MINUTES
of the
POWER PLANT TASK FORCE
SPECIAL MEETING
August 5, 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.
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Present:
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John Borg
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Toby Levy
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Joe Boss
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Richard Millet
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Philip DeAndrade
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Karen Pierce
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Dana Lanza
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2. PRESENTATION RE TRANSBAY TRANSMISSION CABLE PROPOSAL
Mr. David Parquet of Babcock & Brown, a financing company presented his company's proposal to connect the PG&E substation in the City of Pittsburg to the substation at the Potrero Power Plant via a direct current cable under San Francisco Bay.
Had two public meetings: one at a PG&E-sponsored event on long-term grid planning; other meeting sponsored by the ISO, San Francisco stakeholders meeting.
Proposal is a high voltage, direct current (DC) transmission. SF needs generation and this is a very large load at the end of all the wires. What is needed to stabilize this is a generator, however, a DC acts like a generator. DC is hugely different than AC. If one end of the pipe near Pittsburg and the other in SF and turn the DC controls on, pull power out of Pittsburg and put it right in SF. Is like moving all the generators and all the generation in Pittsburg into SF without moving the generators to SF. So the function is performed without the consequences.
Mr. Parquet explained reasons why Pittsburg was chosen. Very strong substation, can easily handle several sizes, has a business solution. Babcock & Brown has entered into an arrangement with the City of Pittsburg in their capacity as a municipality, to basically perform the functions so that this process is not jurisdictional of the PUC.
Presently, this project is owned by a company set up by Babcock & Brown called Transbay Cable LLC. At commercial operation of this cable, B&B will turn all of the assets of the project over to Pittsburg in its capacity as a municipality; will turn all of the transmission rights over to the ISO; B&B will retain Transbay Cable LLC which will become a FERC regulated utility; and pursuant to the tariff that B&B will have approved at that time by the ISO, as well as with FERC, B&B will enjoy cost-based rate recovery.
Pittsburg will own the assets, the ISO will control the line, B&B will provide all of the funding for it and it will become a regulated utility.
B&B has chosen Siemens, a transmission distribution company and one of the most credit-worthy companies in the world to be the technology company; Pirelli will supply the cable.
In next couple of weeks, will issue the Notice of Preparation under the EIR. City of Pittsburg will be lead agency. Will not designate a site but will announce scoping meeting and lay out alternative sites. Will ask the public what it would like.
B&B's opinion that this project, if successful, will eliminate the RMR at Potrero. ISO as well as FERC will have to approve. Their study has shown that City can do without generation for a long time. Per Dep. City Attorney, ISO has no control over peakers, but has control of transmission.
Chair DeAndrade: asked clerk to invite ISO, City Attorney and representatives from Hetch Hetchy to hear about impact of transbay cable on peakers and SF energy needs. He also asked Mr. Parquet to come to the September 23rd regular Task Force meeting to discuss the cable project further.
3. TASK FORCE POSITION RE SITING OF CTs, OFFSETS AND MITIGATIONS
The Task Force continued discussion on its position regarding siting of the peakers. Mr. Boss moved to change language referring to three combustion turbines to four; Ms. Pierce seconded the motion. Mr. Millet moved a friendly amendment to use the words, "as many as four." Mr. Millet's motion passed unananimously. Members worked on the language of the draft.
4. ADJOURNMENT
The meeting was adjourned at 6:40 p.m.
