PG&E

Impertinent questions for the PG&E 3 supervisors

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Note: The Guardian and I were delighted, after fighting PG&E since 1969 to enforce the public power mandates of the federal Raker Act,  to see the SF Board of Supervisors finally start the process rolling on a veto-proof 8-3 vote. Even the San Francisco Chronicle, after all these decades of opposition to public power, noted in its Monday story by John Cote:

“The move would effectively end Pacific Gas & Electric Co.’s decades-long monopoly on the consumer power market in San Francisco, and it would lay the groundwork for the city to generate its own power in the future.

“Public power has long been a goal of major contingent on the city’s political left.  The contract approval comes eight years after the city began setting up a community choice aggregation program, which allows municipalities to choose alternativve energy providers.”

 Two of the PG&E 3 are my supervisors–Sup. Sean Elsbernd and Carmen Chiu. (I live in West Portal in Elsbernd’s district and  a few blocks from Chiu’s Sunset district.) Sup. Mark Farrell was the third PG&E vote.  I  was curious how in 2012,  after PG&E’s misbehavior in the San Bruno blast and after its corporate shenanigans in San Francisco, after all the work that has been done by public power advocates and the  San Francsico Public Utilities Commission on CCA,  could Elsbernd, Chiu and Farrell  vote with PG&E and against public/clean/renewable power. I sent them emails asking some Impertinent Questions. Farrell and Chiu didn’t reply. Elsbernd to his credit did.  Here is the back and forth: . 

B3 to Sup. Elsbernd,

As a constituent, I  am  curious why you voted last week  with PG&E and against clean energy and public power on the PG&E vote and didn’t say anything during the discussion.  I am also curious why, as a neighborhood supervisor, you seem to always vote with the Chamber of Commerce (l00 per cent, according to its last score card) and did so again  on this vote. On what major vote have you differed with the Chamber and PG&E?
I will run your answer on my blog.  Thanks,   b3
http://www.sfbg.com/bruce/2012/09/18/stop-presses-cleanpowersf-8-pge-3
Sean to B3

I opposed the proposal because I have a real concern about the potential for a number of our neighbors becoming unwilling customers of this program.  I said nothing because I believe Supervisor Farrell and Chu expressed the point quite well.
Perhaps the biggest issue on which I differed from the Chamber was Proposition A in 2007, the MTA set aside sponsored by Supervisor Peskin.  I played a large role in supporting that measure, while the Chamber opposed it.

I am curious – on what issues has the Bay Guardian differed from SEIU 1021?
B3 to Sean
 
Thanks, supervisor.  Many issues with the SEIU and labor, and many involving their support of what we call Manhattanization and the over building of projects. The Guardian is friendly to SEIU and labor, but we often differ on endorsements of candidates and propositions, as you can see from Wednesday’s edition.    b3
Sean to B3

Interesting.  I have never seen SEIU 1021 support controversial building proposals; I have, of course seen the Building Trades and other labor support for such construction, just have not see SEIU.  I’ll take your word for it.

B3 to Sean

Thanks, supervisor. I like your idea of the new Goat Hill Pizza in West Portal  bringing us together.

You have always answered my Impertinent Questions. I appreciate it.  I’ll miss you. Good luck. B3

Stop the presses: CleanPowerSF 8, PG&E 3

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Sometimes, the good guys (and gals) win.

And so, after the Guardian started the public power movement in 1969  with the pioneering Joe Neilands expose of the PG&E/Raker Act scandal, after three  initiative campaigns to kick PG&E put of City Hall and enforce the public power mandates of the federal Raker Act and bring our own Hetch Hetchy public power to our own people, after hundreds of people worked for years inside and outside City Hall for public power and clean energy,  the San Francisco Board of Supervisors voted 8-3 Tuesday  to formally launch a CleanPowerSF project that would for the first time challenge the decades-old power monopoly of the Pacific Gas & Electric Company.

It was a historic moment. And it was a historic veto proof vote that Ed Lee, the PG&E- friendly mayor, and his ally and mentor, former mayor Willie Brown, the unregistered $200,000 a year PG&E lobbyist, will have difficulty snuffing out this time around.

The CleanPowerSF 8 were Sups. David Campos, who sponsored the legislation, Scott Weiner, who cast the deciding swing vote, David Chiu, Eric Mar, Christina Olague, Jane Kim, Malia Cohen, and John Avalos, all of whom made helpful remarks during the debate. They also voted down an attempt by the PG&E bloc to continue the vote for a week and voted against crippling amendments.

The PG&E 3 were Sups.Mark Farrell and Carmen Chiu, who tried to dilute the legislation with the crippling amendments, and Sean Elsbernd, who was strangely silent during the debate. 

I use the phrase CleanPowerSF  8 and PG&E 3 to dramatize the crucial political point and toss in a bit of Guardian history on the story.  For years, as clean energy/public power proposals were routinely voted down as a result of PG&E political muscle and power lobbying, the Guardian would use variations of the phrase. PG&E l0, San Francisco l or whatever was the PG&E margin of victory. The phrase was accurate, pin-pointed the good and bad guys and gals, lifted our spirits, and sent the message that the battle was far from over.

The hero of the afternoon was Ed Harrington, the general manager of the San Francisco Public Utilities Commission who delayed his retirement to complete the project. He got a standing ovation after his testimony backing up his legislation and deft handling of  all questions.  As Campos said, Harrington’s legislation  was as “good as you are going to get.”  No one seriously questioned his plan, figures,  marketing strategy, or key argument that his plan was fiscally and environmentally sound.

PG&E was never mentioned during the discussion and it was difficult to determine its lobbying strategy. After the vote, I asked Eric Brooks, the crafty clean power leader at the meeting,  what happened to PG&E and  its strategy. He said that PG&E, after the San Bruno disaster and other notable mishaps, was not the monopoly power it once was and that perhaps the company had decided it would rather face the slower pace of  CleanPowerSF rather than another clean energy initiative it would have a good chance of losing 

Thanks and congratulations to the CleanPowerSF 8, David Campos, Scott Weiner, John Avalos, David Chiu, Eric Mar, Chritina Olague, Jane Kim, and Malia Cohen, who voted themselves into San Francisco history.  Five of them will face the electorate and PG&E in the November election (Campos, Avalos,  Chiu, Mar, and Olague.) and they acted and spoke as if voting for CleanPowerSF would be a significant advantage to their campaigns in their districts. And thanks and congratulatons to former Sup. Ross Mirkarimi, who carried the public power flag as the unpaid campaign manager during the first two unsuccessful public power campaigns and then carried the CCA plan inside City Hall during his seven years as supervisor.  When he was voted in as sheriff last November, he handed the CCA baton to Campos who pushed the proposal through with style and solid argument that the issue was choice and providing necessary competition to PG&E’s monopoly.

The vote to start public power in San Francisco comes none too soon. The tear-down-tne-Hetch Hetchy dam forces have put the nice-sounding Proposition F to study draining the Hetch Hetch reservoir.on the fall ballot. This is the first step toward tearing down the dam.  The problem for the city is that it could ultimately lose the dam, if it isn’t moving to public power, because the Raker Act mandates that San Francisco have a municipal  system to distribute public power to its residents and businesses because the act allowed San Francisco to dam Hetch Hetchy Valley in Yosemite National Park. The Guardian’s position is that the dam is in place and  should only be torn down after the city has real public power and is able to find and afford an adequate new source for the city’s water and power supply. And that, let me emphasize,  will be a massive undertaking involving billions of dollars and incredible political challenges.   .

Much more to come in this saga that never ends,  b3

Here is Guardian City Editor  Steve Jones’ account of the vote: : http://www.sfbg.com/politics/2012/09/18/historic-veto-proof-vote-launches-cleanpowersf

And some Guardian background on the PG&E/Raker Act Scandal in my advance story: http://www.sfbg.com/bruce/2012/09/17/historic-pgeclean-energy-vote-today

Historic, veto-proof vote launches CleanPowerSF

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The San Francisco Board of Supervisors today cast an historic vote that was more than a decade in the making, approving the CleanPowerSF program – which challenges PG&E’s monopoly by offering 100 percent renewable energy directly to city residents – on an 8-3 vote that would be enough to override an implied veto threat by Mayor Ed Lee.

The outcome was far from certain throughout the two-hour hearing as conservative Sups. Mark Farrell and Carmen Chu led efforts to undermine the program, which was the final work product of retiring San Francisco Public Utilities Commission Executive Director Ed Harrington, who previously served as the city’s controller for 17 years.

The pair of supervisors offered a series of amendments challenging the state requirement that city residents must proactively opt-out of such community choice aggregation (CCA) programs if they want to remain with PG&E, offering convoluted language that would have required people to opt-in to the program before its launch, and requiring that the $13 million in reserve funds from the SFPUC be covered entirely by CleanPowerSF customers, which could increase its rates.

“It looks like the amendments would be harmful to the success of the program,” Sup. Eric Mar observed, prompting Farrell and Chu to flash broad conspiratorial smiles at one another.

Sup. Scott Wiener, who was undecided and considered a key swing vote in reaching a veto-proof majority, said he also had concerns about the opt-out requirement and wanted to better understand how the amendments would work and whether they were legal. “For me, I’m not interested in putting any poison pills in here,” he said.

Wiener posed questions about the amendments to Farrell and to Harrington, who said it was possible for the SFPUC to have CleanPowerSF customers repay the initial allocation of reserve funds over time but that he wasn’t sure how the opt-in change would work without sabotaging the program.

“It harms the ability to have an intelligent conversation with people,” Harrington said, noting that rates are based on the number of customers in the program, so it would be nearly impossible to survey everyone’s potential interest without being able to tell them how their bills would be affected.

As it is, the SFPUC has already done extensive surveys of which neighborhoods and demographics are likely to be interested in taking part in CleanPowerSF, initially paying about $10 more per month for 100 percent renewable energy (PG&E’s portfolio includes less than 30 percent renewable). “We’ve done extensive surveys already,” Harrington said. Based on that research, the city is initially rolling out the program to less than a third of city residents, who will be repeatedly notified about how to opt-out, anticipating about 90,000 customers remain in the initial program. 

The program has been repeatedly tweaked over the last eight years that it’s been in development, during which time Marin County launched a successful version of the CCA concept that was developed in San Francisco by legislators Tom Ammiano, Carole Migden, and Mark Leno.

