Committee approves release of roughly $6.9M in mitigation funds for PUC transmission line upgrades

The Budget & Finance Committee voted to release about $6.88 million in mitigation payments held in committee reserve to the San Francisco Public Utilities Commission to fund the Transmission Lines 7/8 upgrade project. Margaret Hannaford, PUC manager for Hetch Hetchy Water Division, said the total project is estimated at $37.97 million, with the PUC anticipating roughly $33.3 million in mitigation payments tied to interconnection impacts from new renewable generation projects.

Hannaford said the PUC has signed mitigation agreements with 15 developers totaling about $29.12 million and received $27.43 million in payments and letters of credit; five agreements remain under negotiation with an expected value of about $4.5 million. Construction began in September 2022 and is scheduled for completion in July 2024, with contract closeout by December 2024. BLA recommended approval after outlining the project and funding sources tied to California Independent System Operator mitigation requirements.

A remote public commenter supported release of the funds. The committee approved the release and filed the hearing.

Next steps:Released mitigation payments will reimburse the Hetch Hetchy capital program as construction proceeds; PUC expects to complete construction July 2024 and contract closeout by December 2024.