Clean Energy

Editorial: The next Gavin Newsom

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EDITORIAL It’s possible that Mayor Gavin Newsom took a long look at himself, his life, and his future last week and decided that politics — intense, 24/7/365 politics — wasn’t what he wanted right now. It’s possible (as Randy Shaw noted in Beyondchron.org) that Newsom "now joins longtime adversary Chris Daly in putting family relationships ahead of one’s political career." It’s possible that he never really wanted a future in electoral politics and was driven to run for governor less by personal ambition than by the desire of his advisors to see him in a higher political role.

In that case, Newsom has a responsibility to do the best job he can over the final two years of his term as mayor, then step away and find something else to do with his life.

But since it’s also possible — even likely — that Newsom still hopes to have a political career, and that his decision to drop out of the governor’s race was as much about his failure to gain any traction as it was about his family obligations, it’s worth talking about why his campaign failed and what he can and should do next.

For starters, Newsom never expected to beat Attorney General Jerry Brown in the big-donor fundraising battle. He was hoping to put together a grassroots operation, to mobilize the Obama constituency, and build a war chest with tens of thousands of small donors organized through social media and technology. And that kind of effort could have worked — Brown has name recognition and money, but not much else. It’s hard to imagine large masses of young activists donating time and energy to his primary campaign.

The problem was, those legions of California activists weren’t terribly excited about Newsom either. And there are good reasons for that — reasons Newsom needs to understand if he wants to run for statewide elected office in the future.

If the real Gavin Newsom had been anything like the campaign picture his handlers tried to present, he would have been a serious candidate. Newsom the candidate was a leader who brought San Franciscans together to get things accomplished. He was a progressive thinker who created universal health care and an effective budget process with a rainy day fund that prevented teacher layoffs. He was bold enough to challenge federal and state law on same-sex marriage and demand equality for all.

But Newsom the mayor was actually a snippy politician who refused to work with the Board of Supervisors and would never engage his opponents. He was great at press releases but short on accomplishments — universal health care and the rainy day fund were projects put together by Tom Ammiano, one of the supervisors the mayor disdained, who is now a state Assembly member. He refused to take a lead role fighting Pacific Gas and Electric Co. to promote clean energy and public power. And for all his success in moving same-sex marriage forward, he never once managed to bring that kind of progressive energy or policy-making to economic issues. His budget this year was the same as Republican Gov. Arnold Schwarzenegger’s budget — cuts and fees only. No new taxes.

As a result, the progressives and independent voters in his own town didn’t support his campaign — and without the environmentalists, labor, tenants, and progressive elected officials from San Francisco behind him, there was no way he could generate an honest grassroots movement in a Democratic primary.

Now he’s back from the campaign trail — and he has two years to pick up on the lessons of his ignominious political collapse. If he wants any kind of a political future, he needs to change. First, he needs to start engaging and working with the supervisors — even the ones who disagree with him. (Showing up for "question time" would be a huge step). He needs to take the city’s structural budget deficit seriously and present plans for progressive taxes to help close it. He needs to show he can take on big powerful local interests — PG&E, for example — by opposing the utility’s anti-public power initiative and putting his political capital on the line to support community choice aggregation.

Newsom the imperial mayor has, we hope, been a bit humbled. Let’s see if he comes out of this chapter as an embittered, angry (and ultimately unsuccessful) mayor committed to punishing his enemies — or a serious city leader who can live up to his own hype.

SF seeks green power alternatives to PG&E

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By Steven T. Jones and Rebecca Bowe

With a unanimous vote by the Board of Supervisors today, San Francisco took a big step into the clean energy business, approving the issuance of a Request for Proposals for projects that will be part of the Clean Power SF program that will compete for customers with Pacific Gas & Electric Co.

The city’s version of the so-called Community Choice Aggregation program has involved “seven years of preparing San Francisco to get into the green energy business,” said Sup. Ross Mirkarimi, who has shepherded the program as chair of the Local Agency Formation Commission (LAFCo).

While PG&E has relentlessly attacked CCA efforts, both locally and through a statewide initiative campaign for would require a two-thirds popular vote for counties to create them, the 11-0 vote here seems to indicate Clean Power SF isn’t as controversial as PG&E would like people to believe.

“This step is a very important step and it’s been an eye-opening experience to serve on LAFCo,” Sup. Bevan Dufty, referring to opposition from PG&E and some of its business community allies and adding, “When the public understands the issues, they like competition and a more sustainable city.”

PG&E ballot initiative clears a hurdle

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By Rebecca Bowe

The Guardian has received several accounts that paid signature gatherers for a ballot initiative backed by Pacific Gas & Electric Co. that could darken prospects statewide for public-power programs were pitching it in a way that, at best, wasn’t entirely straightforward. And by several accounts, the petition has stopped circulating because proponents successfully gathered the 694,354 signatures needed before it can qualify for the ballot.

One voter wrote to say that a canvasser approached him in Pasadena seeking signatures for two different petitions: the PG&E-backed initiative, and a proposal to legalize and tax marijuana. Once he signed the petition to legalize pot, she asked him to sign the PG&E petition as if it were merely a second copy, he charged. She later stated that she had been instructed by her supervisor to do so, according to his account.

The Guardian also got reports that signature gatherers have denied that the petition was funded by PG&E, told people that signing it would result in lower utility rates, or described it as an initiative to promote clean energy in California.

In reality, the initiative, which was previously titled the Taxpayers Right to Vote Act, would require a two-thirds majority vote before any community choice aggregation program could be funded or implemented. This could jeopardize San Francisco’s fledgling CleanPower SF, a community choice aggregation program that would provide San Franciscans with electricity from cleaner energy sources. The Board of Supervisors voted 10-1 to oppose the initiative.

While voters can — and should — read the title and summary of a proposed initiative before signing on the dotted line, canvassers who are paid by the signature clearly have an incentive to speed the process along and frame a proposal in a favorable light. And if signature gatherers stand outside health food stores in the Bay Area asking voters to support legalizing marijuana and developing clean energy, it’s an easy sell.

Energy efficiency gets a boost, but foxes still guard the hen house

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By Rebecca Bowe

electric meter.jpg

The California Public Utilities Commission (CPUC) approved a $3.1 billion budget yesterday for statewide energy efficiency programs that will be in place until 2012. California’s powerful investor-owned utilities — Pacific Gas & Electric Company, Southern California Edison, San Diego Gas and Electric Company, and Southern California Gas Company — are in charge of implementing the programs, while the funding is derived from ratepayers.

While the decision marks the creation of the largest energy-efficiency program in the country, some question the wisdom of the colossal investment, because it relies on utility companies to implement dramatic reductions in energy use.

It’s the greatest financial contribution the state utility commission has ever pledged toward energy efficiency. According to the CPUC, the potential energy savings will negate the need for three new 500-megawatt power plants, and avoid 3 million tons of greenhouse gas emissions. The funding from this decision could create between 15,000 and 18,000 green jobs, the CPUC estimates.

The decision will provide $260 million for local efforts such as municipal building retrofits. It also requires utilities to track progress toward goals and strategies established in a long-term statewide plan for reducing energy use. Included in the effort is an ambitious home-retrofit program, which sets a goal of 20 percent energy savings for up to 130,000 homes.

“This investment in California’s clean energy economy is just what we need to create new jobs for our communities and fight global warming pollution,” said Lara Ettenson, director of California Energy Efficiency Policy at the Natural Resources Defense Council (NRDC), a prominent environmental organization.

Not everyone shares NRDC’s optimism, however.

The Division of Ratepayer Advocates (DRA), an independent consumer advocacy division of the CPUC, warned that the powerful utility companies should be closely monitored to see how they make use of such a tremendous sum.

In a statement released this morning, the DRA highlighted “a continuing need for stronger mechanisms to ensure transparency and accountability in the utilities’ use of the billions of dollars of ratepayer money.” Utility giant PG&E has been criticized in the past for misuse of energy-efficiency funds.

Why Sarah Palin resigned

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Text by Sarah Phelan

As Moveon.org is pointing out, Palin’s op-ed in today’s Washington Post is a pretty strong indication of why she resigned: Sarah wants to become the pit bull for Big Coal and Big Oil, and scare folks from supporting a stronger clean energy bill with her misinformation about “energy taxes.”

Palin’s op-ed-is also further evidence that Sarah is not throwing in the towel on politics, didn’t resign because of a mystery lover in her caribou closet, and is instead getting ready to seriously focus on her 2012 presidential bid.