“I feel pretty comfortable trusting Ed Harrington on whether the numbers add up,” said the measure’s chief sponsor, Sup. David Campos, arguing against the Farrell/Chu amendments, later adding, “With Ed Harrington leading this charge, this is as good as it gets. If you don’t like CCA under Ed Harrington, you’re not going to like CCA.”

Farrell claimed to support CCA in concept, but he strenuously objected to the opt-out requirements that Migden included in the enabling state legislation, which she had argued was the only way to make CCAs viable against PG&E’s proven willingness to spend tens of millions of dollars to sabotage would-be competitors.

“It’s the wrong way to legislate, the opt-out. It smells of coercion,” Farrell said. Campos countered that, “The best thing we can give the consumers in San Francisco is a choice, a meaningful choice.”

Wiener ultimately made a motion to delay the item by a week, something Mayor Lee yesterday told the Chronicle he wanted, in order to further study the opt-out issue, telling Farrell that his amendment “feels a little seat of the pants to me.”

Campos and other progressive supervisors who were supporting CleanPowerSF argued against the continuance, noting that it has been years in development and sitting in board committees since January, while the Farrell/Chu amendments weren’t offered until this meeting had already begun.    

“This is not going to change because we wait a week to make a decision,” Campos said. “The terms of this deal are not going to change.”

The motion for a continuance failed on a 4-7 vote, with Wiener joined by Farrell, Chu, and Sup. Sean Elsbernd (who offered no comments throughout the hearing).

Then, as the vote on the Farrell/Chu opt-in amendment came up for vote, Wiener said, “I don’t feel comfortable voting for amendments that I don’t know what they’ll do,” and it failed on a 3-8 vote.

Sup. Malia Cohen had earlier indicated a willingness to support the other Farrell/Chu amendment: saddling CleanPowerSF customers with paying the SFPUC back for reserve fund costs – which Harrington indicated could be dragged out over many years to minimize the impact on rates, and which might not be necessary at all if the initial program exceeds expectations.

That amendment was then approved on an 8-3 vote, with Sups. Jane Kim, Christina Olague, and John Avalos opposed. Another set of amendments that would keep low-income city residents out of the initial rollout and take other steps to reduce their rates if they opted in – which was developed by Kim, Cohen, and Sup. Eric Mar – was unanimously approved by the board.

Then it was time for the big vote on creating the CleanPowerSF program, approving the contract with Shell Energy Northern California to administer it, and authorizing the initial $19.5 million expenditure. Would there be eight votes to override a veto by Mayor Lee, who has been under pressure by PG&E and their downtown allies to kill the program?

“To be perfectly candid, I struggled mightily with this contract,” Wiener said, reiterating his concern about its opt-in requirement, noting that the measure wasn’t perfect, even though it was significantly improved from earlier versions. It sounded as if he were about to vote against it.

“What we have the opportunity to do is move forward with clean power,” Wiener said, noting that even Marin County supervisors who initially opposed its CCA have come around to supporting it. “This is something I believe we should try.”

And with that, the board voted 8-3 to launch the program in mid-2013, with Chu, Farrell, and Elsbernd opposed.

Campos said he was “pleasantly surprised” by the vote, while key supporters say they are cautiously hopeful it will stand up during next week’s final supervisorial approval on second reading and in a veto override vote, if that becomes necessary. Campos said he was thankful for the work of Harrington, who got a standing ovation after the vote as the board recognized him for his long service to the city.

Earlier in the meeting, Harrington told supervisors that while the program isn’t perfect, and it contains some risks that he considers reasonable, there is no other way the city has identified to meet ambitious greenhouse gas reduction goals it has set for itself over the last decade. It is city policy to reduce emissions by 25 percent below 1990 levels by 2017 and 80 percent below those levels by 2050.

“This program before you has the only chance of reaching those goals. There’s nothing else,” Harrington said. He also said “it’s an incredibly efficient way to spend money,” noting that the city has spent $90 million on solar and other renewable energy projects that power fewer than 7,000 homes, whereas this $19.5 million will power 90,000 households, possibly without ever tapping into that $13 million reserve fund set aside to cover any losses by Shell, which will buy renewable energy, a role the city hopes to eliminate as it develops its own projects.

Harrington said the ultimate goal of CleanPowerSF is to develop a large enough customer base that the city could use revenue bonds to finance a wide variety of renewable energy projects – many using solar arrays along city-owned property connected to its water system stretching all the way to Hetch Hetchy Valley – that would pay for themselves.

“The real issue is can you build a facility that will have this rate structure support it?” Harrington said.

That’s the real power and potential of CleanPowerSF – finally taking action to address global warming, which will have a huge impact on San Francisco and future generations – as supporters noted in a rally outside City Hall before the meeting. Sen. Mark Leno said that he doesn’t usually weigh in on proposals before the board, but that, “This is an exceptional time and this is an exceptional vote. This is the time that we need to address our inconvenient truth.”

The historic PG&E/clean energy vote today

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And so, after a Guardian campaign that started in 1969 to kick PG&E out of City Hall and bring the city’s own Hetch Hetchy public power to San Francisco residents and businesses, the San Francisco Chronicle reported  in Monday’s edition ( 9/17/2012)  that San Francisco “is on the threshold of taking a major step into the public power realm.”

The lead story by John Cote, under a big front page head “Clean power plan would skirt PG&E,”  nicely laid out the CleanPowerSF program and even said that the plan “would effectively break Pacific Gas and Electric Company’s decades-old monopoly on the consumer power market in its headquarters city.”

He quoted Sup. David Campos, sponsor of the legislation, as saying that “This is about giving consumers a choice. And for the choice to be meaningful, it can’t be dependent on one company deciding the energy future of this city.”  The plan goes before the board on Tuesday (9/18/2012) and public power advocates say they have the votes for passage, despite PG&E’s furious lobbying inside and outside City Hall.

What Cote didn’t say, and what the Chronicle has been blacking out for decades, is the crucial point that this clean energy/ public power plan is no ordinary vote on an ordinary issue.  It is an extraordinary vote that would  start the process to enforce the federal Raker Act of 1913 that mandates that San Francisco have a public power system because the city dammed Hetch Hetchy Valley in Yosemite National Park for its cheap public water and cheap public power.  The city got the cheap Hetch Hetchy water, but it never got the cheap Hetch Hetchy power because PG&E stole it and forced the city to buy PG&E’s expensive private power all these years. The cost: billions of dollars for decades to the taxpayers and enduring structural corruption at City Hall. The Guardian has called this PG&E/Raker Act scandal the biggest urban scandal in U.S. history. It still is.

It’s quite a story and I urge you to check out the hundreds of investigations, stories, editorials, cartoons, and graphics the Guardian has used for years to illuminate the scandal and fight to enforce  the Raker Ac t and bring our own Hetch Hetchy power to our own people in San Francisco.

Buried in the Cote story is a key political point: Mayor Ed Lee, the man who became interim mayor on a phony premise and then lied his way into a full term as mayor, reiterated his “concerns” through a spokesperson that he is, gosh, golly, gee, “concerned about the opt-out provisions, the risks associated with the contract and the cost to residents.”

Marvelous. Simply marvelous. Lee is once again enunciating the PG&E line that mayors before him, notably Willie Brown and Gavin Newsom, have used to keep City Hall safe for PG&E and undercut the threat of public power coming to San Francisco and disturbing PG&E’s questionably legal monopoly. Brown, let me emphasize, was under PG&E’s thumb before, during, and after his mayoral tenure and now operates as an unregistered, $200,000-a -year PG&E lobbyist, Chronicle columnist, and key Lee confidant  and ally.

The current public power proposal isn’t as strong as the three public power initiatives that PG&E spent tens of millions of dollars to defeat.  PG&E would still own the lines and network, handle maintenance, and send out the bills.

But the proposal would provide l00 per cent renewable power to residents who want to pay a bit more for it, build a customer base and revenue stream for city-owned renewable power generation, advance the city’s greenhouse-gas reduction goals, and set aside $2 million to study public power options.  Most important, it would be a helluva good first step toward enforcing the public power provisions of the Raker Act and kicking PG&E out of City Hall.

The supervisors and Lee should approve the legislation and move it forward vigorously and without delay.

This is a historic moment and a historic vote in San Francisco history.  The question is, who is going to be on the right side of history and who is going to be on the wrong side of history with a PG&E vote that will live in infamy?  B3

P.S. A tip of the clean energy hat to Ed Harrington, who successfully wrestled  the proposal through the sea of crocodiles and hippos at City Hall.  He delayed his retirement as general manager of the San Francisco Public Utilities Commission to finish up the proposal.  “This is the single biggest program that is even on the  horizon within the city and county of San Francisco to make any difference toward any of the goals that you have set as board members in terms of having a change in greenhouse gas emissions and climate change in San Francisco,” he told the supervisors’ budget committee last week as reported by Cote.  “This program can make a dramatic change.”  

And a tip of the clean energy hat to Sup. Campos, who put the proposal forward up against  fortress PG&E,  More: a tip of the clean energy hat and a  bow to all the many public power advocates who have fought for years to bring clean energy and public power out of the wilderness and to this position. Furthermore, I salute  Sheriff Ross Mirkarimi, who led the first  two public power initiative campaigns as the unpaid manager and then took on the herculean job of orchestrating the clean energy/cca proposal inside City Hall .when he became a supervisor. Mirkarimi is now paying the price for, among other things, successfully taking on PG&E and the PG&E establishment. His was an enormously courageous and important public service.  On guard,   B3

 

Committee approves CleanPowerSF over downtown opposition

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The question of whether San Francisco creates a renewable energy program that offers an alternative to Pacific Gas & Electric got its first major hearing at City Hall today, with the business community claiming it’s too expensive and supporters arguing that the time has come for the city to address climate change and the long-term energy needs of city residents and businesses.

The Board of Supervisors Budget & Finance Committee voted 2-1 in favor creating CleanPowerSF, entering into a contract with Shell Energy Northern California to administer the program, and devoting $19.5 million from the San Francisco Public Utility Commission’s water fund to help launch it and buy clean power for city residents.

Sups. John Avalos and Jane Kim supported the project, while Sup. Carmen Chu was opposed. It now goes to the full Board of Supervisors next week, where it is expected to have progressive support and be opposed by the fiscal conservatives.

“I do think we will have the necessary majority to get this through,” the measure’s sponsor, Sup. David Campos, told us. But one open question is whether Mayor Ed Lee will veto a measure that his SFPUC appointees developed but his downtown allies are trying to kill, and if so, whether there are eight supervisors willing to override a veto.

