SFPUC proposes new cost-based rates for Clean Power SF to enhance financial stability

San Francisco's Clean Power SF program is set to implement a significant rate decrease for its customers, marking a pivotal shift in how the city manages its energy pricing. During a recent government meeting, Mike Himes, director of the Clean Power Asset program, announced that the new rates proposal, which will be submitted for approval in early May, aims to decouple Clean Power SF rates from those of Pacific Gas and Electric (PG&E). This change is designed to enhance affordability and predictability for residents while supporting the city’s climate action goals.

The proposed rate structure will allow Clean Power SF to establish its own rates based on operational costs rather than following PG&E's fluctuating pricing. This is a crucial step for the program, which has historically aligned its rates with PG&E to maintain competitiveness. Himes emphasized that the new approach reflects the agency's commitment to financial stability and environmental sustainability, ensuring that funds collected from customers are reinvested into local renewable energy projects.

Erin Franks, the SFPUC rates administrator, elaborated on the rate study process, which has been ongoing since November 2020. The study, conducted by an independent consultant, aims to provide a transparent and equitable rate-setting framework. The proposed rates will decrease the average Clean Power SF generation charge from approximately $36 to $33 per month for residential customers, translating to about $3 in monthly savings compared to PG&E.

The meeting also highlighted the importance of public engagement in the rate-setting process. Franks noted that the agency encourages feedback from the community to ensure that the rates reflect the needs and priorities of San Francisco residents. Additionally, the Clean Power SF program will continue to offer various rate options, including discounts for low-income customers and incentives for electric vehicle charging.

Public comments during the meeting underscored the urgency for more robust electrification and decarbonization initiatives. Several residents expressed concerns about the need for Clean Power SF to take a more proactive role in supporting building electrification and developing comprehensive incentive programs. They urged the commission to prioritize these efforts in the upcoming budget discussions.

As the city moves forward with the proposed rate changes, stakeholders are optimistic that this new direction will not only provide immediate financial relief to customers but also strengthen San Francisco's commitment to a sustainable energy future. The commission is expected to review and potentially adopt the new rates on May 10, with implementation slated for July 1.