Guess she’ll be finding support from those who don’t believe climate change is connected to human activity, want to drill in the Arctic National Wildlife Refuge, and would like to otherwise accelerate the destruction of the planet, so they can extract natural resources as fast as possible and make lots of money in the process.

Unfortunately, there is plenty of big money happy to accommodate someone like Sarah Palin.

So, give up on the dream that Palin is leaving the scene–and find the best strategy to counter her kind of campaign. And start doing it now.

PG&E attacks consumer choice

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rebeccab@sfbg.com

A ballot initiative backed by Pacific Gas and Electric Co. could amount to a death sentence for community choice aggregation (CCA) and expanded public power in California.

Dubbed the Taxpayers Right to Vote Act, the proposed initiative would require a two-thirds majority vote at the ballot before any local government could establish a CCA program, use public funding to implement a plan to become a CCA provider, or expand electric service to new territory or new customers.

The new hurdle would make it very difficult for a local government to move forward with a CCA, while at the same time making it much easier for a utility to defeat public power at the ballot.

Signed into state law in 2002, CCA allows local governments to buy up blocks of power to sell to residents, making it possible for cities and counties to set up alternatives to private utilities such as PG&E and, in many cases, to offer electricity generated by clean, renewable power sources.

The initiative is in its earliest stages, and it likely would not be placed on the state ballot until the June 2010 election. At this point, "it’s unclear how much of a campaign it’s going to be," according to Greg Larsen of the Sacramento public relations firm Larsen Cazanis, a spokesperson for the effort. "It’s a long way off."

That hasn’t stopped local CCA supporters from sounding alarm bells. "Urgent/Bad! PG&E State Ballot Measure To Kill Public Power & CCA," public power activist Eric Brooks wrote in the subject line of a widely disseminated e-mail last week. "It’s red alert time boys and girls," he wrote, saying the proposal "will kill all new Public Power and Community Choice Aggregation projects statewide."

Brooks isn’t alone: everyone the Guardian spoke with who is involved in the creation of San Francisco’s CCA voiced concern that the proposal could kill any future community choice efforts.

The proposed initiative was submitted to the California Attorney General’s office May 28 with the contact listed as the Sacramento law firm Nielsen, Merksamer, Parrinello, Mueller & Naylor, a powerful player with a long history of working with PG&E on ballot initiatives. Larsen confirmed that PG&E had provided the $200 filing fee, the only amount spent so far on the embryonic proposal.

The official proponent of the initiative is Robert Lee Pence, apparently the same person who was listed as an opponent of Proposition 80, a 2005 ballot measure that dealt with utility regulation. Opposition to Prop. 80 was heavily funded by PG&E and other utilities, and the initiative failed by a wide margin.

Pence’s group, Californians for Reliable Electricity, listed Steve Lucas as a contact on 2005 campaign documents. Lucas is also listed as the point person at Nielsen, Merksamer, Parrinello, Mueller & Naylor for questions regarding the Taxpayers Right to Vote Act.

The address listed for the organization is the same as that of Townsend, Raimundo, Besler and Usher — a Sacramento political consulting firm that also has a long history of working with PG&E on political campaigns. When asked about the PR firm’s role in the Taxpayer Right to Vote Act, Larsen acknowledged that they "may be involved as the campaign goes forward," but cautioned that any discussion so far has been preliminary.

The rationale behind the initiative is to protect taxpayers, Larsen said, because CCA programs "are major issues that communities undertake and require millions or billions of public dollars." The proposed initiative, he said, seeks to "ensure that voters — and frankly, their descendents — who will wind up being responsible for these programs have a say." If the measure passes, Larsen added, voters could still approve CCA programs — but with two-thirds of the vote, a supermajority that he contends is "staying in line with many other California requirements."

California Sen. Mark Leno, however, has a very different opinion. "I would hope that Californians would have come to understand that two-thirds vote thresholds are probably more responsible for damage to the state of California in the past 30 years than any other single factor," he said. "To hand a small minority controlling power is anti-democratic. This must be defeated." Leno also said he believes that the initiative would have drastic consequences for CCA programs if it passes.

Meanwhile, local CCA supporters say there is more to this than merely sticking up for taxpayers’ rights. If programs like Clean Power SF — the CCA initiative currently being developed in San Francisco — are fully implemented, then PG&E, which makes good money from its monopoly status, would face some actual competition. Naturally, the powerful utility would have an incentive to eliminate the alternative altogether.

Under the current system, PG&E "has to rely on the elected officials to kill CCA, and its much harder … to do that," says John Rizzo of the San Francisco Bay Chapter of the Sierra Club. But if the Taxpayers Right to Vote Act is enshrined in state law, "they could just pour in money and spread propaganda. Particularly the two-thirds requirement is just outrageous — it basically makes it impossible" to secure approval for any step toward CCA implementation.

"It’s a nasty ballot initiative," Mike Campbell, director of San Francisco’s CCA at the Public Utilities Commission, told us. "I think it’s clearly aimed at the heart of CCA." Campbell added that while he has been in discussion with SFPUC staff and others involved in hammering out Clean Power SF, he wasn’t at liberty to discuss a strategy for fighting the proposed initiative just yet.

Ross Mirkarimi, who chairs the city’s Local Agency Formation Commission — the body tasked with working in tandem with the SFPUC to implement San Francisco’s CCA — called the proposal "heinous — and yet I expect nothing less from PG&E.

"They can try to win by well-funded misinformation blitzkrieg," Mirkarimi noted. "If they’re able to spend $10 million without blinking here in San Francisco [on defeating a public power measure], they’re poised to spend tens of millions on this. As a state battleground, this elevates the fight that much more. We have to act in solidarity with other municipalities. We should be well-armed in repudiation of this effort."

There may be ways to attack the initiative in advance. The CCA legislation bars private utilities from seeking to undermine local CCA efforts. Assembly Member Tom Ammiano told us that the Legislature should look at how PG&E could be blocked from mounting a statewide effort to kill CCAs. "I think there’s some potential there," he said.

Julian Davis, who chaired the Prop. H campaign for public power last year, said he found the proposal very worrisome. "If you shut down community choice, you’re shutting down one of the major vehicles for clean energy," he said. To Davis, the initiative highlights "a disturbing trend of corporate America finding ever-more clever ways of tying the hand of local government in general. You know they’ll dump millions into this," he added. "The ultimate irony here is that none of us have the right to vote on anything PG&E does. None of us has a seat at the PG&E board table. It’s doublespeak."

Rachel Buhner contributed to this report.

PG&E’s latest malevolence

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By Steven T. Jones
shameonpge.jpg
Image of environment justice protest from Greenaction.org

As the Bay Guardian has documented for over 40 years, Pacific Gas & Electric Company has a sordid history of malevolent actions, including illegally cheating San Franciscans out of public power (from its initial violation of the federal Raker Act to its record-setting sums spent to defeat public power initiatives), corrupting local politics, lobbying against higher clean energy standards and consumer empower measures at all levels of government, greenwashing its dirty power portfolio (including the state’s largest nuclear power plant), transferring billions in ratepayer money to its parent company just before its utility declared bankruptcy (the lawsuit over which was recently dropped by Attorney General Jerry Brown, to his shame), screwing the city and ratepayers and then aggressively fighting the myriad resulting lawsuits, and on and on.

But now, we can add to the list mistreatment of its own employees. PG&E has reportedly ended negotiations with its Engineers and Scientists of California Local 20 labor union and announced its intention to unilaterally implement its final offer. The move has enraged both that union and its brothers and sisters on the larger House of Labor, which will be rallying and picketing outside PG&E headquarters at 77 Beale Street tomorrow at noon.

Recurrent debacle

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By Julian Davis

(Julian Davis is on the board of San Francisco Tomorrow, an urban environmental organization. He chaired last November’s Clean Energy campaign, prop H.)

In the wake of Tuesday’s vote on the Recurrent solar power deal for the Sunset Reservoir, long time progressive activists have to ask themselves, what happened?

A widespread commitment to positive government courses through the veins of San Francisco’s political community. Whether it’s defending the public health care system against cuts or the perennial advocacy of public power, one thing that unites progressives is a belief that government should work for the people and that corporate special interests have no place dictating or writing the terms at City Hall.