But Campos noted that SFPUC officials testified today that CleanPowerSF is the only way they’ve identified to meet the city’s ambitious official goals for reducing greenhouse gas emissions, which call for a reduction of 20 percent below 1990 levels by the end of this year and an 80 percent reduction by 2050.

Supporters who testified today included environmentalists, progressive groups, and young people who cast addressing climate change as the defining struggle of their generation. “This, not to go overboard, is the most important vote you’ll ever do,” said the Sierra Club’s Arthur Feinstein.

Those who spoke against the program included the usual array of downtown groups that have traditionally defended PG&E’s interests – including the Committee on Jobs, Golden Gate Restaurant Association, and Plan C – and they were joined by an unusually large number of elderly Asian individuals wearing stickers opposing the project.

“It’s a bad program that doesn’t meet even the basic elements of its original promise,” said Chris Wright, executive director of the Committee on Jobs, which PG&E has helped fund since its inception. Like most CleanPowerSF opponents, they have long opposed even the concept of community choice aggregation (CCA), the state law that allowed the city to create CleanPowerSF.

PG&E’s longtime support by local politicians has eroded in recent years because of its overkill campaigns against public power initiatives and supporters and its negligence in the deadly San Bruno pipeline explosion.

Even GGRA Executive Director Rob Black told the committee, “PG&E, a local company, candidly has its problems.” But he and other project opponents – and even a few supporters of the project – centered much of their opposition on the involvement of Shell, which has a bad reputation and environmental record, like almost every other multinational energy company.

“I have the same qualms about Shell that everyone else does,” said Katherine Roberts, who said that she nonetheless supports the project, calling it the only way for most San Franciscans to directly support the development of renewable energy sources. Shell was the sole bidder on a project that requires enormous financial wherewithal.

Campos calls the focus on Shell a diversionary tactic: “PG&E already buys energy from Shell. To the extent people don’t want Shell in the picture, Shell is already in the picture.”

Both the supervisors and the mayor will be under intense pressure to derail CleanPowerSF, with that campaign led by downtown groups and IBEW Local 1245, the union that represents PG&E workers. Sup. Scott Wiener, who says he’s still undecided, told us that his office was flooded with phone calls today, mostly in opposition to the project.

PG&E union mounts attack on Clean Power SF

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The union that represents PG&E workers — and has opposed every single public-power initiative in modern San Francisco history — just launched an attack on Clean Power SF. And the union’s business representative is having a hard time explaining exactly why he’s working with PG&E to try to undermine this modest step toward public power.

Hunter Stern, with IBEW Local 1245, sent a press release out Sept. 11 announcing the start of a campaign to convince the supervisors not to approve the Clean Power SF plan. The line of attack: Shell Energy, which got the contract to supply sustainable energy to customers in the city, in competition with PG&E. The pitch:

San Francisco city government is considering a proposal to partner with Shell Energy of North America to inaugurate SF’s so-called “clean power” program. If the Board of Supervisors approves the proposal, San Francisco would pay millions to Shell, one of the most notorious environmental violators in business today.

Shell’s a pretty bad company. So is PG&E. So is just about everyone in the energy business. Not justifying Shell’s behavior, just noting: If you want a contractor to deliver electricty to San Francisco, you aren’t going to get a cool independent small business. You aren’t even going to get Google. These folks are evil, all of them.

Oh, and by the way: Shell Energy also sells power to PG&E (pdf). Stern’s boss has a contract similar to what the city is going to get. So the PG&E power we all pay for today is in part Shell power. And as Sup. David Campos points out, it wasn’t as if the city chose Shell over some better competitors: There was no other company out there anywhere in the world that responded to the city’s bid process and offered to work with Clean Power SF.

The key point here is that Clean Power SF is going to use Shell as a bridge — the private outfit will deliver power generated at renewable facililities to the city’s power operation, which will resell it to customers … for a while. The goal is to use the revenue stream from the sales of power to back bonds that will allow the city to build its own renewable energy system. Five, maybe ten years down the road, San Francisco will have solar generators on city property (including large swaths of Public Utilities Commission property in the East Bay), wind generators, maybe at some point tidal generators, and will be able to sell cheap, clean, local power to customers. Shell will be gone.

Let’s face it: this is a step on the path to creating a city-owned and city-run power system — that is, a step to eliminating PG&E as a player in San Francisco’s energy future. Public power will be cheaper and cleaner — and it’s going to take a while to get there. Which is why we need to start now.

PG&E knows this, too, and is fighting to block Clean Power SF, which comes before the board’s Budget and Finance Committee Sept. 12. Now IBEW is allied, as usual, with the giant company.

The Stern press release talks about how Clean Power SF will be expensive:

The average home can expect to see a rate increase of 77% over their current PG&E electricity generation rates. That comes out to an increase of over $200 per year.  The higher cost of power would eat up more and more of the City budget, forcing service reductions and costing San Francisco vitally needed jobs. Our local economy would take a multi-million dollar hit.

Actually, not true: The only people who will pay for Clean Power SF are the ones who want it. The idea is that a significant number of San Franciscans will be willing to pay a little more — maybe $10 a month — to help save the planet. The ones who want to stick with PG&E wil have every opportunity to do so. The city budget isn’t taking a hit — municipal services already use the city’s Hetch Hetchy hydropower. This doesn’t cost the city money or jobs.

It will, of course, hurt PG&E.

I called Hunter Stern to talk about all of this, and we had a long conversation. He was polite and answered all of my questions. Sort of.

He insisted that IBEW isn’t against community choice aggregation, that he’s only worried about the city budget and the impacts on ratepayers. And Shell. So we started going around in circles, like this:

Me: So you don’t oppose Clean Power SF?

Stern: We are not opposed to community choice aggregation. Just to this contract with Shell.

Me: I’m told Shell is the only contractor willing to fulfill this role.

Stern: That’s what I’m told, too.

Me: So if you support CCA, what should the city do?

Stern: Find somebody else.

Me: The city has made it clear there IS nobody else.

Stern: We should put this on hold and wait around until there is.

Me: Why is IBEW unhappy with Shell?

Stern: This is contracting out.

Me: Is Shell Energy a nonunion company?

Stern: They don’t generate power, they just buy and sell, so they don’t really have any employees who could be in IBEW.

Me: So what if they city can use this revenue to build its own renewables, with union labor?

Stern: We aren’t opposed to the city building its own renewables.

Me: But the idea here is to use the revenue stream from Clean Power SF to raise money for local renewables.

Stern: You don’t need revenue to build local renewables. Just creativity.

Me: But the city has a huge budget problem now. There’s no money to build local generation unless you have a revenue stream to bond against.

Stern: There are creative ways to do it.

Me: So you support CCA. You support building local renewables.Clean Power SF is a CCA program to build local renewables. Shell is the only company that answered the city’s call for bids for this project. You don’t have any labor issues with Shell. I don’t understand where you’re coming from.

Stern: I don’t disagree with your checklist.

Me: So why are you against this project?

Stern: We don’t think this is good for the city or for the ratepayers.

Me: But the ratepayers don’t have to be a part of it if they don’t want to.

Stern: I think the way the city is approaching that is a good strategy.

Round and round and round. It was making my head hurt. I wish I’d put it on tape so you could all listen.

I passed the press release along to Tyrone Jue at the SFPUC. He had a pretty clear response:

This attack is not surprising. IBEW is one of the largest unions at PG&E. They historically side with PG&E on all their issues. The fact is CleanPowerSF will not cost IBEW workers jobs. Ironically, the local renewable build out phase will be creating even more green union jobs. This happens while we weaning ourselves off dirty fossil fuel sources.San Franciscans want the choice to embrace a clean energy future. While PG&E shareholders stand to lose with CleanPowerSF, the consumer and environment stand to win.

He added:

Our ‘little creativity’ involves reinvesting revenue into aggressive energy efficiency and local renewable generation projects.  We’re simply not motivated to maximize profit at the expense of our customers or the environment.   Our common sense goal is to reinvest revenue into real projects that will reduce San Francisco’s carbon footprint, create local jobs, and build a sustainable energy future that is better for the environment and our customers.

Ugh. This is going to be a battle royal. I hope there are six votes on the board for Clean Power SF, which is imperfect but important. And then Mayor Lee will have to decide whether to side with his highly respected SFPUC general manager, Ed Harrington, who wants to make this happen, and PG&E, which doesn’t.

Oh, by the way: PG&E pays Willie Brown about $250,000 a year as a “legal retainer.” And I hear the mayor takes his phone calls.

Missing the point on Hetch Hetchy

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So now we have to have a vote on tearing down Hetch Hetchy. That’s fine, let’s have the discussion. But let’s be honest about it: This isn’t just, or even primarily, a water issue. It’s really about electric power.

If you want to read the piece I wrote on this for Earth Island Journal, it’s here. I’ve written loads more over the years, enough to fill a couple of good-sized books. But let me try to make the point as simply as I can.

The dam would never have been approved by Congress if it were just a reservoir for San Francisco’s water. The reason the Raker Act, which authorized the destruction of Hetch Hetchy Valley, was approved was that the conservationists, who opposed the dam, were trumped by the public-power advocates, who argued that preventing private companies from controlling the electric power grid was so important that it justified environmental sacrilege. The dam was supposed to provide the centerpiece for a local public-power system that would prevent Pacific Gas and Electric Company from controlling the city’s energy system.

The history of Hetchy Hetchy isn’t about water — it’s about how that power never made it to San Francisco. You can read it in great detail here. I have spent weeks in the National Archives in DC researching this, and have thousands of pages of documents on it. You may or may not support the idea of the city running a public-power system, but it’s hard for anyone to argue that Congress intended anything else.

The city accepted the deal, built the dam, and has for almost a century ducked, bobbed, weaved, and tried everything possible to avoid kicking out PG&E.

So why keep the dam in place? I don’t believe the Restore Hetch Hetchy people when they say that the city can find other storage for its water needs. Tear down the dam and we’ll be sucking water out of the Delta soon enough. But forget that — let’s assume we could conserve enough water that we didn’t need that reservoir.

We’d still have to replace a buttload of electric power. The city’s hydropower system generates 1.7 billion kilowatt hours a year, enough to power more than 400,000 homes — and does so without producing an ounce of CO2. Although there are other powerhouses in the system, we’d lose almost half of its capacity if we tore down the dam.

