Committee forwards ordinance to renew Clean Power SF credit facility authority up to $150M

The Budget and Finance Committee on Jan. 24 heard from Capital Finance staff at the San Francisco Public Utilities Commission about an ordinance that would amend Ordinance 8-18 to authorize the SFPUC general manager to enter into amendments, extensions, or replacements to a bank credit facility for Clean Power SF (the city’s community choice aggregation program).

Nikolai Sklaroff, capital finance staff for SFPUC, explained the original authority (authorized in 2018) and said the proposed ordinance renews authority for up to $150,000,000 for additional 10-year terms. He described the facility as a commonly used liquidity backstop (letters of credit and bank agreements) that reduces the need to post cash collateral to counterparties and helps Clean Power SF meet CPUC financial-security requirements if a community-choice aggregator were to cease operations.

Sklaroff said the enterprise previously used a JPMorgan facility and obtained strong credit ratings that reduced reliance on large facilities but that the CPUC’s evolving security requirements and recent regional CCA failures mean larger facilities could be needed. He emphasized the authorization is for the manager to enter into agreements as needed; the actual facility draws and sizes will be determined operationally.

Supervisors expressed support for Clean Power SF’s role in local decarbonization and moved the ordinance to the full Board with a positive recommendation. There were no public speakers on this item.

Votes and outcome: Committee voted to forward the ordinance to the full Board with a positive recommendation (roll call recorded three ayes).