Committee narrows PUC contracting delegation, asks for quarterly reporting and shorter term

The committee considered an ordinance (Item 6) that would let the San Francisco Public Utilities Commission (PUC) general manager execute certain standardized power purchase and sale contracts — including some with terms longer than 10 years or costs greater than $10 million — up to specified annual caps. PUC staff argued the delegation was needed to transact at a commercial pace in volatile wholesale electricity markets and to obtain better prices that protect ratepayers.

PUC Assistant General Manager Barbara Hale told supervisors the authority would apply to commonly used industry form contracts and to new products such as standalone energy storage. She said the delegation includes limits (for example annual spending caps) and that it builds on prior delegations the Board has granted for commodity‑style transactions.

Supervisors expressed concerns about ceding the Board’s charter authority for long‑term or infrastructure projects that can affect communities and land use. Supervisor Chan proposed two substantive changes: (1) require quarterly reporting to the Board (PUC already provides quarterly reports to its commission), and (2) shorten the delegation period from five to three years so the Board can re‑evaluate. Several members also asked for language ensuring projects on city‑owned land or those with substantial community impacts would come to the Board. PUC staff agreed to work with the City Attorney to incorporate targeted amendments; the committee voted to send the ordinance as amended to the full Board.

The committee stressed it supports the PUC’s ability to act quickly in short procurement windows but asked that longer‑term infrastructure investments and projects on city land retain Board oversight and that the PUC provide transparent periodic reporting.