It seem to me that existing large hydro, while imperfect, is a more environmentally sound form of electricity generation than coal, oil, natural gas, or nuclear — and right now, those are the alternatives.

Soon enough the city will have enough small-scale distributed generation, mostly rooftop solar, to get rid of both PG&E and the dam. Count me as a supporter. But we’re not there yet.

In the meantime, if we’re going to have this discussion, let’s talk about electricity, and PG&E, and the Raker Act, not just water and the once-pristine valley.

 

 

 

PG&E’s latest fire problem

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Sup. David Campos was at the fire on San Bruno Ave — the one that burned for two hours before PG&E crews managed to shut off a gas pipeline, and he told me the situation was a disaster. “PG&E had apparently done some work on the pipe but hadn’t documented it,” he said. “Nobody was there when we needed to shut it off. Two hours — that’s unacceptable.”

You’d think that after what happened in San Bruno, PG&E would have figured out how to respond to gas fires a little more quickly. You’d think someone in charge of that utterly screwed-up company would have made fire safety a priority. But no: Now PG&E has the normally quiet San Francisco fire chief pissed, has Campos calling for hearings on local gas pipeline safety and is on the proverbial hot seat again.

It’s as if nobody over there cares. What’s going to happen? The CPUC will impose a little fine? The city will demand some changes? So what? The monopoly utility can just ignore it all. The senior execs will still get their huge salaries and bonuses, any additional costs will be passed on to the ratepayers — and one of these days, another pipe will blow up and kill a bunch of people, and PG&E will say: Ooh, sorry about that.

And the next time PG&E throws a couple of dollars at some civic project, the mayor will forgive all the past problems and talk about what a great company it is.

Why do we put up with this?

Restore Hetch Hetchy conjures corporate boogiemen

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The campaign for a ballot measure that seeks to create a plan for tearing down the O’Shaughnessy Dam – San Francisco’s main source of clean water and power – and turning the Hetch Hetchy Valley into a tourist destination must be having a hard time collecting the 9,702 signatures it needs by July 9 because it is resorting to conjuring up unlikely boogiemen to win public sympathy.

Restore Hetch Hetchy just sent out a press release accusing opponents of the measure of preparing a “tobacco industry-style negative ad blitz” funded by venture capitalist Ron Conway and other corporate evildoers.

“Just like the tobacco industry’s big money confused so many people into opposing the Prop. 29 tobacco tax they initially supported, now we’re seeing corporate money flowing like a dirty river right into the coffers of what promises to be yet another nasty negative campaign,” said Mike Marshall, campaign director for the Yosemite Restoration Campaign, which his Restore Hetch Hetchy group is sponsoring.

It cites a statement made by the Bay Area Council – which they helpfully remind us includes “PG&E, Chevron, and Mitt Romney’s former company Bain & Co.” – that Conway has pledged $25,000 to the opposition campaign.

Where do I even begin to unravel this ridiculously hyperbolic and misleading appeal? Let’s start with the fact this has nothing to do with Big Tobacco, Big Oil, Big Capitalists, or Big Utilities. It isn’t corporations that are standing in the way of spending billions of dollars to tear down the dam and replace the lost power and water – it is just about every elected official in the region, from across the political spectrum, and any San Franciscan who has at least as much reason and sentimentality. As for PG&E, I’m sure the utility would just love to see San Francisco’s main source of electricity torn down, which would only expand its monopolistic control of our energy system.

Frankly, the misleading release reeks of desperation, and when I asked campaign consultant Jon Golinger whether the campaign is in trouble, he responded, “We are certainly quite clear this is a David versus Goliath situation, or whatever analogy you want to make.”

Okay, how about a Fantasy versus Reality situation? Or a Past versus Present situation? Or San Franciscans versus Dan Lungren, the right wing member of Congress who has been pushing to remove the dam supposedly because he loves Yosemite Valley so much and wants to create another one (or, more likely, because he wants to tweak the San Francisco liberals and get us fighting among ourselves over something pointless and distracting).

I’m sorry, but I just can’t get my head around the appeal of this idea, which the Sacramento Bee editorial writers actually won a Pulitzer Prize for conjuring up in 2004, certainly another sign of the modern decline in journalism standards. I get that legendary conservationist John Muir was right and this dam probably shouldn’t have been built, and that it might be kinda cool to have another beautiful valley to hike in once the sludge dries up over a few decades.

But when we can’t even find adequate funding for public transit, renewable energy sources, and the multitude of other things that really would help the environment – not to mention while we’re heading into an era when water supplies in the Sierras could be depleted by climate change – do we really want to spend billions of dollars to fetishize one valley and destroy the engineering marvel that is one of the best and most energy-efficient sources of urban water in the country?

Or am I just shilling for Big Tobacco and Mitt Romney because that’s how I see it?

Guardian editorial: Mixed report on Mayor Lee

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EDITORIAL Mayor Ed Lee’s first big decision — the appointment of a District 5 supervisor — demonstrated something very positive:

The mayor knows that he can’t do what his predecessor did and ignore and dismiss the progressive community.

His inauguration speech demonstrated something else: That he has no intention of being a mayor who takes on and defies the interests of downtown.

Part of the reason Gavin Newsom was a failure as mayor is that he was constantly at war with the left. He ran the city as if his was the only way, as if there were no good ideas coming out of anywhere except his office — and as if anyone who disgreed with or voted against him was his enemy.

That didn’t work, and it doesn’t seem to be Lee’s style. He was under pressure to appoint a supervisor who would go along with him on key votes, but he also knew that a moderate or a lackey would deeply offend the voters in D5, who supported John Avalos for mayor and remain among the most progressive voters in the city. The choice of Christina Olague shows a willingless to accept that progressives play a significant role in San Francisco politics. (It also shows that he is better than any mayor in recent memory at keeping a secret — nobody outside of his inner circle had any idea who his choice was until he announced it Jan 9.)

Olague was, overall, an excellent planning commissioner, and has the potential to be an excellent supervisor. But she will need to make clear from the start that she is representing the district, not the person who gave her the job. Because on some of the key issues that will come before the board this spring, her constituents are well to the left of the mayor. If she can’t vote against his wishes, she’ll have trouble in November.

Olague also needs to be sure that some of the issues her predecessor, Sheriff Ross Mirkarimi, championed (public power and community policing, for example) don’t fall by the wayside. Her expertise in land use issues should be helpful as the board wrangles with waterfront development, affordable housing and the giant California Pacific Medical Center hospital project.

Lee’s inaugural speech was mostly a typical political speech for a new mayor, but it contained a nugget that’s worthy of note. He proclaimed that San Francisco should be a “city of the 100 percent,” a takeoff on the Occupy movement’s 99 percent slogan. And while that’s mostly rhetoric, it’s also a sign that the former housing activist is not going to be a mayor who wants to make a legacy of challenging the economic and political powers of San Francisco.

Working together is fine — but there are a small number of very wealthy and powerful people who have interests that are utterly opposed to the interests of the rest of us. Economic injustice is every bit as real in this city as it is elsewhere in the country — and that’s something the mayor didn’t even mention or acknowledge. Pacific Gas and Electric Co., the big real-estate developers, the landlords out at ParkMerced, the Chamber of Commerce,  and the Board of Realtors … they don’t want to work together. They want their way.

So it’s a mixed report for Mayor Lee — and over the next few months, he’s going to have to realize that everyone in the city can’t and shouldn’t work together, that there are battles where politicians have to take sides, and that all of us will be watching very closely to see where he draws the line.

PG&E could be gone in five years

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There’s a new map of solar-power cost projections that estimates that San Franciscans could replace PG&E power with local distributed solar as early as 2017. Sfist reported on the map today — and it adds to the clear evidence that San Francisco needs to devote resources to building its own clean-energy infrastructure. Because if the city starts planning to build solar arrays today, and starts designing a plan to help local residents and businesses put solar on their roofs, the day when the cost of that energy will be lower than the cost of PG&E’s fossil-fuel and nuclear power is rapidly approaching.

 

PG&E’s system fails — again

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EDITORIAL There’s no question that officials from Santa Clara — thrilled to have finalized financing for a new 49ers stadium — were taking full political advantage of the Dec. 19 blackouts at Candlestick Park. There’s no question that the event Mayor Ed Lee called a “national embarrassment” helped guarantee that the team will leave San Francisco after one more season.

But this is about more than football — and the mayor and the supervisors ought to using this latest PG&E screw-up to take a serious look at the company’s reliability and its impact on the city.

This is hardly the first embarrassing PG&E blackout in San Francisco. For the past few years, the private utility’s aging infrastructure has been failing, leaving businesses and residents in the dark. And while PG&E officials are trying to blame the city for the latest snafu, everyone admits that the problem started when a PG&E power line snapped.

Snapping power lines are a dangerous prospect — in this case, nobody was hurt and the arcing electricity didn’t start any fires. But that was largely a matter of luck — the jolt from the broken line lit up TV screens all over the country and if it had happened close to some flammable object (or, worse, some live person), the damage could have been serious.

As it was, millions of people watched San Francisco’s football stadium go dark — twice. The electricians at Candlestick patched things together and the game went on, but the message was clear: PG&E can’t be trusted to keep its equipment in safe, operating condition.

The city of San Bruno is still trying to recover from the natural gas explosion that killed eight people and leveled a neighborhood. And while local and state officials are giving increased scrutiny to PG&E’s underground gas pipes, the electricity system isn’t in much better shape.

Blackouts are more than an embarrassment — they cost the city and its businesses money. And, as the almost certain loss of the 49ers shows, unreliable infrastructure doesn’t help the local business climate. As Santa Clara Mayor Jamie Matthews told the Bay Citizen: “The reason they moved to Santa Clara is the reliability of our services. We have reliability in our electricity system that is unparalleled.”

One reason: Santa Clara has its own municipal power system. Rates are lower, blackouts are unheard of and the equipment is well maintained. Compare that to PG&E, where company executives diverted gas line maintenance money to pay themselves bonuses, and you see why San Francisco, which relies on the private monopoly, has a problem.

The supervisors ought to take this opportunity to hold hearings on the reliability of PG&E’s electric and gas system in the city — looking not just at the Candlestick problem but at the maintenance records, the age of crucial equipment, the company’s replacement plans and the economic impact of a shoddy electrical system. That should be part of Mayor Lee’s investigation, too.

At some point, San Francisco residents are going to have to pay to rebuild this system. They can pay through higher PG&E rates when the utility finally gets around to it — or they can begin the process of creating a municipal utility, which can do the job right, bring down rates and improve the business climate that the mayor so loves to discuss.