Recurrent Energy project passed on 7-4 vote

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By Rebecca Bowe

The Board of Supervisors voted 7 to 4 this afternoon to approve a 25-year power purchase agreement with Recurrent Energy, a private firm that plans to construct a 5-megawatt photovoltaic array at the Sunset Reservoir. Supervisors John Avalos, David Campos, Chris Daly and Ross Mirkarimi voted against the agreement, voicing concerns that the city would be locked into a bad financial deal for years to come and asserting that the city could strike a better deal with Recurrent. Part of the problem, Mirkarimi noted, is that the city would be locked into paying a fixed price for solar energy even if the going rate drops significantly in coming years.

The Guardian has weighed in on the project at several junctures. While everyone at the table believes that the end goal is laudable – adding 5 megawatts of clean energy to the city’s renewable portfolio – Supervisors Mirkarimi and Campos have expressed opposition to contract terms that they say would ultimately sell San Francisco ratepayers short. At a joint meeting between LAFCo and the SFPUC on April 24, Mirkarimi also worried that the Recurrent Energy project could undercut the efforts of San Francisco’s fledgling Community Choice Aggregation initiative.

The power purchase agreement was originally put forth by Mayor Gavin Newsom and Supervisor Carmen Chu. Chu advocated strongly for it during today’s meeting, saying she believed it was a good deal and noting that it would create 71 jobs.

Daly weighed in heavily against it, calling the deal a politicized “rush job.” The result, in his opinion, is that “we get electricity that is green, but it is too expensive to give anyone else the opportunity to do it too. … Going green doesn’t mean going green stupid. If it seems like gymnastics for a deal, there is a better way.”

Don’t drill here

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rebeccab@sfbg.com

GREEN CITY When U.S. Secretary of the Interior Ken Salazar looked out at a sea of faces during a San Francisco public hearing April 16, a band of activists dressed as polar bears, sea turtles, and other marine creatures stood out from the rest. Their message, also articulated by a host of federal and state-elected officials, was unequivocally clear: no new oil and gas drilling off the California coast.

Waving a thick document in the air, Salazar explained that he’d inherited a five-year plan from the Bush administration to award new leases for oil and gas drilling in the federally controlled outer continental shelf, which comprises some 1.7 billion underwater acres off the Atlantic and Pacific coasts, the Gulf of Mexico, and Alaska.

Rather than move the policy as planned, Salazar extended public comment for six months, met with stakeholders in each region, and placed greater emphasis on developing offshore renewable energy. The San Francisco public hearing was the last in a series of four that Salazar attended.

"One of the significant issues that is so important to President Obama is that we move forward with a new energy frontier," Salazar said. He advocated embracing offshore wind and other renewable alternatives as part of a "comprehensive energy plan going forward." Yet Salazar also indicated that future plans for the nation’s energy mix were "not to the exclusion of oil and gas," and mentioned that opportunities for "clean coal" technology should also be considered.

Under the five-year plan, three new leases are proposed off California’s coast — two in the south, and one in the Point Arena Basin, an underwater swath near Fort Bragg. Elected officials unanimously opposed any new offshore petroleum development. "Our state clearly is saying to you today, no," declared Sen. Barbara Boxer, chair of the Senate Environment and Public Works Committee. "Instead of putting our California coast and economy in jeopardy, we need to look at … green technology which will bring us new jobs."

Lt. Gov. John Garamendi sounded a similar note, saying the billions that would be invested in offshore oil could be put toward advancing clean energy. Rep. Lynn Woolsey (D-Petaluma) highlighted the risk of oil spills around the Point Arena Basin. "It could be turned from a wellspring of life into a death plume," she said. "This shimmering band of coast must be protected."

While nearly every testimony blasted new offshore oil development, the conversation brightened when Salazar asked for comments on renewable energy. According to estimates by the National Renewable Energy Laboratory, offshore wind in shallow areas could provide some 20 percent of the electricity needs of coastal states nationwide. Wave energy, while still under study, might one day generate enough electricity to power some 197 million homes per year, according to Department of the Interior estimates.

Most of the oil that could be extracted from the outer continental shelf would come from the Gulf of Mexico and Alaska, with some 10 billion barrels potentially available off the Pacific coast. Joe Sporano of the Western States Petroleum Association said offshore drilling could create jobs and limit dependence on foreign oil. Yet Boxer pointed out that, based on Energy Information Administration figures, drilling for oil across all areas would yield just 1 percent of the nation’s total oil consumption by 2030 — and it’s not believed to make a real difference in gas prices.

Richard Charter, government relations consultant with Defenders of Wildlife, seemed confident that California’s coast would be protected. "You have a new interior secretary for an administration that received California electoral votes … in a state that is pretty much single-minded in its position in terms of saving the coast," he said.

Charter’s optimism was helped by a recent federal appeals court ruling against the previous administration’s plan to award new offshore-drilling leases in the Arctic.

So now, "whatever Secretary Salazar does will have his own stamp on it," Charter said. "In each of these hearings, it’s become apparent that the Obama administration may be coming around to a new approach."

Public comment for the offshore leasing plan ends in late September. Salazar told reporters that he expects a decision by the end of the year.

Energy deficiency

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More in this issue:

>>Fed money for green jobs?

>>Green living resource guide

rebeccab@sfbg.com

As the window of opportunity for averting the worst-case global warming scenarios narrows, wise use of energy seems increasingly urgent. So millions of dollars in state and federal funding and significant contributions from utility customers are devoted each year to improving energy efficiency in California.

It’s a crucial program designed to reduce consumption and planet-damaging emissions and eliminate the need for new fossil-fuel burning power plants. Yet the state’s energy-efficiency programs are often run by investor-owned utility companies, such as Pacific Gas & Electric, that have been missing efficiency targets yet demanding ever more public money anyway.

Critics say the programs would yield more energy savings on the dollar if local governments or nonprofits were in charge. The utilities have not only fought to maintain control of these programs, they’re now seeking even more taxpayer money by trying to claim federal economic stimulus funds.

Meanwhile, the San Francisco Public Utilities Commission is engaged in a long, slow process of rolling out an ambitious community choice aggregation (CCA) program, Clean Power SF, which would utilize 50 percent renewable energy and promote green technologies in the city.

While state law guarantees that energy-efficiency funding generated by San Franciscans could be funneled into Clean Power SF, it isn’t likely to happen without a fight from the state’s most powerful utility.

AN ‘A’ FOR EFFORT


Although PG&E and other utilities are entrusted with millions in ratepayers’ money to promote energy efficiency, independent analysis demonstrates that they’ve had limited success. But last December, they garnered rich rewards anyway, at ratepayers’ expense.

In 2007, the California Public Utilities Commission adopted a system to encourage utilities to strive for high energy efficiency standards. Utilities could receive hearty payouts for achieving a certain threshold of energy savings, the commission decided. Conversely, if the companies failed miserably, they’d be slapped with penalty fees. Rather than take the utilities’ word for it, the CPUC directed its Energy Division to inspect the companies’ energy efficiency program performance and report on it each year.

About a third of the funding for these programs is amassed with a mandatory fee on every ratepayer’s monthly energy bill, called the Public Goods Charge. This is combined with a second pot of ratepayer money and collected by utilities to fund initiatives such as rebates, light-bulb discounts, energy retrofits, and consumer-education drives. The program budget for all the utilities from 2006 through 2008 was around $2 billion. For the 2009 to 2011 program, the utilities are collectively seeking closer to $4 billion.

Last December, based on the utilities’ own claims that they’d hit the targets for the 2006 — 2007 program, the CPUC handed over nearly $82 million in incentive payments — with some $41 million going to PG&E. The commission accepted the utilities’ claims because the Energy Division’s verification report was behind schedule, and the utilities argued that this delay would postpone their payments and thus undermine the whole incentive.

At the same time, the commission noted, "We have profound concerns that accepting the [utilities’] proposal … would subject ratepayers to significant risk of overpayment." In an attempt to strike a balance, the CPUC voted to award $82 million rather than the $152.7 million that the utilities claimed they were owed.

But the independent report, which was finally released two months later, concluded that PG&E and two other utilities shouldn’t have been entitled to any incentive payments at all. Based on this analysis, they’d missed the targets.

The move drew criticism from groups like The Utilities Reform Network (TURN), Women’s Energy Matters, and the California Public Utilities Commission’s Division of Ratepayer Advocates, which charged that investor-owned utilities are more concerned about the payouts they receive for running these programs than maximizing energy savings.

"They didn’t seem troubled by the fact that they hadn’t met the goals. They were only troubled by the fact that they weren’t going to get the financial reward," said Mindy Spatt, communications director for the Utility Reform Network (TURN). "I suppose there’s a message in there about just how seriously they take energy efficiency."

