renewable resources, that there was not enough information to make an informed decision. Port did not want to consider merits of project but leave that for SFPUC and Board of Supervisors. What Port Commission wanted to do was negotiate the terms and rights of way and benefit package should the transbay cable be approved. Letter was also sent to the BOS.

Jesse Blout, affirmed Chair DeAndrade's explanation of the Port's position and elaborated on the benefits package, congratulating Brad Benson of the Port for the negotiating. He also mentioned that the Mayor's Office is looking to the PUC to update the Electricity Resource Plan.

5. ADJOURNMENT
The meeting was adjourned at 5:25 p.m.