Guardian editorial: PG&E’s system fails again!

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EDITORIAL There’s no question that officials from Santa Clara — thrilled to have finalized financing for a new 49ers stadium — were taking full political advantage of the Dec. 19 blackouts at Candlestick Park. There’s no question that the event Mayor Ed Lee called a “national embarrassment” helped guarantee that the team will leave San Francisco after one more season.

But this is about more than football — and the mayor and the supervisors ought to be using this latest PG&E screw-up to take a serious look at the company’s reliability and its impact on the city.

This is hardly the first embarrassing PG&E blackout in San Francisco. For the past few years, the private utility’s aging infrastructure has been failing, leaving businesses and residents in the dark. And while PG&E officials are trying to blame the city for the latest snafu, everyone admits that the problem started when a PG&E power line snapped.

Snapping power lines are a dangerous prospect — in this case, nobody was hurt and the arcing electricity didn’t start any fires. But that was largely a matter of luck — the jolt from the broken line lit up TV screens all over the country and if it had happened close to some flammable object (or, worse, some live person), the damage could have been serious.

As it was, millions of people watched San Francisco’s football stadium go dark — twice. The electricians at Candlestick patched things together and the game went on, but the message was clear: PG&E can’t be trusted to keep its equipment in safe, operating condition.

The city of San Bruno is still trying to recover from the natural gas explosion that killed eight people and leveled a neighborhood. And while local and state officials are giving increased scrutiny to PG&E’s underground gas pipes, the electricity system isn’t in much better shape.

Blackouts are more than an embarrassment — they cost the city and its businesses money. And, as the almost certain loss of the 49ers shows, unreliable infrastructure doesn’t help the local business climate. As Santa Clara Mayor Jamie Matthews told the Bay Citizen: “The reason they moved to Santa Clara is the reliability of our services. We have reliability in our electricity system that is unparalleled.”

One reason: Santa Clara has its own municipal power system with a much better service and reliability record than PG&E.  Rates are lower, blackouts are unheard of and the equipment is well maintained. Compare that to PG&E, where company executives diverted gas line maintenance money to pay themselves bonuses, and you see why San Francisco, which relies on the private monopoly, has a problem.

The supervisors ought to take this opportunity to hold hearings on the reliability of PG&E’s electric and gas system in the city — looking not just at the Candlestick problem but at the maintenance records, the age of crucial equipment, the company’s replacement plans, the expensive loss of the city’s Hetch Hetchy power being wheeled on PG&E lines, and the economic impact of a shoddy electrical system.  That should be part of Mayor Lee’s investigation, too.

At some point, San Francisco residents are going to have to pay to rebuild this system. They can pay through higher PG&E rates when the utility finally gets around to it — or they can begin the process of creating a municipal utility, which can do the job right, bring down rates, improve the business climate that the mayor so loves to discuss, and move  the city  into compliance with the federal Raker Act mandating public power for San Francisco.

 

 

More reasons why PG&E hurts the city

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I know that the folks in Santa Clara are just taking full political advantage of the Candlestick blackout, buy you have to admit: They have a persuasive case. Here’s today’s Bay Citizen:

On Tuesday, Santa Clara’s mayor said his city’s superior public infrastructure helped lure the Niners away from San Francisco.

“To say this would be unlikely here is too kind: it simply could not happen in Santa Clara,” Mayor Jamie Matthews said in a Tuesday interview.

Santa Clara’s publicly owned Silicon Valley Power agency runs its own power generation and distribution system, drawing on sources such as wind turbines on Altamont Pass.

“The reason they moved to Santa Clara is the reliability of our services,” Matthews said. “We have reliability in our electricity system that is unparalleled.”

Yep: PG&E’s aging infrastructure and its inability to keep the lights on costs San Francisco jobs. And a reliable public system like the one in Santa Clara would help attract business. Maybe even more than tax breaks.

You paying attention, Mr. Mayor?

 

Are we green yet?

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rebeccab@sfbg.com

A contract agreement for San Francisco’s innovative clean energy program, CleanPowerSF, could be approved by the San Francisco Board of Supervisors as soon as January, representing a major milestone for efforts to put the city in the retail electricity business.

CleanPowerSF, which stands out as one of California’s most ambitious community choice aggregation (CCA) municipal energy programs, would offer San Francisco customers the option of powering their homes with 100 percent renewable energy instead of the standard mix of predominantly gas and nuclear-generated power supplied by PG&E.

According to a draft contract introduced at the board, energy would be purchased on the open market by Shell Energy North America and delivered to residential customers, who would pay a modest premium for the service. The first phase would target a narrow customer base, with plans for expansion.

In the long run, the San Francisco Public Utilities Commission (SFPUC) has committed to constructing city-owned wind farms, solar arrays, and combined-heat-and-power systems to generate green power locally, which would ultimately lock in lower electricity rates — but this remains in an early assessment phase. Energy consultant Paul Fenn of Local Power Inc. is conducting the study.

 

HURRY UP AND WAIT?

The fact that a draft contract agreement is under consideration signifies a breakthrough for a program that for years crept along at a snail’s pace, as tension simmered between SFPUC officials and members of the Local Agency Formation Commission (LAFCo), the body overseeing CleanPowerSF implementation.

“We have been waiting for this for so many years,” remarked Sup. David Campos, who chairs LAFCo. “We pushed the [SFPUC] really hard.”

Yet longtime advocates of San Francisco’s CCA, like Eric Brooks and other environmentalists affiliated with the Local Clean Energy Alliance, worry that CleanPowerSF will never hit its stride because it won’t be accessible to customers who want to go green but can’t afford the higher price tag. In an ironic twist, he and others who previously excoriated the SFPUC for its sluggish progress are now urging the lead agency to pause instead of steamrolling ahead.

“We did not want things to go the way they did,” Brooks said. “We’re saying, you should not finalize the contract with Shell until we have the build-out information. It enables us to get better rates,” he added. With detailed, shovel-ready plans in place, Brooks said, arrangements with Shell could hinge on plans for city-owned generation.

Early plans for city-generated power call for enough projects and retrofits to account for 360 megawatts of efficient and renewable energy capacity, including 31 MW of solar panels and 150 MW from a wind farm, plus a combination of weatherization and other efficiency measures. The Local Clean Energy Alliance estimates that more than 1,000 jobs associated with these projects could be created within the first three years.

SFPUC officials and Campos remain unconvinced that it’s a good idea to hold off on finalizing the Shell contract.

“We’re all kind of moving toward the same goal,” SFPUC spokesperson Charles Sheehan said. “If we wait a year or two years, you don’t know what’s going to happen in the future. We have to seize the moment.”

Campos and Sheehan both said advocates’ concerns would be addressed by a contract provision allowing the city to swap green power purchased by Shell with green power produced locally, once the electricity becomes available. The SFPUC also agreed to a provision committing to the build-out program, on a separate track from the Shell contract.

“We’re not going to be able to [start building] unless we have the customer base to begin with,” Campos pointed out. “I have a different perspective in terms of why it’s important to move forward,” he acknowledged, but said he was looking forward to a “healthy debate” at the board.

For all its complications, CleanPowerSF is a quintessential example of that progressive adage “think globally, act locally.” In early November, the International Energy Agency issued a warning calling for dramatic changes in power generation. With so many coal-fired power plants under construction worldwide, the agency noted, the opportunity to avert the worst impacts of global climate change will have passed completely by 2017.

 

ULTRA GREEN, FOR A FEE

San Franciscans will be able to reduce personal energy usage and perhaps shed some consumer guilt by participating in the CCA program. Under the plan, Shell will purchase electricity from carbon-free sources and sell it to the SFPUC for distribution to CleanPowerSF customers. The shift will green the power mix on the grid while sending market signals that the demand for renewable power is on the rise.

At the start of the program, which the SFPUC pegs as July or August of 2012, up to 270,000 residential customers will be automatically enrolled. Targeted customers will also receive notices asking them to choose whether to stay with the program, or opt out and continue receiving power from PG&E.

Exact rates won’t be hammered down until February or March of 2012, but preliminary estimates suggest most customers will pay roughly $7 a month more for the green power, though a few (those who use a lot of electricity) could wind up paying as much as $50 more.

The price tag could prove to be a tough sell, even in affluent San Francisco. “We’ve done extensive market research,” explained Sheehan. “And we have taken into account PG&E’s opposition campaign,” an all-but-guaranteed response to the program which the utility giant unleashed in full force when neighboring Marin County undertook its own CCA.

Based on the research, “We are forecasting a two-thirds opt-out rate,” Sheehan explained. Initially, this means only around 10 percent of San Francisco residents — a population likely limited to those in higher income brackets — are expected to enroll. From there, new rounds of enrollment and opt-out noticing would follow.

The draft contract includes a $19.5 million appropriation, which includes operating reserves plus a $15 million escrow account. That’s the maximum payout Shell could receive if the city terminated the contract before the agreed-upon date and left the company stuck with unused power.

“It’s one way of showing we have some skin in the game,” Sheehan explained. Shell would only be eligible for $15 million at the start of the 4.5 year contract, he added, and even then it would only take effect if Shell was forced to sell the excess power at a lower price than it paid.

The Shell contract cannot go into effect until several steps have been accomplished. First, the board must give its stamp of approval for the contract and the $19.5 million appropriation. The SFPUC must then finalize program rates.

The SFPUC is also awaiting a ruling from the California Public Utilities Commission (CPUC) determining a bond amount required for all CCA programs. The bond is “kind of a mechanism to make PG&E whole, if in the very unlikely circumstance, this program would cease,” and PG&E had to absorb all CCA customers immediately, Sheehan explained. He said a ruling is expected in February.

The plan to offer ultra green power at a higher price is a departure from the original program goals, which were to offer greener-than-average power at or below PG&E electricity rates. That concept was jettisoned after SFPUC staff determined the objective wouldn’t pencil out in the short term.

Whether or not the supervisors will sign off on the contract as it stands remains to be seen, though Sheehan was optimistic. Campos said it would be important to educate members of the board of supervisors and the public about the program. “It’s going to be investment that’s going to pay for itself,” he said, “many years down the road.”

Making CleanPowerSF work

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EDITORIAL The way the San Francisco Chronicle describes it, the city’s new green power program “won’t come cheap.” That’s a line that Pacific Gas and Electric Co. will use over and over again in the next few months as the city finally prepares to get into the retail electricity business, 98 years after Congress mandated public power for San Francisco. Clean Power SF will offer 100 percent clean energy — and yes, right now, this spring, it will cost a little bit more than buying nuclear and coal power from PG&E.

