MINUTES
of the
POTRERO POWER PLANT CITIZENS ADVISORY TASK FORCE
Thursday, January 30, 2003
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 4:10 p.m.
Present: John Borg Babette Drefke
Absent: Bob Boileau
2. APPROVAL OF THE MINUTES
The minutes of the meeting of October 24, 2002 were approved as written.
3. NEW BUSINESS
Chair DeAndrade asked John Borg to report on a forum in which he participated sponsored by the San Francisco Neighborhood Association on public power in SF and the status of the Mirant application to the CEC to expand the Potrero Power Plant capability.
The Neighborhood Association invited Mr. Borg, along with Ed Smeloff, Cal Broomhead and representatives from Mirant and the electrical workers labor union. Mirant reported that the application was sailing through the process and that it would be approved. Mr. Borg spoke as a member of the Task Force and an intervener. Expressed TF's concerns re reliability, plant design, single fault system, loss of historic and cultural resources, once-through cooling system, recommendation against the Mirant proposal and support of the City's Energy Resource Plan. Mark Harrar of Mirant was there and reported that Mirant planned to shut down Unit 3 and only keep it running 10% of time for interim period.
Chair DeAndrade welcomed new member Karen Pierce to the Task Force. He also welcomed Supervisor Maxwell's new aide, Marti Paschal.
4. REPORT FROM THE CITY ATTORNEY'S OFFICE
Deputy City Attorney Jackie Minor provided an update on the Potrero Unit 7 proceedings that are pending before the CEC. Mirant acts as if it fully expects to proceed with the licensing, get a license and build the power plant. The CEC Commissioners have been unequivocal in explaining to the all attorneys that it is their charge to proceed with the licensing proceedings.
The City has still not taken a policy position with respect to Unit 7 and the mode of cooling the power plant (bay-cooled or reclaimed water). The CEC has the final decision, regardless of the positions taken by the Mayor and the Board of Supervisors.
City is assuming that air quality, public health and environmental justice are the next three topic areas to be taken up in late February.
Mirant stated it will know in March whether they will file an amendment to the application to change the cooling system.
5. REPORT FROM ED SMELOFF, PUBLIC UTILITIES COMMISSION, RE WILLIAMS SETTLEMENT
City has adopted an ordinance settling a legal dispute with the Williams Corporation; as part of that settlement, the City obtained, free and clear, title to four gas-fired, never used, state of the art combustion turbines, manufactured by General Electric and still carrying warranties. They are aero-derivative, originally designed for 747s and revised for land and marine uses and for power plant production and made more robust so that they can operate more hours. In addition to getting title to the turbines, PUC has been able to hire a manager for power plant development, Ralph Hollenbacher. He will be the point person from the PUC in the siting of power plants. Russell Step, PUC engineer will provide assistance to Hollenbacher. Goal is to shut down the Hunters Point Plant in 2005.
PUC has had the Board of Supervisors enter into a power purchase agreement with the California Department of Water Resources. Agreement makes it financially acceptable for the City to move forward in developing these power plants. That agreement will give the City the capability to issue revenue bonds or other forms of financing so that the plants can be built.
City will own plants free and clear after ten years. Will be operated as reliability units, not a merchant power plant like Potrero 7. ISO has indicated they would like one of the plants operating around the clock. Other three plants would be stand-by. Attraction is that the plants could be fully operational in 10 minutes. City will have in its discretion the ability to terminate the agreement once the plants are developed with five years notice. We could then use the power for other purposes.
Siting of these plants will be necessary to shut down Hunters Point. Waiting for statement from ISO as to what would be required for the HP shutdown.
There is an absolute need to site a new 115,000 volt cable underground between the HP and Potrero switchyard. The ISO would then make the determination that it would not renew the RNR contract with PG&E for the Hunters Point plant.
In preliminary stage for identifying sites. Agreement with DWR and the state requires that SF has site control by the end of 2003 or SF can lose these turbines. (Control-equivalent of an option to purchase or lease in the long-term, a parcel of property sufficient to site the plants. One site is at 5th and Jessie, location of a steam plant. Another site is a substation at First and Embarcadero. Third site is near existing Potrero plant, eight acres, presently controlled by the Port. Can site three of the turbines there.
6. REPORT FROM DEPUTY CITY ATTORNEY JOE COMO RE JEFFERSON MARTIN TRANSMISSION PROJECT
The new transmission line will traverse areas outside the City from the Jefferson substation near Highway 280 and Canada Road to the Martin substation. Arose from the 1998 outage which prompted an investigation into the reliability of the entire PG&E system, both transmission and generation. Stakeholders decided this project was needed to reinforce the frail cable system into San Francisco. Prehearing conference was convened in order to determine what the schedule of the proceeding will be in addition to what issues will be addressed-need of project and the environmental review. CPUC is preparing an EIR and seeking input from the public.
7. PUBLIC COMMENT
Cal Broomhead, Department of the Environment, reported on applications to state for a grant from Public Goods Charge Fund (itself funded from a portion of the PG&E bill) to meet goals of Electricity Resource Plan. Goal is to reduce peak load by 16 megawatts. In October, an administrative law judge ruled that no third party could apply for funds; that all funds would be given to the utilities to operate their programs. City objected to process but began to work with PG&E. Meeting with PG&E weekly to begin to develop an energy efficiency program whereby the City would get some funds for marketing and PG&E would operate their programs, tweaked to serve SF's needs. Plan to set aside $15 million to assist SF implement programs.
The Task Force agreed that the March meeting should be a public meeting held in the Potrero. Mr. DeAndrade will find the place and time and report back at the February meeting.
8. ADJOURNMENT
The meeting was adjourned at 6:20 p.m.