Loretta Lynch, a former CPUC commissioner, told the Guardian that she’d been watching the proceedings closely. "They had already promised Wall Street they were going to get this money, and so they had to meet Wall Street’s expectations regardless of whether or not they met the technical requirements of the program," Lynch said.

The CPUC’s Division of Ratepayer Advocates opposed the decision to award the incentive money. "[The utilities] are being rewarded for something they say they’ve done, but that independent analysis shows they just didn’t do," DRA Regulatory Analyst Thomas Roberts told the Guardian. "It’s like rewarding a student for getting a D."

Part of the problem is that PG&E’s program relied heavily on giving away compact-fluorescent light bulbs, and then the utility inflated estimates for how much energy savings they would provide and how long they would last. In other words, CFLs are a good first step to energy conservation, but not enough to make the greatest strides in reducing demand.

Roberts also said PG&E often delivered the bulbs to what he called "free riders," or people who would’ve made the switch on their own. TURN once discovered a box of light bulbs posted on eBay by some crafty entrepreneurs who had purchased them at a discount, courtesy of PG&E. At that point, the bulbs could have wound up anywhere in the country, Spatt points out, instead of reducing electricity demand in California.

"There is no clear connection that we are not building new power plants due to energy efficiency programs," said Cheryl Cox, senior policy analyst and project manager for energy efficiency at the CPUC’s Division of Ratepayer Advocates. "And we do not appear to be on track to achieve long-term, persistent energy savings. Given the dependence of energy efficiency portfolios on short-term savings like lighting, it appears that the utilities would have to spend additional dollars to play catch-up — yet they persist on proposing the same old, non-progressive, CFL programs."

WHO’S IN CHARGE OF YOUR SURCHARGE?


For some, the incentive payouts provided new fuel for a longstanding argument that utilities shouldn’t be in charge of administering state-mandated energy efficiency programs in the first place. Barbara George, executive director of Women’s Energy Matters, points out that states with financially disinterested third parties managing energy efficiency measures tend to be more careful with the money they’re granted, resulting in more energy savings per dollar.

She points to a report completed by analyst Richard Estevez, which ranked 37 statewide energy efficiency programs by cost-effectiveness. "Non-utility implemented programs make up 18 out of the top 20 rankings; utility-implemented programs make up 15 out of the 17 poorest rankings," that report concludes.

Under the current system, "PG&E makes a profit on every dollar," says Lynch. "In addition, all of PG&E’s costs are covered. Then, of course, all the subcontractors’ costs are covered too, so it gets down to only 50 or 60 cents of every dollar that is actually going into programs. The rest of the money is going into PG&E’s profit, PG&E’s overhead, and the subcontractors’ overhead. Not surprisingly, if you’re a nonprofit or a government, you’re doing that service directly at no profit and lower administrative costs."

Paul Fenn, a consultant to Clean Power SF, sounds a similar note. In his view, PG&E "doesn’t want to reduce energy consumption. Why? Because every year, they go to their shareholders and they predict next year’s load growth. That’s their business. They burn gas, and they sell power. They’re a gas and electric company. The idea that a gas and electric company could be adequately incented to reduce their sales is naïve."

Fenn is the founder of Local Power, Inc. and the author of Assembly Bill 117 — a state bill passed in 2002 under the sponsorship of then-Assembly Member Carole Migden that allows municipalities to set up community choice aggregation programs. Local Power has been a key player in San Francisco’s own embryonic CCA.

AB 117 also gave cities the option to gain control of Public Goods Charge funds generated by their own ratepayers. In SF, that would mean funneling roughly $18 million annually into Clean Power SF’s energy efficiency budget.

Sup. Ross Mirkarimi, who chairs a committee overseeing the CCA implementation, told the Guardian he supports the idea. But he warned that the city probably wouldn’t be able to wrest the funding away from PG&E without a fight. "It’s completely appropriate for city government to be in charge of those funds," he says. "PG&E shouldn’t be in the driver’s seat with all that money anyway."

San Francisco is already hailed as a green city, but Clean Power SF, which has renewable energy as its centerpiece, would set a new standard for what cities can do to address climate change. The plan calls for 50 percent renewable energy, compared with PG&E’s energy mix of 11 to 12 percent renewable power. The SFPUC is slated to present CCA program plans to the state next year.

SFPUC’s Michael Campbell, the CCA program director, rejects the idea of going after Public Goods Charge funds just yet. "It’s premature to do that now," Campbell says. "About one-third of the energy efficiency dollars that PG&E collects … come from Public Goods Charge, and the other two-thirds are charges associated with procurement portions of customers’ bills. If a CCA were formed … to have an equal amount of dollars, we would need to have additional charges to CCA customers that would be associated with the energy portion of their bill."

Yet Fenn said applying to administer those funds is long overdue. Not knowing whether that $18 million is in place every year could derail the CCA bidding process, Fenn argues, since it would be difficult for prospective power suppliers to draft a plan if they lack clarity on the program budget.

The other problem, Fenn said, is that without the energy-efficiency funds, it would be harder for the city’s CCA to get its rates down low enough to compete with PG&E. Given the CCA is required to beat PG&E rates, it could make or break the success of the project.

"Energy efficiency is the cheapest resource," Fenn said. "It helps the economic feasibility of the portfolio by creating surplus revenue. If you’re just doing green supply, and not green load reduction, it’s going to be really hard not to pay more than PG&E."

BROUGHT TO YOU BY PG&E


While Clean Power SF lags, energy efficiency programs are percoutf8g throughout the city — usually touted by Mayor Gavin Newsom and funded through public-private partnerships with PG&E.

In a recent post on TriplePundit.com, Newsom announced the creation of an Existing Buildings Efficiency Task Force — composed of landlords, developers, PG&E, and other downtown interests — tasked with greening buildings and creating green jobs.

"The Task Force builds upon a great deal of work we’re doing already — taking full advantage of the $7 [million] to $11 million provided in energy efficiency block grants by the federal stimulus, leveraging our ongoing … partnership with PG&E, and working with private partners to create a San Francisco Clean Energy Fund," Newsom wrote.

A recent initiative to install energy efficient streetlights in the Tenderloin is the result of another PG&E partnership. While there’s no doubt that these programs will have positive results, they also serve to further entrench PG&E into citywide green initiatives, which render it more difficult for Clean Power SF to gain footing further down the road.

With federal stimulus money flowing into state coffers, the utilities are back at the table, recommending to the CPUC that some of the federal funding go into their existing energy-efficiency programs. "We believe that the Recovery Act or ARRA funds should work in conjunction with [investor-owned utility] programs to minimize potential customer confusion and leverage the success we have had with the programs," Marc Gaines, a representative for the state’s four investor-owned utilities, said during a recent All-Party CPUC meeting to discuss the stimulus funds. "Rather than competing with the programs, we would like to use ARRA funding to supplement existing energy efficiency [and other] programs."

Not so fast, countered George, who stood up to speak during the meeting. "We have to worry about if these funds are commingled with current programs, are the utilities going to rake off profits?" she wondered. "These funds need to be used for authorized purposes, and not for fraud, waste, error, and abuse. The energy efficiency programs have been used to fight public power and community choice efforts. The competition is brutal when it comes to the utilities."

T. Boone Pickens visits S.F.

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By Rebecca Bowe

T. Boone Pickens, 80, is a Republican billionaire living in Dallas whose spot-on predictions about the petroleum industry have earned him the nickname the “Oracle of Oil.” More recently, the founder and chairman of BP Capital Management has garnered media attention for reinventing himself as a proponent of clean energy. On March 25, hundreds of San Franciscans came out to the Intercontinental Mark Hopkins Hotel to listen to the former oilman discuss the Pickens Plan: a blueprint for curing America’s addiction to foreign oil.

Pickens launched his campaign last July with a slick Web site designed by one of the top brains behind Obama’s online presidential campaign. So far, some 2 million supporters have signed on, Pickens said. “I found out this,” he told a team of reporters shortly before his talk. “When I was a rich guy going to Washington trying to get something done, I got in to see everybody and they were all nice, but not much happened. Today, with 2 million people with me, I’m a hell of a lot more important when I go to Washington.”

A main component of his plan is the installation of thousands of wind turbines through the central corridor of the United States, harnessing what has been called the “Saudi Arabia of wind” to provide what Pickens estimates to be 20 percent of the nation’s electricity supply. To make it work, transmission lines must be constructed to move that power east and west. And according to his vision, domestic natural gas currently used to fire power plants can be utilized as a transportation fuel instead.