But that price differential will change dramatically in the next few years — if the city goes forward not just with buying and aggregating power from the commercial market but developing renewable energy on its own.

That’s the key to the future of CleanPowerSF — and as a proposed contract to get the system up and running comes to the Board of Supervisors, the need for a city build-out of at least 210 megawatts of energy generation capacity is, and must be, an essential part of the plan.

The fact that the city, at long last, is moving toward implementing this program is a testament to the work of Sup. Ross Mirkarimi, who pushed it for years, and Sup. David Campos, who more recently took over the lead role. Both deserve immense credit for their work.

As Rebecca Bowe reports in this week’s issue, there’s some disagreement about the contract proposed by the San Francisco Public Utilities Commission. The deal with Shell Energy North America would have the energy giant buy green power wherever it can, deliver it to San Francisco customers along PG&E’s lines — and charge enough to pay for the power and overhead expenses. That, initial reports say, could raise the bill of an average customer somewhere between $7 and $50 a month, depending on use. For most residential customers, the increase is going to be on the low end.

The problem is that the PUC estimates from the start that two-thirds of the potential customers will drop out of the program and stick with PG&E. That’s an abysmal projection, reflecting in part the PUC’s long reluctance to take the program seriously, in part a failure to plan an aggressive marketing campaign — and in part the lack of a long-term vision for the program.

The bottom line is simple: As long as the city is buying energy from somebody else, there are going to be problems. Right now, renewable energy demand exceeds supply, so prices are high. That’s going to fluctuate over the next decade.

But it’s entirely possible for the city to build its own renewable infrastructure and generate power that will beat PG&E’s prices in the short-term future — and will be far, far less expensive a decade down the road. Clean Power SF will never work to its full potential unless the city owns a significant part of the generation system. (Ultimately, the city will never see the full economic benefits of public power until it buys out PG&E or builds its own delivery system.)

The PUC included — at the demand of public-power advocates — a clause in the contract stating that a city build-out was part of the plan. The proposal before the board only includes the contract with Shell — but the final deal should include specific plans for how much local power will be generated, how it will be funded — and how it will ultimately replace the power Shell is providing. The city should start right now looking for sites (there’s lots of surplus city land) and seeking bids for construction, and if the PUC can’t come up with enough revenue-bonding money, the board should put a comprehensive clean energy bond on the November ballot.

The Local Clean Energy Alliance estimates that building 210 megawatts of clean power in San Francisco would generate nearly 1,000 direct jobs and as many as 4,300 indirect jobs. That sort of program would be a boost to the economy and guarantee the city stable energy sources for the future. And it would allow the PUC to market Clean Power SF not as a plan that will cost consumers more today — but as a plan that the city can all-but guarantee will save you money, substantial amounts of money, over the next 10 years.

Guardian editorial: Making Clean Power SF work

1

EDITORIAL The way the San Francisco Chronicle describes it, the city’s new green power program “won’t come cheap.” That’s a line that Pacific Gas and Electric Co. will use over and over again in the next few months as the city finally prepares to get into the retail electricity business, 98 years after Congress mandated public power for San Francisco. Clean Power SF will offer 100 percent clean energy — and yes, right now, this spring, it will cost a little bit more than buying nuclear and coal power from PG&E.

But that price differential will change dramatically in the next few years — if the city goes forward not just with buying and aggregating power from the commercial market but developing renewable energy on its own.

That’s the key to the future of Clean Power SF — and as a proposed contract to get the system up and running comes to the Board of Supervisors, the need for a city build-out of at least 210 megawatts of energy generation capacity is, and must be, an essential part of the plan.

As Rebecca Bowe reports in the Guardian, there’s some disagreement about the contract proposed by the San Francisco Public Utilities Commission. The deal with Shell Energy North America would have the energy giant buy green power wherever it can, deliver it to San Francisco customers along PG&E’s lines — and charge enough to pay for the power and overhead expenses. That, initial reports say, could raise the bill of an average customer somewhere between $7 and $50 a month, depending on use. For most residential customers, the increase is going to be on the low end.

The problem is that the PUC estimates from the start that two-thirds of the potential customers will drop out of the program and stick with PG&E. That’s an abysmal projection, reflecting in part the PUC’s long reluctance to take the program seriously, in part a failure to plan an aggressive marketing campaign — and in part the lack of a long-term vision for the program.

The bottom line is simple: As long as the city is buying energy from somebody else, there are going to be problems. Right now, renewable energy demand exceeds supply, so prices are high. That’s going to fluctuate over the next decade.

But it’s entirely possible for the city to build its own renewable infrastructure and generate power that will beat PG&E’s prices in the short-term future — and will be far, far less expensive a decade down the road. Clean Power SF will never work to its full potential unless the city owns a significant part of the generation system. (Ultimately, the city will never see the full economic benefits of public power until it buys out PG&E or builds its own delivery system.)

The PUC included — at the demand of public-power advocates — a clause in the contract stating that a city build-out was part of the plan. The proposal before the board only includes the contract with Shell — but the final deal should include specific plans for how much local power will be generated, how it will be funded — and how it will ultimately replace the power Shell is providing. The city should start right now looking for sites (there’s lots of surplus city land) and seeking bids for construction, and if the PUC can’t come up with enough revenue-bonding money, the board should put a comprehensive clean energy bond on the November ballot.

The Local Clean Energy Alliance estimates that building 210 megawatts of clean power in San Francisco would generate nearly 1,000 direct jobs and as many as 4,300 indirect jobs. That sort of program would be a boost to the economy and guarantee the city stable energy sources for the future. And it would allow the PUC to market Clean Power SF not as a plan that will cost consumers more today — but as a plan that the city can all-but guarantee will save you money, substantial amounts of money, over the next ten years.

 

Sup. Elsbernd ducks more Impertinent Questions

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Well, I am sad to report that my neighborhood supervisor, Sean Elsbernd, has once again refused to answer my Impertinent Questions and to say if he voted for Ed Lee for mayor. Perhaps I will tell you, he says, perhaps not and he chose to perhaps not. He has thus refused to shed light on his role in one of the most fateful nominations in San Francisco history.

 Here’s the latest version of the almost famous Que Syrah correspondence between Elsbernd and me on these critical Impertinent Questions. (As attentive readers of this blog know, I have been trying for months to get Elsbernd to meet me to talk about these questions at Que Syrah, a nifty little wine bar in the West Portal area of Elsbernd’s district. I am still trying.)

 When Willie Brown, Rose Pak, and the downtown gang were plotting their move  to outfox the progressives in City Hall in January  and install Ed Lee as the interim mayor, they chose Sean Elsbernd to take the lead and nominate Lee for this crucial job.

 He intoned at the time and later in writing to me that he was nominating Lee only on condition that Lee would serve as an interim mayor to fulfill the vacancy created by then Mayor Newsom who was off to Sacramento as the newly elected lieutenant governor. Lee, Elsbernd emphasized, thumping the lectern, would not run for mayor.

 Well, the Guardian and many progressives and I said at the time that this was just the Willie and Rose play, to get Lee in as interim mayor and then roll him over to run for mayor in the fall with the major advantage of incumbency.

 And so when Lee as we expected changed his mind and ran for mayor, Elsbernd was left in the position of being a key player in the plot to put Lee into the mayor’s office under false pretenses. And of course in the process he would ace out two more qualified candidates, former Mayor Art Agnos, and retiring sheriff Mike Hennessey.. Both were ready to serve as interim mayor and both pledged they would not run for mayor and most important neither would operate as enablers for Willie, Rose, and their undisclosed clients. (Willie, for starters, is on a  $200,000 plus a year retainer for PG&E, according to PG&E filings with the California Public Utilities Commission.)

 When the tide of sleaze started rising in the mayor’s office and Willie, Rose, and the gang were pounding on Lee to run, I asked Elsbernd another Impertinent Question: Would he have nominated Lee if he knew Lee was going to reverse field and run for mayor?

Elsbernd replied that he had not endorsed anyone, but that “I have been most attracted to the candidacies of City Attorney Dennis Herrera and former Supervisors Alioto-Pier and Bevan Dufty.” He said that these three have the “right combination of qualifications, experience, intelligence, skills and integrity to serve as mayor. Should Mayor Lee run for election, I would only consider endorsing his effort under one circumstance—if, and only if, I was convinced that without his candidacy, Sen. Leland Yee would be elected. That is, if I see that no one else can beat Sen, Yee other than Mayor Lee, then I would support a Mayor Lee campaign. At this point, I’m not convinced of that—I still think any one of the three I mentioned above could beat Sen.Yee.”

Just before election day when Lee was running solidly ahead in the polls, I posed more Impertinent Questions to Elsbernd: who did he support for mayor and why? He replied that he had not yet voted and had not endorsed a candidate and then stated, “Talk to me on November 9 and perhaps I’ll tell you who I voted for. Rest assured, the Bay Guardian’s endorsements will certainly influence my decision-making process.”

And again,  after Lee won handily thanks in large part to the decisive advantage that Elsbernd helped give him, I took Elsbernd up on his promises and emailed him more Impertinent Questions: Who  did he vote for and why? He ducked again and asked me to read his “original email” and to note the significance of the word “perhaps.”

Perhaps he would tell me, perhaps he wouldn’t tell me. He chose not to tell me, and the rest of his constituents,  why he made the nomination as a “neighborhood” supervisor  that helped return Willie, Rose, and the downtown gang to power in City Hall.

His explanation was classic Elsberndese and I quote it in full in all of its elegance.

”Another e-mail?  Another entry in your blog? And now a deadline?  At what point am I going to start receiving a byline in the “Guardian?” I am not going to share with you and your readers for whom I voted.  I’ll keep that one between me and my ballot.  I voted for 3 candidates who I believed had integrity, intelligence , and some grasp of the daunting fiscal challenges facing the State and the City.

“Am I happy with the results?  Again, I’m going to deflect that question because I have learned in the short time I’ve been around here, that focussing on wins and losses of past elections can take you down a rabbit hole from which you’ll never recover.  Rather, the most pragmatic thing I can do for my constituents, which is, after all, what I am here to do, is to recognize the result, accept it, and move forward with it.  Ed Lee is now San Francisco’s Mayor-elect, and I am very excited about being able to work with him during my remaining 13 months in office.  He and I worked extremely well together in developing Proposition C, which the voters overwhelmingly endorsed (and, yes, thank you to the Guardian for your endorsement – you actually got a few right this year).

