Budget & Finance Committee to discuss solar plant

Pub date March 17, 2009
WriterRebecca Bowe
SectionPolitics Blog

By Rebecca Bowe

A proposed solar-power project slated for discussion at the city’s Budget & Finance Committee on March 18 could help San Francisco edge a little closer to its greenhouse-gas reduction goals. But instead of owning and operating the solar photovoltaic system itself, the San Francisco Public Utilities Commission would enter into a long-term contract with a private entity – and the new approach has raised questions from committee members.

Supervisor Carmen Chu and Mayor Gavin Newsom proposed the deal. The idea is to establish a 25-year power purchase agreement between the SFPUC and Recurrent Energy for a solar-photovoltaic power plant. The large-scale system would be constructed atop a 480,000-square foot rooftop at the SFPUC’s Sunset Reservoir. The city would lease the space to the company for $1 a year, and the SFPUC would agree to purchase power from Recurrent Energy at a rate estimated to be just under $2 million a year. According to a report prepared by the city’s Budget Analyst’s Office, the cost for electricity over the entire 25-year stretch would come out to about $68.5 million.