Committee approves $12 million release for SFPUC Transmission Lines 7–8 upgrade

The Budget and Finance Committee on July 27 declared the release of $12,000,000 in mitigation reserve funds to the San Francisco Public Utilities Commission for the Transmission Lines 7–8 upgrade project and filed the hearing, forwarding the matter with a positive recommendation to the full Board.

The funds are mitigation payments that developers pay when new generation projects affect SFPUC energy assets, not city general or ratepayer funds. Margaret Hannaford, division manager for Hetch Hetchy Water and Power, said the total project budget is approximately $37,970,000, with about $33.3 million expected from mitigation payments (roughly $20.86 million already received) and the remainder funded through Hetch Hetchy capital and bonds. Hannaford said the upgrades will mitigate interconnection impacts by modifying existing towers and reconducting affected lines so the grid can safely accommodate new generation.

Nick Menard of the Budget and Legislative Analyst’s office recommended approval, noting the BLA report shows the project budget and endorses the release. Hannaford also said the SFPUC commission awarded contract HHD-1007 to Wilson Utility Construction Company for $23,980,141 to perform construction work.

A caller identified in the record as Francisco DeCasa asked whether the transmission lines would be placed underground given wildfire risks and whether the BLA had considered undergrounding when reviewing the request. The caller also expressed distrust of the SFPUC based on prior ethics concerns. Hannaford and the BLA’s presentation did not commit to undergrounding; the committee’s action at the hearing was limited to declaring the reserve release and filing the hearing.

After the presentation and public comment, Chair Hillary Ronan declared the motion to release the funds. A roll call vote recorded three ayes and the committee’s action carried.

The committee’s declaration releases $12,000,000 from the committee reserve to the SFPUC for the Transmission Lines 7–8 upgrade project; the item will be forwarded to the full Board for final consideration. The hearing record and BLA report remain the primary sources for technical, cost, and schedule details.