Money talks

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› news@sfbg.com

The economy’s a mess, and the housing crisis, financial meltdown, and skyrocketing unemployment rates have left a lot of San Franciscans short of cash. But the flow of big downtown money into political campaigns hasn’t slowed a bit.

In fact, a tally of all 2008 monetary and in-kind political contributions logged in the SF Ethics Commission Campaign Finance Database shows that even in the face of the worst financial crisis since the Great Depression, money spent on local political campaigns in the city swelled to a whopping $20.6 million. That grand total, which does not include loans or so-called "soft money" like independent expenditures, is higher than that of any previous year recorded in the Ethics database, which tracks campaign spending back to 1998.

A review of the entire database paints of picture of how influence money flows in San Francisco: Six of the top 10 donors over the past 10 years are big businesses and downtown organizations that promote the same conservative political agenda. The campaign cash often wound up in the same few political pots — a handful of supervisorial campaigns and some coordinated political action committees.

And despite spending ungodly sums of money, downtown lost more races than it won.

More than half the total money spent in 2008 came from one source: Pacific Gas and Electric Co., which plunked down $10.2 million last fall for the No on Proposition H campaign against the San Francisco Clean Energy Act. That November ballot measure, which lost under PG&E’s barrage, would have paved the way for public power, initiating a process to make the city the primary provider of electric power in San Francisco with a goal of 50 percent clean-energy generation by 2017.

The powerful utility wasn’t only the biggest spender last year — it claims the No. 1 slot on a list of all campaign contributions spanning from 1998 to 2008, which the Guardian compiled using Ethics data. PG&E dropped a juicy $14.7 million into local political campaigns over that period, beating out runner-up Clint Reilly by more than $10 million.

Below are brief introductions to the 10 biggest spenders, 1998-2008.

They’ve got the power. The colossal sums PG&E has forked over to influence ballot measures over the years puts the utility in a category all its own. SF isn’t the only municipality where the company has poured millions into defeating a public power proposal. In 2006, when Yolo County put measures on the ballot to expand the Sacramento Municipal Utility District (SMUD), which would have edged PG&E out of the service area, the utility spent $11.3 million to try and keep it from happening.

Pay to the order of Clint Reilly. Reilly, the former political consultant, now runs a successful real estate company. While his name routinely comes up on the roster of campaign contributors, he owes his status as No. 2 to his 1999 campaign for SF mayor, into which he poured some $3.5 million of his own money. "Most of the money we give is for Democratic candidates or progressive politicians, or neighborhood-oriented issues," said Reilly, who also served as president of the board of Catholic Charities.

Committee on really high-paying jobs? Third in line is the Committee on Jobs, a political action committee that aims to influence local legislation affecting business interests. The PAC is bankrolled in part by the Charles Schwab Corporation, Gap, Inc., and Gap founder Don Fisher — all of whom surface on their own in our Top 30 list. With a grand total just shy of $3 million, the committee coughed up about $100,000 in campaign-related spending in 2008. Much of that funding went to similar political entities, including the SF Coalition for Responsible Growth, the SF Chamber of Commerce 21st Century Committee, and the SF Taxpayers Union PAC (see "Downtown’s Slate," 10/15/2008). This past November, the COJ also backed the Community Justice Court Coalition, formed to pass Proposition L, which would have guaranteed first-year funding for Mayor Gavin Newsom’s small-crimes court in the Tenderloin. Prop. L failed by 57 percent.

Bluegrass billionaire. San Francisco investment banker and billionaire Warren Hellman has dropped nearly $1.2 million over the years into local political campaigns, our results show. Dubbed "the Warren Buffet of the West Coast" by Business Week for his sharp financial prowess, Hellman co-founded Hellman and Friedman, an investment firm, in 1984. Hellman is known for putting on Hardly Strictly Bluegrass, an annual SF music festival. While he tends to contribute to downtown business entities such as the Committee on Jobs and the Golden Gate Restaurant Association, in 2008 he devoted $100,000 to supporting a June ballot measure, Proposition A, that increased teacher salaries and classroom support by instating a parcel tax to amp up funding for public schools.

Fisher king. Don Fisher, founder and former CEO of Gap, Inc., is another one of SF’s resident billionaires. While Gap, Inc. turns up in 17th place in our results, Fisher himself has poured more than $1.1 million into entities such as the Committee on Jobs, SFSOS, the San Franciscans for Sensible Government Political Action Committee, and other conservative business groups. Fisher’s total includes money from the "DDF Y2K family trust," a Fisher family fund that shows up in Ethics records in 2000. In that year, $100,000 from that trust went to support the Committee on Jobs’ candidate advocacy fund, and another $40,000 went to a pro-development group called San Franciscans for Responsible Planning.

Not a very affordable campaign, either. Sixth up is Lennar Homes, the developer behind the massive home-building project at Hunters Point Shipyard, which the Guardian has covered extensively. The vast majority of its $1 million reported spending was directed to No on Prop. F, a campaign sponsored by Lennar to defeat a June ballot measure that would have created a 50 percent affordable-housing requirement for the Candlestick Point and Hunters Point Shipyard development project. The measure failed, with 63 percent voting it down.

Chuck’s bucks. Charles Schwab Corp., which set up shop in San Francisco in the mid-1970s, is an investment banking firm that reports having $1.1 trillion in total client assets. The corporation ranks seventh in our Top 30 list, with some $973,000 in donations. In 27th place is Charles R. Schwab himself, the company’s founder and chairman of the board (and the guy they’re referring to in those "Talk to Chuck" billboards posted all over SF). If Schwab’s individual and corporate donations were combined, the total would be enough to bump Warren Hellman out of fourth place. Schwab’s dollars are infused into the Committee on Jobs, the San Francisco Association of Realtors, the Golden Gate Restaurant Association, SF SOS, and other downtown-business interest organizations. "We’re a major company here in the Bay Area and a major employer," company spokesperson Greg Gable told the Guardian. "We’re interested in political matters across the board — it’s not limited to any one party." But it’s limited to one pro-downtown point of view.

The brass. The San Francisco Police Officer’s Association is another major player, spending some $913,000 since 1998 on political campaigns. The organization backed candidates Carmen Chu, Myrna Lim, Joseph Alioto, Denise McCarthy, and Sue Lee for supervisors in 2008, contributions show. All but Chu lost.

At your service. SEIU Local 1021 and SEIU 790 crop up frequently in Ethics data, with a grand total of about $860,000 in spending over the years. SEIU representatives recently turned out en masse at a Board of Supervisors meeting to urge the supervisors to support a June 2 special election to raise taxes in order to boost city revenues and save critical services from the hefty budget cuts that are coming down the pipe.

Friends in high places. No real surprises here: the Friends and Foundation of the San Francisco Public Library contributed its money to, well, ballot measures that would have affected the library. In 2000, for example, the F and F plunked $265 thousand into an effort called the "Committee to Save Branch Libraries — Yes on Prop. A."

Top 30 San Francisco campaign donors, 1998-2008

1. Pacific Gas & Electric $14,831,486
2. Clint Reilly $4,138,089
3. Committee on Jobs $2,970,857
4. Warren F. Hellman $1,191,970
5. Don Fisher (incl. Don & Doris Fisher Y2K trust) $1,164,286
6. Lennar Homes $1,002,861
7. Charles Schwab Corporation $973,176
8. S.F. Police Officers Association $913,834
9. SEIU Local 1021 & SEIU Local 790 $860,979
10. Friends & Foundation of the S.F. Public Library $858,082
11. California Academy of Sciences $818,154
12. Residential Builders Association of S.F. $753,857
13. Steven Castleman $665,254
14. S.F. Association of Realtors $647,299
15. S.F. Chamber of Commerce $614,824
16. SEIU United Health Care Workers West & Local 250 $585,937
17. Gap, Inc. $573,959
18. California Issues PAC $556,238
19. Corporation of the Fine Arts Museums $541,474
20. Wells Fargo $464,899
21. Building Owners & Managers Association of S.F. $464,027
22. Bank of America $429,316
23. Golden Gate Restaurant Association $422,685
24. SF SOS $407,491
25. AT&T Inc. and affiliates $404,704
26. Clear Channel $391,783
27. Charles R. Schwab (individual) $362,250
28. Yellow Cab Cooperative $344,907
29. S.F. Apartment Association $280,376
30. San Franciscans for Sensible Government PAC $279,009

LAFCo to SFPUC: Hurry it up already!

