Clean Power SF proposes community food‑services efficiency program and rate changes; LAFCO approves MOU and budget, advances public‑bank/MFC study

Michael Himes, deputy assistant general manager responsible for Clean Power SF at the San Francisco Public Utilities Commission, briefed the LAFCO commission on two items: a proposed community food‑services energy efficiency program and Clean Power SF’s generation-rate setting work.

Himes said the proposed food‑services program is structured as a pay‑for‑performance model to serve restaurants, grocery and corner stores, food banks and similar entities that historically have been underserved by efficiency programs. He said the California Public Utilities Commission approved about $4,500,000 in public‑purpose funds for Clean Power SF to operate that program, which will contract with an energy‑services company to perform free site assessments and install efficient refrigeration, induction stoves, lighting and other measures at no upfront cost to participating customers.

On rates, Himes summarized Clean Power SF’s 2021 cost‑of‑service study and explained that staff propose setting generation rates annually to manage volatility and affordability. He said, "residential customers will be seeing on average about a 6% bill increase, but will continue to save approximately 3 percent or $3 a month relative to PG and E's service." Himes said the proposed rates will be presented to the SFPUC on May 9 and then to the Board of Supervisors with a goal of an effective date of July 1.

Executive Officer Jeremy Pollock presented amendments to a proposed LAFCO–SFPUC memorandum of understanding (MOU). Pollock summarized three key edits requested by SFPUC staff: a reduced MOU total (from $800,000 to about $730,000), revised carryover language requiring SFPUC to notify LAFCO if it does not recommend carryover of unused funds so LAFCO can seek restoration during the city budget process, and a narrowed reimbursable scope that removes LAFCO oversight of Clean Power SF (that oversight would remain permitted but funded from LAFCO’s general fund). Pollock said the MOU funds would support five special studies (including green‑bank financing and natural gas decommissioning studies) and that the budget also reflects additional costs such as higher SFGovTV fees and an internal policy analyst reclassification.

On the Reinvestment Working Group and public‑bank/MFC work, staff and commissioners discussed a consultant model that proposes a $40,000,000 initial capitalization for a municipal finance corporation (MFC) with participation‑lending to support affordable housing, green energy projects and small businesses. Commissioners emphasized aligning green standards and labor standards with city policy and asked staff to pursue green‑bank study work to leverage Inflation Reduction Act and other federal funding opportunities.

After public comment, the commission approved the revised MOU and the proposed budget/work plan (items 6 and 7) and continued item 8 (executive officer report) to the next meeting. Chair Connie Chan moved the motion, Commissioner Steen Preston seconded, and the clerk recorded a unanimous roll‑call approval for the items acted on at this meeting.

Public commenters urged LAFCO to consider revenue‑bond options and to watch AB 538 at the state level; a remote commenter (Eric Brooks) recommended LAFCO use reinvestment tools to coordinate citywide deployment of VPPs and related investments.