San Francisco approves GE contract for Moccasin Powerhouse generator rehabilitation
May 26, 2021 | San Francisco County, California
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The San Francisco County government meeting on July 4, 2025, focused on a critical resolution regarding the Moccasin Powerhouse Generator Rehabilitation Project. The San Francisco Public Utilities Commission (SFPUC) presented a request to approve a negotiated comparative fault indemnification provision in its design-build construction contract with General Electric Renewable U.S. LLC.
Katie Miller, the director of water capital programs for the SFPUC, outlined the importance of the Moccasin Powerhouse, which plays a vital role in supplying water and hydroelectric power to over 2.7 million customers in the Bay Area. The facility, which has been operational since 1969, houses generator units that are now 20 years beyond their life expectancy. Failure of these units could severely disrupt water delivery and result in significant financial losses, estimated at $24 million annually.
The proposed contract aims to replace critical components of the aging generators, ensuring continued operation and minimizing service interruptions. Miller emphasized the urgency of the project, stating that any delays in contract approval could postpone construction by a year, increasing the risk of facility failure.
The SFPUC has faced challenges in securing qualified contractors due to strict indemnification requirements. After extensive negotiations, GE was selected for its favorable terms, including a comparative fault indemnity clause, which limits liability based on the degree of fault. This approach was deemed necessary to attract qualified contractors while still protecting the city's interests.
The committee was urged to approve the resolution to facilitate the timely commencement of the rehabilitation project, which is essential for maintaining the reliability of the water supply and hydroelectric power for San Francisco and surrounding areas. The meeting concluded with an invitation for questions from committee members, highlighting the collaborative effort to address the city's infrastructure needs.
Katie Miller, the director of water capital programs for the SFPUC, outlined the importance of the Moccasin Powerhouse, which plays a vital role in supplying water and hydroelectric power to over 2.7 million customers in the Bay Area. The facility, which has been operational since 1969, houses generator units that are now 20 years beyond their life expectancy. Failure of these units could severely disrupt water delivery and result in significant financial losses, estimated at $24 million annually.
The proposed contract aims to replace critical components of the aging generators, ensuring continued operation and minimizing service interruptions. Miller emphasized the urgency of the project, stating that any delays in contract approval could postpone construction by a year, increasing the risk of facility failure.
The SFPUC has faced challenges in securing qualified contractors due to strict indemnification requirements. After extensive negotiations, GE was selected for its favorable terms, including a comparative fault indemnity clause, which limits liability based on the degree of fault. This approach was deemed necessary to attract qualified contractors while still protecting the city's interests.
The committee was urged to approve the resolution to facilitate the timely commencement of the rehabilitation project, which is essential for maintaining the reliability of the water supply and hydroelectric power for San Francisco and surrounding areas. The meeting concluded with an invitation for questions from committee members, highlighting the collaborative effort to address the city's infrastructure needs.
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