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Supervisor David Campos sent a clear message at the Local Agency Formation Commission (LAFCo) meeting on Jan. 23, emphasizing that he was eager to move beyond the delays that have hindered progress on Community Choice Aggregation. Commissioners Michael Bornstein and Ross Mirkarimi — who represents District 5 on the Board of Supervisors — echoed his concerns, along with an array of community members who turned out to speak during the public-comment session. Meanwhile, a few members of the public warned that further delays might amount to missing the boat on federal funding for alternative-energy programs, which the Obama administration is expected to make available in the near future.

Campos, who represents District 9 on the Board of Supervisors, is also the newest LAFCo commissioner. The city agency is charged with monitoring and advising the San Francisco Public Utility Commission’s efforts to develop and implement a Community Choice Aggregation program, which was mandated in 2004 by the Board of Supervisors to help ensure the “provision of clean, reasonably priced, and reliable electricity.” A CCA program would allow the city and county of San Francisco to become its own wholesale power purchaser for citizens. The plan includes targets for purchasing power generated from renewable resources such as wind and solar, with a goal of 100 percent clean energy by 2040. But the process of getting CCA off the ground has been moving along at a snail pace.

Powerless

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> amanda@sfbg.com

GREEN CITY Sup. Sophie Maxwell, who represents a disproportionately polluted district that is host to the city’s only fossil fuel-burning power plant, has introduced legislation to change the way energy flows into and around the city.

The ordinance collates some past resolutions already affirmed by the Board of Supervisors — to close the Mirant Potrero Power Plant as soon as possible and to request that the San Francisco Public Utilities Commission conduct a transmission-only study to update the city’s Electricity Resource Plan (which is currently based on building a new peaker power plant in the city in order to shutter Mirant’s older, more polluting facility).

Maxwell’s legislation further calls on the city to provide 100 percent clean energy by 2040 — a mandate lifted directly from Proposition H, a clean energy and public power act that was voted down in November.

But the three elements of the ordinance, which was co-signed by outgoing Sup. Aaron Peskin, are somewhat lacking.

The clean energy goals outlined by Maxwell only apply to the SFPUC — not to anyone who gets a Pacific Gas and Electric Co. bill — and SFPUC power is already almost 100 percent clean, consisting mostly of Hetch Hetchy hydroelectric, solar, biomass, and a small amount of cogeneration. (Large hydro and cogeneration do not meet the state’s definition of renewable, but they are considered among the greenest kinds of "brown" power.)

Prop. H would have required the city to conduct an energy study, and specifically stated that the option of city-owned and operated power be considered as part of the study. Subject to board and mayoral approval, the city could have public power if it was determined to be the most efficient and economic way to provide 100 percent clean energy to all citizens by 2040.

Neighborhood and environmental activists, including Julian Davis, who ran the Prop. H campaign, Tony Kelly of the Potrero Boosters, and John Rizzo of the Sierra Club, said they weren’t consulted or even clued in that the Maxwell legislation was being introduced. Rizzo called the clean energy goals "window dressing," and said, "It doesn’t accomplish what Prop. H does."

"I was surprised by the Maxwell ordinance," said Sup. Ross Mirkarimi, one of the authors of Prop. H, which Maxwell, Peskin, and six other supervisors endorsed. "We hadn’t learned of it until the day it was introduced. I believe it’s going in the right direction but I’d like to see it more committed to its insistence on public power — not just elements of Prop. H, but public power so that we are able to be clear about what forms of energy independence, clean energy, renewable that the city should administer."

Maxwell’s aide, Jon Lau, said they did reach out to Mirkarimi’s staff, as well as Mayor Gavin Newsom’s office, and the legislation was written broadly so that there was "something here for everybody if you’re interested."

"The ordinance she introduced is sort of agnostic toward public power," he said. "But it could and should be part of the analysis to the extent that we study residential needs in the city. It’s totally relevant to have a public power analysis." He called public power a "flash point," and said, "The whole conversation would be about that."

Rizzo said the legislation doesn’t demand anything of PG&E, in terms of clean energy goals, but Lau said they don’t have the authority to legislate a private company’s energy procurement. "We can’t just dictate goals for PG&E."

The board doesn’t have the authority to close Mirant either — the gas and diesel power plant operates with a Reliability-Must-Run contract and the state’s grid operator, California Independent System Operator (Cal-ISO), has said Mirant must run or be replaced by some other in-city, instantly available power generation.

The plant also operates with a water permit from the Regional Water Quality Control Board, and though City Attorney Dennis Herrera, Maxwell, and Peskin recently sent a letter urging no renewal of the permit, which expires Dec. 31, the water board seems to be waiting for the plant to close by some other means rather than taking up the issue. "I’m currently reworking the permit reissuance schedule without Potrero because Potrero’s status is really more like ‘to be determined’ at this point," wrote water board staff member Bill Johnson in an e-mail to the Guardian. Because the board hasn’t acted on it, the permit will automatically be extended on Jan. 1, 2009, meaning the plant will be operating indefinitely until the water board makes a final decision or some other way to close it is found.

There’s almost unanimous approval throughout the city that beefing up transmission lines would be better than building a power plant or allowing Mirant to keep operating. Transmission is also one way the city could gain more control of energy resources and potentially save, and even make, some money.

On Dec. 15, Barbara Hale, assistant general manager for power, sent a request to Cal-ISO asking that two new SFPUC transmission proposals be considered as part of the state’s regional planning. They include upping the voltage of existing lines between the Hetch Hetchy dam and Newark, and adding a new line between Newark and Treasure Island, which would allow Hetch Hetchy power to travel exclusively on city-owned lines. The city currently pays PG&E $4 million per year to carry Hetch Hetchy power from Newark into the city — a fee San Francisco has been paying since 1925 when the city, during construction of the transmission lines between Yosemite and the Bay, mysteriously ran out of copper wire just a few miles shy of PG&E’s Newark station.

The new line would run under the bay, using an existing SFPUC water pipeline right-of-way. "This pathway will allow transmission lines to traverse the environmentally sensitive Don Edwards Regional Wildlife Preserve [in Newark] that is likely to be a bottleneck between PG&E’s pivotal Newark substation and the substation serving the Peninsula," the letter states. The SFPUC also predicts some possible cost recovery from Cal-ISO for building the Newark line because it would improve regional reliability. The agency also says it’s exploring partnerships with other municipal utilities for joint ownership.

A flawed energy bill

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EDITORIAL Two months after Pacific Gas and Electric Co. spent $10 million to defeat a clean energy measure on the San Francisco ballot, Sup. Sophie Maxwell has stepped into the battle, introducing a mild ordinance that lifts some of the language from the Clean Energy Act but would accomplish very little. We’re glad to see Maxwell stepping up her efforts to close the dirty Mirant Power Plant in Potrero Hill, but her legislation needs some significant amendments.

Maxwell’s ordinance, cosponsored by Sup. Aaron Peskin (who is one meeting away from being termed out), would make it city policy to "take all feasible steps" to close the Potrero plant. That’s a laudable goal. It also borrows the aggressive environmental goals from the Clean Energy Act, stating that the city needs to meet all its energy needs by 2040 with renewable power. But unlike the Clean Energy Act, Maxwell’s mandate ignores PG&E, which supplies the vast majority of the electricity in San Francisco and which can’t even meet the state’s weak alternative energy standards. Her requirement would apply only to the city’s own power supplies, which come mostly from the Hetch Hetchy hydroelectric project and thus already meet the 2040 standards. So the part of the bill that deals with climate change and greenhouse gas emissions is utterly useless.

The measure calls on the San Francisco Public Utilities Commission to study the ways the city can meet its energy goals without the Potrero plant — again, a fine idea. But it ducks the central question: who’s going to control the local electric grid, and thus the city’s energy future? Will PG&E continue to call the shots (in which case San Francisco will never meet credible green-power goals)? Or will the city take control of the distribution system, which would allow lower electric rates and far higher environmental standards?

As Amanda Witherell reports on page 17, Maxwell’s aide, Jon Lau, said the ordinance is "sort of agnostic toward public power." That’s a mistake — leaving public power out of the equation amounts to a capitulation to PG&E and a guarantee that nothing substantial will change in the city’s energy portfolio.