“We have had some policy disagreements (e.g.  Proposition B), but I have always found him to be open to dialogue, extremely deliberate and thoughtful, and, most importantly, honest.  When we have disagreed, he has explained why and has done so with a logical argument.  While that may sound simple, I can assure you, that is a rare characteristic in this building and it is one I very much appreciate. Have fun parsing this e-mail apart.”

Final Impertinent Questions: If Elsbernd really finds Lee “open to dialogue, extremely deliberate and thoughtful and most importantly honest” and Lee explains his disagreements with Elsbernd with “a logical argument,” how in the world does Elsbernd explain the months of lies and deceptions by Lee before he decided, gosh, golly, gee, that he changed his mind and  was running for mayor after all? How does Elsbernd explain how the sleaze continues to rise in Lee’s office?  How does Elsbernd explain why, as a “neighborhood” supervisor, that he has once again followed the Willie Brown/RosePak/downtown gang agenda by introducing a June 2012 charter amendment to repeal rank choice voting, with public financing and perhaps even district elections in his gun sights? Wasn’t this all part of the master plan to gut progressive measures to level the playing field on local  elections?

Sean? Sean? Let’s talk about all of this this over flights of the wondrous wines from small, locally owned wineries and the Barcelona -style tapas served up  at Que Syrah. To that end, I will keep sending you the notices of Que Syrah special events. B3

 

 

Editorial: Mayor Lee is tough as hell on Occupy SF protestors, but keeps City Hall safe for PG@E and the downtown gang

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And so Mayor Ed Lee once again shows his true colors:  he is tough as hell on Occupy SF protestors and, unlike every other mayor in every other U.S. city,  sends in the cops to roust them out in  two midnight raids and trumpets the word  by bullhorn from the mayor’s office that he will harass them until the end of time. Meanwhile, he is is quietly sending  sending out the message that under his stewardship that City Hall will be safe for PG@E, the downtown gang, the big developers, the bailed banks, and the feds who are going after the dispensers of medical marijuana and the newspapers who run their ads.  (Full disclosure: that’s us at the Guardian.)  B3

EDITORIAL This is what civility and compromise looks like:

At a little after 10 P.m. Oct 16, a squadron of San Francisco police equipped with riot gear raided and attempted to shut down the OccupySF protest. It was the second time San Francisco has embarrassed itself, becoming the only major U.S. city to attempt to evict members of the growing Occupation movement — and this time, the cops used a lot more force.

The first crackdown, on Oct. 5, was supposedly driven by concerns that the activists were using an open flame for their communal kitchen without the proper permits. This time around, the alleged lawbreaking was confined to a Park Code section that bans sleeping in city parkland after 10 p.m. And since Justin Herman Plaza, where OccupySF is camped, is technically under the jurisdiction of the Recreation and Park Department, that ordinance could be enforced.

But let’s be serious: The encampment endangered nobody, and if any Rec-Park officials had actually complained, the police couldn’t provide their names. This was all about rousting a protest against corporate greed and economic injustice. It came with police batons, several beatings and five arrests.

And the mayor of what many call the most liberal city in America hasn’t said a word. Mayor Ed Lee was clearly consulted on the raid, clearly approved it — and now becomes unique among the chief executives of big cities across the country, most of whom have worked to find ways to avoid police confrontations.

David Chiu, the president of the Board of Supervisors, issued a ridiculous statement saying that “Both the Occupy SF protesters and the San Francisco Police Department need to redouble their efforts to avoid confrontations like the ones we saw last night.” No: The protesters didn’t start it, didn’t provoke it, didn’t want it — and frankly, did their best to avoid it. The crackdown is all about the folks at City Hall trying to get rid of one of the most important political actions in at least a decade — and doing it with riot police.

This is what the civility and compromise so touted by Mayor Lee and Board President Chiu looks like. And it’s a disgrace.

In Oakland, where the encampment at Frank Ogawa Plaza, renamed Oscar Grant Plaza for the event, has far more people than Occupy SF, city officials approached the activists and offered to issue whatever permits were needed. Mayor Jean Quan visited the general assembly, waited her turn to speak, and then politely asked the group not to damage the somewhat fragile old oak tree on the site. In deference to her wishes, the group surrounded the tree with a fence.

In New York, the private owner of the park where Occupy Wall Street is camped agreed not to evict the demonstrators — or even move some of them to all for a regular park cleaning.

Why is San Francisco acting so hostile? Is this not a city with a reputation for political activism and tolerance? Is it really that big a problem to allow activists to peacefully occupy public space to denounce the greatest corporate thievery in a generation?

San Francisco ought to be supporting the OccupySF movement, not harassing it. Lee should immediately call off the police raids. The Board of Supervisors should have a hearing on this, bring Police Chief Greg Suhr, Mayor Lee and representatives of Rec-Park and the Department of Public Health and work out a solution that doesn’t involve repeatedly rousting the protesters in the middle of the night. And if this continues, perhaps OccupySF should move to the plaza in front of City Hall.

Sup. John Avalos is the only person at City Hall who is making an outspoken effort to protect the protest; he needs some support.

 

Mayor Lee and PG&E

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EDITORIAL Pacific Gas and Electric Company is the number one corporate criminal in San Francisco. The company’s malfeasance caused the deaths of eight people and destroyed an entire neighborhood in San Bruno last year. The National Transportation Safety Board, in a report issued August 30, denounced PG&E’s “integrity management program without integrity” and blasted the company’s efforts to “exploit weakness in a lax system of oversight.”

That doesn’t even address the fact that PG&E has been operating an illegal monopoly in San Francisco for more than 80 years, engaging in an ongoing criminal conspiracy to violate the federal Raker Act. Or the fact that the utility spent $50 million of ratepayer money on a ballot initiative aimed at eliminating consumer choice in the electricity market.

So why was Mayor Ed Lee out at a PG&E public relations event Sept. 1 praising the “great local corporation” as a “great company that gets it?”

Well, the mayor’s campaign press spokesperson, Tony Winnicker, says that PG&E was at the event to donate $250,000 to a program for at-risk youth, and that the mayor was only recognizing that, for all its flaws, the utility “also [does] something good for our public schools and low-income kids.”

That’s not enough, and that’s not acceptable — and the mayor should apologize to the residents of San Francisco, San Bruno and everyplace else in California where the giant corporation has done serious and lasting damage.

It’s nice that PG&E gave a contribution to a program that helps Soma kids learn to read and to play baseball. We support the RBI program and its goals. Never mind that the $250,000 is about 0.005 percent of the money that the utility spent trying to block public power in California. Never mind that PG&E pays such a low franchise fee that it robs of city of millions of annual tax dollars that could fund programs like this one. It still sounds like a large sum, and to the nonprofit program at Bessie Charmichael School, it is.

But there’s a reason PG&E gives money to community groups and programs like this all over town — it’s a way to buy support and respect. Corporate largess of this sort is a relatively cheap public relations strategy — and for the mayor not to see that is embarrassing.

It’s a particularly notable conflict of interest, too — Lee’s top patron and biggest political supporter, Willie Brown (who knows a bit about corruption himself) has been on PG&E’s payroll as a private attorney for the past several years, earning about $200,000 a year.

Most of the candidates for mayor have been taking a gentle approach to Lee, and that makes a certain amount of sense — in a ranked-choice voting environment, negative campaigning often backfires. But there’s nothing inappropriate about saying that the mayor of San Francisco has damaged his own reputation and the reputation of the city by allowing himself to be used at a PR tool by PG&E. Remember: He didn’t just show up and thank the utility for the money. He called PG&E a “great local corporation,” which is, quite simply, false. This ought to become an issue in the race, and Lee should be forced to explain his position on public power, his ties to Brown and PG&E and his willingness to put aside years of malfeasance in the name of a small contribution.

Editorial: Mayor Ed Lee: Keeping City Hall safe for PG&E

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Mayoral candidates Dennis Herrera, John Avalos and Leland Yee blast Lee’s pro-PG&E comments (in postscript)

Pacific Gas and Electric Company is the number one corporate criminal in San Francisco. The company’s malfeasance caused the deaths of eight people and destroyed an entire neighborhood in San Bruno last year. The National Transportation Safety Board, in a report issued August 30, denounced PG&E’s “integrity management program without integrity” and blasted the company’s efforts to “exploit weakness in a lax system of oversight.”

That doesn’t even address the fact that PG&E has been operating an illegal monopoly in San Francisco for more than 80 years, engaging in an ongoing criminal conspiracy to violate the federal Raker Act. Or the fact that the utility spent $50 million of ratepayer money on a ballot initiative aimed at eliminating consumer choice in the electricity market.

So why was Mayor Ed Lee out at a PG&E public relations event Sept. 1 praising the “great local corporation” as a “great company that gets it?”

Well, the mayor’s campaign press spokesperson, Tony Winnicker, says that PG&E was at the event to donate $250,000 to a program for at-risk youth, and that the mayor was only recognizing that, for all its flaws, the utility “also [does] something good for our public schools and low-income kids.”

That’s not enough, and that’s not acceptable — and the mayor should apologize to the residents of San Francisco, San Bruno and everyplace else in California where the giant corporation has done serious and lasting damage.

It’s nice that PG&E gave a contribution to a program that helps Soma kids learn to read and to play baseball. We support the RBI program and its goals. Never mind that the $250,000 is about 0.005 percent of the money that the utility spent trying to block public power in California. Never mind that PG&E pays such a low franchise fee that it robs of city of millions of annual tax dollars that could fund programs like this one. It still sounds like a large sum, and to the nonprofit program at Bessie Charmichael School, it is.

But there’s a reason PG&E gives money to community groups and programs like this all over town — it’s a way to buy support and respect. Corporate largess of this sort is a relatively cheap public relations strategy — and for the mayor not to see that is embarrassing.

It’s a particularly notable conflict of interest, too — Lee’s top patron and biggest political supporter, Willie Brown (who knows a bit about corruption himself) has been on PG&E’s payroll as a private attorney for the past several years, earning about $200,000 a year.

