San Francisco moves to expand public power services amid PG and E challenges

San Francisco is taking significant steps toward expanding its public power initiatives, as discussed in a recent city meeting led by the San Francisco Public Utilities Commission (SFPUC). The meeting featured Barbara Hale, the assistant general manager for power, who outlined the city's ambitious plans to enhance its public power services and potentially acquire the local distribution assets currently owned by Pacific Gas and Electric Company (PG&E).

The SFPUC operates Hetch Hetchy Power and the Clean Power SF program, which together supply over 70% of the electricity consumed in San Francisco. Hale emphasized the importance of transitioning to an all-electric city to meet climate goals, while also addressing the challenges of maintaining a resilient electricity distribution system. The city is exploring the acquisition of PG&E's infrastructure, which includes poles, wires, and underground facilities, to gain greater control over its energy supply and distribution.

Hale highlighted the benefits of public power, including lower rates for residents—averaging 11% less than those served by investor-owned utilities—and improved reliability. Publicly owned utilities are accountable to local officials and can prioritize community needs without the pressure of shareholder profits. This local control is seen as crucial for advancing San Francisco's climate action goals and enhancing energy efficiency programs.

The city has faced obstacles with PG&E, including delays and additional costs imposed on public projects due to the utility's requirements. These challenges have prompted city leaders to pursue the acquisition of PG&E's assets more aggressively. In 2019, the city made two offers to purchase these assets, which PG&E rejected, claiming the offers were below market value. The city has since petitioned the California Public Utilities Commission to set a fair value for the assets, a process expected to take 18 to 24 months.

As the city moves forward, it is encouraging community engagement and input on public power expansion. The SFPUC aims to ensure that the transition to a more robust public power system not only meets the energy needs of San Francisco residents but also aligns with the city's long-term sustainability goals. The next steps involve ongoing discussions with PG&E and preparing for the upcoming hearings with the California Public Utilities Commission.