Maxwell wants to close the Potrero plant as quickly as possible, and so do we. The best way to do that is to block the plant’s water permit when it comes up next year (see "Water board can close Mirant," 11/25/08), and Maxwell and City Attorney Dennis Herrera are moving on that front. But the California Independent System Operator (Cal-ISO), which controls the state’s grid, has in the past argued that the city needs a certain amount of generating capacity within its borders, and could force the Potrero plant to keep running.

Maxwell originally supported a plan to replace the in-city generation capacity by installing city-owned combustion turbines that would run only during periods of peak demand. But that plan failed after both environmentalists and PG&E opposed it. Now she’s pressing an alternative that would use new transmission cables, one owned by PG&E, to eliminate the need for power plants in the city.

That might work — but it would still leave the city in PG&E’s clutches, and while it would eliminate a source of pollution in southeast San Francisco, the city would still be using dirty power from PG&E’s nuclear and fossil-fuel plants elsewhere.

The best long-term solution is to build city-owned renewable generation to replace Mirant. The city’s community choice aggregation plan is moving in that direction. But ultimately, San Francisco will only reach aggressive clean energy goals if it controls its own fate.

Maxwell’s ordinance should be amended to clearly mandate a study that examines the feasibility of a public power system in San Francisco. If that’s not in the final version, the bill should be voted down.

Alert: A flawed energy bill

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A flawed energy bill (Scroll down to read Amanda Witherell’s Green City column with more on the clean energy/public power/Mirant plant battles)

EDITORIAL

Two months after Pacific Gas and Electric Co. spent $10 million to defeat a clean energy measure on the San Francisco ballot, Sup. Sophie Maxwell has stepped into the battle, introducing a mild ordinance that lifts some of the language from the Clean Energy Act but would accomplish very little. We’re glad to see Maxwell stepping up her efforts to close the dirty Mirant Power Plant in Potrero Hill, but her legislation needs some significant amendments.

Maxwell’s ordinance, cosponsored by Sup. Aaron Peskin (who is one meeting away from being termed out), would make it city policy to “take all feasible steps” to close the Potrero plant. That’s a laudable goal. It also borrows the aggressive environmental goals from the Clean Energy Act, stating that the city needs to meet all its energy needs by 2040 with renewable power. But unlike the Clean Energy Act, Maxwell’s mandate ignores PG&E, which supplies the vast majority of the electricity in San Francisco and which can’t even meet the state’s weak alternative energy standards. Her requirement would apply only to the city’s own power supplies, which come mostly from the Hetch Hetchy hydroelectric project and thus already meet the 2040 standards. So the part of the bill that deals with climate change and greenhouse gas emissions is utterly useless.

The measure calls on the San Francisco Public Utilities Commission to study the ways the city can meet its energy goals without the Potrero plant – again, a fine idea. But it ducks the central question: who’s going to control the local electric grid, and thus the city’s energy future? Will PG&E continue to call the shots (in which case San Francisco will never meet credible green-power goals)? Or will the city take control of the distribution system, which would allow lower electric rates and far higher environmental standards?

As Amanda Witherell reports on page 17, Maxwell’s aide, Jon Lau, said the ordinance is “sort of agnostic toward public power.” That’s a mistake – leaving public power out of the equation amounts to a capitulation to PG&E and a guarantee that nothing substantial will change in the city’s energy portfolio.

Maxwell wants to close the Potrero plant as quickly as possible, and so do we. The best way to do that is to block the plant’s water permit when it comes up next year [tk: still need a date for this: (see “Water Board can close Mirant,” 11/25/08), and Maxwell and City Attorney Dennis Herrera are moving on that front. But the California Independent System Operator (Cal-ISO), which controls the state’s grid, has in the past argued that the city needs a certain amount of generating capacity within its borders, and could force the Potrero plant to keep running.
Maxwell originally supported a plan to replace the in-city generation capacity by installing city-owned combustion turbines that would run only during periods of peak demand. But that plan failed after both environmentalists and PG&E opposed it. Now she’s pressing an alternative that would use new transmission cables, one owned by PG&E, to eliminate the need for power plants in the city.

That might work – but it would still leave the city in PG&E’s clutches, and while it would eliminate a source of pollution in southeast San Francisco, the city would still be using dirty power from PG&E’s nuclear and fossil-fuel plants elsewhere.

The best long-term solution is to build city-owned renewable generation to replace Mirant. The city’s community choice aggregation plan is moving in that direction. But ultimately, San Francisco will only reach aggressive clean energy goals if it controls its own fate.

Maxwell’s ordinance should be amended to clearly mandate a study that examines the feasibility of a public power system in San Francisco. It that’s not in the final version, the bill should be voted down.

PG&E’s new move to screw residential customers

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By Bruce B. Brugmann

(Scroll down to see the David Lazarus LA Times column and the CPUC administrative law judge’s draft decision to reject PG&E’s latest move to hammer residential ratepayers in San Francisco)

David Lazarus, the talented San Francisco Chronicle consumer reporter who is now writing for the Los Angeles Times, exposes in a Nov. 24 column the proposal by the state’s three largest private utilities to shift $90 million in fees for natural gas paid each year by business customers onto residential customers.

Lazarus asks quite rightly, “Is it equitable to raise rates for families while allowing them for the likes of Chevron and Bank of America? Is it equitable to offer a helping hand to employers by increasing the financial burden on employees?”

The Lazarus column ran in the Fresno Bee and other California papers. It did not run in the Chronicle/Hearst nor did the Chronicle do its own story. It is, I might add, the kind of story that Lazarus would find it difficult to write while working on the Chronicle because of the long standing sweetheart relationship that Hearst has had with PG&E. The most recent example of this unholy alliance came when PG&E and Hearst ganged up once again this fall to help PG&E defeat a clean energy/public power initiative that would have brought millions of dollars in savings for San Francisco ratepayers.

New member of the SFPUC?

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by Amanda Witherell

JulietEllis11.26.08.jpg
From left, Juliet Ellis with Manuel Pastor from UC Santa Cruz and Lori Reese-Brown with the city of Richmond

The San Francisco Public Utilities Commission has had two empty seats for months, but Mayor Gavin Newsom has finally made another appointment to the body that oversees the city’s water and power infrastructures. Juliet Ellis has been offered the “advocacy” seat on the five-member board.

For the past seven years she’s been executive director of Oakland-based Urban Habitat, a non-profit social and environmental justice organization that works on affordable housing, transportation, and land use planning issues throughout the Bay Area, though mostly in the East Bay. The organization has been around since 2004, and receives most of its funding from grants. [PDF of its most recent 990.] (A quick check of grants made by Pacific Gas & Electric since then showed none to Urban Habitat, unlike other purported community groups.)

Ellis told the Guardian she’s interested in joining the SFPUC because it will bring her focus back toward San Francisco, where she’s been living since 1995. She currently resides in Bernal Heights.

When asked how her experiences have prepared her to be a public utilities commissioner, she said, “I have a long track record of working with folks who are often the most left out of the process,” she said, and that would continue at the SFPUC. If appointed, she plans to keep her job at Urban Habitat.

“Our organization is really interested in justice components,” she said, and in particular, climate justice. “What are the implications for low income communities if sea levels rise? If air pollution increases?” And, she pointed out, what kinds of mitigations can protect more vulnerable communities when it comes taxation through congestion pricing or the continual siting of power plants in areas where people live, with their pollution and carbon offsets occurring elsewhere?

That relates intimately to long term water and power issues under discussion in San Francisco, like the 51 percent renewable energy projections for the Community Choice Aggregation plan and what to do about the Mirant Power Plant that’s still operating in the mostly black, mostly low-income, and, consequently, most cancerous part of town, as well as how to move the city toward more affordable energy bills.

Ellis didn’t have much to say on specific issues like Mirant or CCA, admitting that she hasn’t “gone deep enough, I haven’t learned all the information” about these heavily nuanced and political issues.

But, her thinking seemed to fall along the right lines of public accountability and control, citing “the more obvious benefits of having more control than when it’s privatized. It seems like CCA would provide more clean energy and control and that in and of itself makes it something that’s attractive.”

Ellis said she sees real opportunities to connect the SFPUC with the communities she’s been helping at Urban Habitat. “The main issues I’m excited about are job opportunities and thinking through how to position those,” she said, pointing out that the SFPUC is projecting 24,000 jobs through the Water System Improvement Plan. She would like to see some of those jobs go to people who are low-income and jobless now. She’s also interested in “out of the box thinking for mitigating impacts for communities like Bayview Hunters Point and Potrero on water and energy issues.” She said most people don’t understand the scale of work undertaken by the SFPUC and she’d like to build a better relationship between it and low income and communities of color.