Most of the candidates for mayor have been taking a gentle approach to Lee, and that makes a certain amount of sense — in a ranked-choice voting environment, negative campaigning often backfires. But there’s nothing inappropriate about saying that the mayor of San Francisco has damaged his own reputation and the reputation of the city by allowing himself to be used at a PR tool by PG&E. Remember: He didn’t just show up and thank the utility for the money. He called PG&E a “great local corporation,” which is, quite simply, false. This ought to become an issue in the race, and Lee should be forced to explain his position on public power, his ties to Brown and PG&E, his positon on  community choice aggregation, his willingness to kick  the PG&E-friendly  commissioners off the PUC and appoint credible public power advocates  and to put aside decades  of  City Hall malfeasance in the name of a small contribution.

P.S. As the Sept. 2 Examiner put it neatly in its headline, “Mayor, PG&E engage in baseball diplomacy, Utility donates to youth program in wake of NTSB criticism.”
Amy Crawford’s excellent heads-up  story noted that Lee “also heaped praise on PG&E, which announced a $250,000 loan to RBI “

Then she quoted Lee as saying without gulping or blushing, “Isn’t  that a wonderful contribution from a great local corporation? They’re a great company that gets it.”

Crawford put the quote in the proper context: “PG&E”s generosity came just two days after the National Transportation Safety Board blamed it for a deadly San Bruno gas line explosion one year ago.  The blast and subsequent fire destroyed a neighborhood, killing eight.”

As usual, PG&E downplayed the tragedy by calling it all just a “coincidence.”  She quoted Joe Molica, the PG&E spokesman, as saying,  “We’re really here to talk about kids.” Crawford wrote that Molica declined to “discuss the damning criticism.”  Three mayoral candiates promptly blasted Lee for his telling remarks. Three candidates for mayor promptly blasted Lee’s pro-PG&E remarks.

City Attorney Dennis Herrera  said the next day  that  “Ed Lee’s lavish praise for PG&E as ‘a great corporation’ on the eve of the one-year anniversary of the San Bruno tragedy, just days after federal regulators blamed the utility for a ‘litany of failures’ that claimed eight lives, is unconscionable,” said Herrera. “It shows insensitivity to victims’ families, and poor judgment for allowing his office to be used as a corporate PR tool. No less troubling, it ignores the serious work my office and others have done to protect San Franciscans from PG&E’s negligence, to prevent further explosions like those in San Bruno last year and in Cupertino on Wednesday. The interim Mayor should reassess his laudatory view of PG&E, and apologize to San Bruno victims’ families.”. http://herreraformayor.com/2011/09/herrera-criticizes-ed-lees-lavish-praise-pge-eve-oneyear-anniversary-san-bruno-blast/

Sup. John Avalos also  said the next day  that  “Ed Lee called PG&E a “great corporation” yesterday–a great corporation who spent $50 million last year trying to pass a ballot measure that would ensure their monopoly in places like San Francisco instead of repairing and inspecting pipes like the one that caused this terrible destruction.  Now this “great” corporation wants its customers to foot the bills for its negligence and bad practices?  Ed Lee says that this corporation “gets it.”  PG&E seem to “get” that a symbolic donation to a charity at the height of their unpopularity might help their rate-payers forget the catastrophic results of their negligence and bad practices ”  http://avalosformayor.org/2011/09/breaking-ed-lee-praises-pge-for-being-great-avalos-responds/s

State Sen. Leland Yee later  said that  “Obviously Ed Lee doesn’t understand that words matter. Eight of my constituents died and dozens lost their homes a year ago, and that is why I passed legislation to help those affected families try rebuilding their lives and why I am now pushing legislation to hold PG&E accountable. Rather than praising PG&E, the interim mayor should be calling on the Governor to sign the numerous bills to force the private utility to do what they have failed to do for decades – proper technology, inspection, and safety.”

And so Mayor  Lee has publicly demonstrated that he doesn’t get it and that he is poised to wallow in the Willie Brown sleaze of keeping City Hall safe for PG&E and its allies. Let’s keep the pressure on.  B3

 

 

 

 

 

The mayor loves PG&E

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I almost couldn’t believe it — the same week that the feds came down and essentially called Pacific Gas and Electric Co. a crew of incompetent crooks, Mayor Ed Lee goes to a PG&E PR event and talks about what a great company it is. He actually said PG&E was “a great company that gets it.”


What?


PG&E kills people, blows up houses, tries to block consumer choice, screws the city out of millions of dollars — and then uses some of its vast cash flow, which comes out of all of our pockets, to improve its image in the community by giving some money to a nonprofit that helps kids learn to read and play baseball. Nice that the company can cough up $250,000 — which is about .005% of the $50 million the company spent to block public power efforts. Thanks, guys. Sweet of you.


Listen: This sort of stunt is cheap PR for the utility. I’m happy that RBI got some money, but that doesn’t excuse what the city’s greatest corporate criminal has done — and it shouldn’t buy the mayor’s praise.


City Attorney (and mayoral candidate) Dennis Herrera was outraged. He issued a statement this morning saying


“Ed Lee’s lavish praise for PG&E as ‘a great corporation’ on the eve of the one-year anniversary of the San Bruno tragedy, just days after federal regulators blamed the utility for a ‘litany of failures’ that claimed eight lives, is unconscionable,” said Herrera.  “It shows insensitivity to victims’ families, and poor judgment for allowing his office to be used as a corporate PR tool.  No less troubling, it ignores the serious work my office and others have done to protect San Franciscans from PG&E’s negligence, to prevent further explosions like those in San Bruno last year and in Cupertino on Wednesday.  The interim Mayor should reassess his laudatory view of PG&E, and apologize to San Bruno victims’ families.”


Kind of obvious, no? Well, not according to the mayor, whose campaign spokesman, Tony Winnicker, had this to say:


This is just another political cheap shot from the City Attorney. Ed Lee was one of the first people to hold PG&E accountable for the condition of its infrastructure in SF and witnessed first hand the devastation and suffering caused by PG&E’s negligence in San Bruno within days of the blast. Holding PG&E accountable for the loss and suffering they’ve caused doesn’t mean you shouldn’t recognize when they also do something good for our public schools and low-income kids. We wish more local companies would get it and support our public schools and low-income kids, and THAT is what Mayor Lee was talking about.


And if there’s anyone who should apologize in this instance, it is Dennis Herrera for shamelessly using the victims of the San Bruno blast and the students of Bessie Carmichael as fodder for his political attacks on Mayor Lee.


Actually, I think that the fact that the company is a corporate criminal should, indeed, be a factor in recognizing it for trying to buy goodwill in the community. But as for Herrera, when I told him about Winnicker’s statement, he went a bit further:


“The mayor should understand the importance and impact his words have and what the appropriate context might be for his complements for a corporate citizen’s contributions.”


Spoken like a lawyer, but you get the point: This was really stupid, inappropriate and embarassing.


You wonder how PG&E got Lee to this event — although you don’t have to wonder too much. Lee’s pal Willie Brown is on a PG&E retainer at about $200,000 a year.


John Avalos has also weighed in on this, releasing a statement that makes all the points:


Ed Lee called PG&E a “great corporation” yesterday–a great corporation who spent $50 million last year trying to pass a ballot measure that would ensure their monopoly in places like San Francisco instead of repairing and inspecting pipes like the one that caused this terrible destruction.  Now this “great” corporation want its customers to foot the bills for its negligence and bad practices?  Ed Lee says that this corporation “gets it.”  PG&E seem to “get” that a symbolic donation to a charity at the height of their unpopularity might help their rate-payers forget the catastrophic results of their negligence and bad practices.


The residents of that neighborhood in San Bruno will not forget. The families of those who lost their lives that day will not forget. And anyone who fought to defeat Proposition 16, in an effort to maintain a city’s right to produce their own power won’t forget the blatant cynicism of this corporation.


I’m deeply disappointed, and I would like Mayor Lee to tell San Franciscans what makes this corporation “great” and what it is besides insider politics and business as usual that PG&E “gets.”


So far, the rest of the candidates have been a bit shy about going directly after the mayor. It’s about time they started.

Editorial: Step up to save CCA and take on PG&E

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Two things became abundantly clear at the San Francisco Public Utilities Commission meeting July 26th: The Community Choice Aggregation program is off track — and General Manager Ed Harrington has no interest in making in work. The supervisors need to move aggressively to save CCA.

Since 2007, when a draft implementation plan was released, the goals of the program — which is supposed to offer a cleaner alternative to Pacific Gas and Electric Co. — have shifted fairly dramatically. No longer does the plan seek to meet PG&E’s rates. No longer is it aimed at the entire city. And the PUC is putting most of its effort into a short-term contract to buy green power from Shell Energy North America — and all-but ignoring the more important moves to build a publicly owned energy-generation infrastructure.

CCA, which allows cities to buy power in bulk and resell it (along existing private utility lines) to customers, is a step in the right direction. The program now before the PUC would put San Francisco in the public power business — to a degree. But as the financial projections for the program demonstrate, the real savings and the real revenue won’t come until San Francisco replaces PG&E as the owner and operator of the local grid. A full-scale public power system would allow the city to both increase renewable power and cut rates — and would bring hundreds of millions into the treasury in the process (see “Mud Money,” 6/26/08).

Still, CCA offers many benefits — including the chance for the city to build local renewable energy facilities. And that’s where the PUC’s efforts ought to be focused.

During discussion of the proposed contract July 26th, Harrington was largely negative and talked repeatedly as if he didn’t think the original program could work. He kept saying that renewable power was more costly (true, today — but not after the city starts building its own facilities). He said that the goals the “advocates” (who include a majority of the Board of Supervisors) have demanded were unrealistic. And most of the commissioners seemed clueless.

That’s a terrible way to launch one of the most important environmental and financial initiatives in modern San Francisco history. Marin County is already well on the way to creating a working CCA system. Other counties are moving forward. And San Francisco, the only city in the nation with a federal mandate for public power, can’t get its civic act together.

The supervisors need to get involved, quickly. The Local Agency Formation Commission, which is overseeing this project, should haul Harrington in for a hearing as soon as possible. Among other things, the LAFCO members should ask why Harrington is so determined that the project won’t work; why his proposal is geared to a small number of residents and businesses who would face higher rates for power; and what his plans are to create a local energy generation infrastructure that over the long run would be dramatically cheaper and greener than anything PG&E will be able to offer.

The problems with CCA reflect the immense challenges of putting this program in the hands of a commission a majority of whose members were appointed by a mayor who opposed public power, managed by someone who has never supported municipalization efforts. Harrington and the SFPUC appear to be setting CCA up to fail. The supervisors need to step in before that happens.