MINUTES
of the
POTRERO POWER PLANT CITIZENS ADVISORY TASK FORCE
Thursday, March 20, 2003
Potrero Neighborhood House
953 De Haro Street, San Francisco
1. CALL TO ORDER AND ROLL CALL
The meeting was called to order by Chair Philip DeAndrade at 6:45 p.m.
Present: Bob Boileau Philip DeAndrade
John Borg Babette Drefke
Joe Boss Steven Moss
Absent: Richard Millet Claude Wilson
2. APPROVAL OF THE MINUTES
The minutes of the meeting of February 27, 2003 were approved as written
3. UPDATE ON THE POTRERO POWER PLANT
Mr. DeAndrade gave a synopsis of the Mirant application process before the CEC, and reported that the Task Force voted to oppose the siting of the Mirant plant at the Potrero site. He explained that the Task Force voted at its last meeting to ask the Board of Supervisors and the Mayor to also oppose the Mirant plant.
Ed Smeloff, Deputy Director for energy of the Public Utilities Commission appeared to report on implementation of the Electricity Resource Plan, the status of Potrero Unit 3 and the draft selection criteria for siting the four combustion turbines that the City owns and the latest reliability study from the ISO.
Unanimously approved by the Board of Supervisors in December. It is a long-term vision of where we want our electricity resources to be. Plan adopted a number of broad policy goals to guide the City and Dept. of the Environment in making decisions about specific resources to be put in place. It also identified the City's vulnerabilities in terms of its electric infrastructure.
Plan has acted as a catalyst for action to be taken by state agencies, e.g., state PUC, the Energy Commission, the Power Authority. Plan also discusses specific actions to be taken to shut down Hunters Point Plant ("HP")by 2005. The two key assumptions were that we wanted to implement the agreement the Mayor signed in 1998 to shut down HP. Second goal was to retire the Potrero 3 as soon as it is no longer needed for reliabil ity purposes.
To shut down HP, was necessary to site three gas turbines, peaking power plants, easy to shut down. Required 135 MWs. Also had a need for one plant that would be online all the time-cogeneration plant. Also committed to do small scale plants-distributed generation to be connected to lower voltage lines in residential neighborhoods. There are a number of smaller plants on the drawing board. City is doing first big solar project at Moscone Convention Center.
Plan talks about doing energy efficiency-lowering the load. Plan also calls for construction of new power lines. Once HP is shut down, we will need to balance the City system and distribute power through the HP switchyard. Will need to build a new cable between the Potrero switchyard and the HP switchyard.
PUC also trying to upgrade lines coming into the City to give 100 additional megawatts.
Plans to build a new high-voltage line, along BART, one more cogeneration plant and do some energy efficiency may enable City to shut down Potrero Unit 3. If possible, would lower emissions of oxides of nitrogen, major cause of smog. Would also reduce small particulates, cause of respiratory ailments.
As part of settlement with Williams Corporation, Oklahoma, City now owns title to four small gas turbines, 45 MWs. We now have a 10-year power sales agreement with the state. State has agreed to pay for the cost of constructing the plant, maintaining it and the cost of the fuel. City will own after 10 years.
PUC assumed that Mirant would be able to operate Unit 3 in 2004 under its current permit. They own fleet of plants on Pittsburg, Antioch and here. May have to use the peakers which will create more emissions. This will give City some leverage. If we site the combustion turbines downtown, and we run Unit 3 at its minimum load, we can run the turbines and keep emissions down.
Must make sure that the siting helps shut down HP. Must determine that the site improves air quality. Want to ensure that siting helps further aims of Resource Plan and that the siting fits in with the Master Plan and zoning requirements. Turbines will be used as peakers. Advantage is that these new plants have emission controls. Can also turn on and off quickly. Cleaner and more efficient than present peakers which use diesel fuel.
Looks at siting the turbines, transmission resources, generation resources, Jefferson Martin transmission line to increase the load.
Mr. Smeloff doubts that Mirant will ever site the plant. Will either build a combined cycle plant or the turbines will be used but not both.
a. Public comment
1. Greg Karras, Communities for a Better Environment, an intervener in the Mirant application process. CBE opposes the siting of Potrero Unit 7 and believes that HP should shut down as soon as possible.
2. Also commenting were Dave McKee, CBE, Peter Walbridge, Mark Lory and Jim Beals, residents
4. TASK FORCE POSITION RE RETROFIT OF UNIT 3
Mr Moss expressed outrage that the community was told there would be a $30 retrofit at Unit 3without any public input or public knowledge.
Mr Boss moved that Mr. Moss and the Chaire draft a letter to the ISO on behalf of the Task Force to express outrage that the ISO skipped ober the City and City departments, and asking the ISO to respond regarding the process. Ms. Drefke seconded the motion and it was passed unanimously.
5. ADJOURNMENT
The meeting was adjourned at 9:05 p.m.
