May 27, 2004

MINUTES
of the
POWER PLANT TASK FORCE

May 27, 2004 at 4:00 p.m.

City Hall
1 Dr. Carlton B. Goodlett Place, Room 408

1. CALL TO ORDER AND ROLL CALL

The meeting was called to order by Chair Philip DeAndrade at 4:15 p.m.

2. APPROVAL OF THE MINUTES

The minutes of the last meeting, November 13, 2003, were approved as written.

3. REPORT FROM THE CITY ATTORNEY'S OFFICE

Deputy City Attorney Jeanne Sole appeared to report of the status of the City's application for certification of the four combustion turbines, "peakers." Application was filed March 17, 2003 and CEC decided that the application was "data adequate" on April 21, 2003 and that commences the process. A public meeting is scheduled for June 15^th. CEC produce list of issues and a schedule on June 3 and then the data request stage begins. This is a 12-month process. City is trying to get confirmation from the ISO that three peakers north of Martin would be sufficient to shut down Hunters Point.

4. REPORT FROM MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT RE SAN FRANCISCO ELECTRIC RELIABILITY PROJECT (SITTING OF THE COMBUSTION TURBINES) JESSE BLOUT, DIRECTOR/JULIE LABONTE/PUC

Mr. Blout: Mayor took over project from the PUC, due to complexity on many levels. Interested in increasing public input on sitting of peakers. Reducing the City's dependence on the old generating units at Hunters Point and Potrero are the central goals of this project. Looking at utilizing a state contract (power purchasing agreement), which provides ability to finance all the installation costs associated with development of the CTs and get paid back over the course of 10 years.; so contract would be for ten years with the state.

Believes the Mayor's goals are: close Hunters Point, Units 1 and 4; close Units 3, 4, 5 and 6 at Potrero; run the CTs as little as possible.

Ms. LaBonte: is manager of PUC Infrastructure Development Section. In late March

Mayor's Office asked her to assume project management responsibilities for the San Francisco Electric Reliability Plan

The Plan outlines strategy to close Hunters Point Power Plant and other in-City generation; also involves development of an operationally-flexible natural gas-fired generating resources in combination with the development of several other energy resources. All part of a multi-faceted, incremental approach that will ensure reliable, affordable, sustainable and clean source of electricity for the City.

The ISO has said that Hunters Point Power Plant could be closed if we sited three CTs in the City and completed a number of transmission system projects. With Jefferson Martin, City's goal is to close both units at Hunters Point and close the peakers at Potrero or close Unit 3 at Potrero.

Will be important to justify the costs in order to be reimbursed by the state. Otherwise the City will have to pay for the project.

Second phase of sitting process will consist of a more detailed alternative evaluation and environmental review of alternative sites. Portrero sites will be analyzed and reviewed as part of a CEC siting process, but the airport site will be evaluated and reviewed through a CEQA process managed by the SF Planning Department.

Ms. LaBonte also discussed the plans for mitigations and offsets. Task Force members questioned her re mitigations and air quality issues

Re mitigations and community benefits, public will be invited to weigh in; will seek endorsement of PUC and Department of the Environment ; hoping to finalize the mitigation package by September..

5. MODIFICATION AND REORGANIZATION OF THE TASK FORCE

The members agreed that the Task Force would hold a special meeting on June 10^th to discuss its reorganization and hold election of officers.

6. PUBLIC COMMENT

Greg Asay of Supervisor Maxwell's office stated that there were unfilled seats on the Task Force and that his office was considering amending the legislation to add more seats for better representation of constituencies affected by power issues.

7. ADJOURNMENT

The meeting was adjourned at 6:15 p.m.