She said the recommendation to join the SFPUC came from Fred Blackwell, a former Urban Habitat board member who was appointed by Newsom to head the Redevelopment Agency in 2007. So far she’s met with several members of the Board of Supervisors and her appointment will be heard by the Rules Committee during their Dec. 4 meeting.

Clean energy

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EDITORIAL Pacific Gas and Electric Co., its political hacks, and to a great extent, the San Francisco Chronicle all seem to take the same line on the defeat of Proposition H: It’s done. The people have spoken. Public power has been on the ballot 11 times, and it’s never passed.

And — as is always the case with a losing campaign — supporters of the Clean Energy Act are discussing what went wrong, looking at how the measure was written, the details, the language, the scope to see if there was something that could have been done differently.

But that ignores the central reality of the campaign for Prop. H: PG&E spent nearly $10.3 million to kill it. And it’s very, very hard to fight that kind of money.

The truth is, there was nothing wrong with the language or scope of Prop. H. If it had passed, it would have given the city the tools to create a sustainable energy portfolio that would be the envy of the nation. In fact, there is little doubt that the Clean Energy Act was well ahead in the polls when it was first placed on the ballot.

But as we’ve seen with so many races over time (and as we saw with Proposition 8 this fall) when a ballot measure it becomes a citywide or statewide race, big money has a serious impact. And we’ve never seen this kind of money in a San Francisco initiative campaign. In the end, PG&E spent about $53 per vote. That’s an outrageous sum, dwarfing any political spending that’s ever happened in San Francisco

Yet despite the barrage, the Clean Energy Act got tremendous grassroots and political support. Clean Energy has a strong constituency in San Francisco, including from the Sierra Club, and the power of this campaign won’t go away. Despite the efforts of downtown and PG&E, progressives still control the Board of Supervisors. Three of the city’s four representatives in Sacramento — Senator-elect Mark Leno, Assembly Member Fiona Ma and Assembly Member-elect Tom Ammiano — supported the legislation and will continue to back efforts to replace PG&E’s dirty power with locally- owned renewable energy. PG&E has money but it’s running out of friends in this town — and its illegal monopoly is the very definition of unsustainable.

There’s now an organized constituency for clean energy and public power, seasoned by this campaign and ready to continue the battle. That’s what needs to happen. There are numerous fronts: the city needs to be moving forward quickly with community choice aggregation, which offers the potential for cheaper, cleaner power. (The downside to CCA is that it doesn’t allow the city to make money; PG&E would still own the transmission lines, and thus make all the profits in the system.) Potentially, however, a CCA agency could begin moving toward creating local generation facilities and eventually toward building a local transmission system. A CCA also could directly access the city’s own Hetch Hetchy power and begin delivering it to local customers (once San Francisco can get out of the contracts requiring it to send too much of that power out of town).

The supervisors need a strong Local Agency Formation Commission to keep monitoring and pushing this, and the new board president needs to be sure LAFCO members are committed to and energized about renewable energy and public power.

Several supervisors — Sean Elsbernd, for example — told us they saw no reason for Prop. H to be on the ballot since so much of what it called for could be done by the board. Fine: Sup. Ross Mirkarimi, one of the authors of Prop. H, should immediately introduce legislation to do everything in Prop. H that doesn’t require a city charter change. Let’s see if Elsbernd and the mayor are really just PG&E call-up votes or if they’re willing to support an energy options feasibility study and strong renewable-energy mandates for the city.

And there are still legal options that the board should look at. City Attorney Dennis Herrera never wanted to go to court to enforce the Raker Act, the federal law requiring San Francisco to operate a public power system, but that’s an area the board can push. David Campos, the apparent supervisor-elect in District 9, is a lawyer who has worked in the city attorney’s office and sued PG&E, so this is an area where he can show leadership.

The bottom line is that this battle isn’t over.

There were other disappointments on what was generally a progressive ballot. Proposition V — the phony measure calling on the school board to reinstate JROTC — passed, narrowly. It was mostly a wedge issue to hurt progressive candidates for supervisor, and has been a horribly divisive issue in the schools. The school board, which cut off JROTC last year, is now pushing for an excellent public service alternative and doesn’t need to go back and reexamine the issue. JROTC is a terrible idea for San Francisco, and the newly elected board members shouldn’t even bring this up again.

Of course we were deeply unhappy about the passage of Prop. 8. The repeal of same-sex marriage was such a blow to San Francisco that it dampened a lot of the enthusiasm over the Obama victory. But that one’s not over, either; it has just begun. Statistics show that voters under 30 overwhelmingly support same-sex marriage — and if the campaign is run differently, and the message is positive, it’s likely that Prop. 8 can be overturned. Marriage equality advocates should think seriously about preparing now for a major campaign in November 2010 to restore equal rights for same-sex couples in California.

Rally to stop PG&E’s late payment deposits!

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By Bruce B. Brugmann

(Scroll down for information on the rally and on a consumer survey on PG&E’s late payment policy

The Pacific Gas & Electric Company really does screw residents and businesses on a systematic basis, as Guardian readers and Clean Energy Act (H) supporters know.
For example, the utility often imposes deposits for late payments on residents. For businesses, it often forces a late paying company to buy a bond. For businesses that late pay, PG&E is quick to notify Dun & Bradstreet, the business credit rating service, making it more difficult for the company to qualify for credit. To make matters worse, there is no realistic way for residents or businesses to get help or complain about PG&E’s late payment policies or any of its other abusive policies. On guard!

So it is good to see the The Utility Reform Network (TURN) call PG&E out on the late payment issue and sponsor a rally against PG&E’s late payment deposit policy at noon Thursday (ll/20/08) at the corner of Fremont and Market Sts. in San Francisco. Here is TURN’s press release on the rally and its survey on late payment deposits.

Why penalize customers who are struggling to pay their bills during an
economic crisis?

STAND UP! SPEAK OUT!
Fight for our rights to affordable utility services!
Rally for a Suspension of Late Payment Deposits!

Thursday, November 20, 2008
12:00pm
Corner of Fremont & Market St
San Francisco, Ca 94105

Directions by public transportation: MUNI Bus Lines-F, 38, 7, 14, 21, 6, 71 Metro Lines- J, K, L, N, M, T exit at Embarcadero station

For more information please contact Lotchana at 415.987.4375 or
lsourivong@turn.org

Sponsored by TURN (The Utility Reform Network)

PG&E Customer Survey: Deposits

Have you ever been asked for a deposit because you have paid your bill
late?
Yes No

Are you doing your best to make regular payments?
Yes No

Is your electric/gas service still on?
Yes No

Have you had the same residential billing address and account name for
the past year?
Yes No

Do you have a copy of your bill that shows the deposit charge? Yes No

If you answered YES to all the questions and want the deposit refunded,
please contact Lotchana at 415-987-4375 or lsourivong@turn.org.

Maybe we contact you, if we have further questions?
(Mailing address: 711 Van Ness Ave. Ste. 350, SF, CA 94102)

Name:_____________________________________

Address:___________________________________

Phone or Email:________________________________

Fighting Newsom’s mid-year cuts

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EDITORIAL If Mayor Gavin Newsom moves forward aggressively with mid-year cuts to the city budget, a lame duck Board of Supervisors with four veterans — including the board president and chair of the Budget Committee — on their way out the door could be voting on harsh reductions in city spending on health care, parks, and other services. That’s not the best way to make policy; we’d rather the cuts go to the new board, which will be dealing with next year’s budget anyway. But if the mayor is pushing reductions now, the current board needs to act aggressively and quickly to be sure that the mayor’s wrongheaded priorities don’t carry the day.

We recognize that the city has money problems. Like every other taxpayer-financed entity in America, San Francisco is getting hit hard by the recession. When retail sales drop, so do local sales taxes. When real estate values plummet, so do property taxes receipts. And while some prominent economists are urging President-elect Barack Obama to pour federal money into cities this spring, nobody can count on that happening.

City Controller Ben Rosenfield is projecting that the city will be around $100 million short of cash by the end of the fiscal year. And since California cities (unlike the federal government) can’t run a deficit, that money has to come from somewhere. (Fortunately, the red ink won’t be as bad as it might have been — with little help from the mayor, Sup. Aaron Peskin got two new revenue measures passed in November that will bring some $50 million more into city coffers).

Newsom’s chief target at this point is the Department of Public Health, which is facing more than $256 million in cuts. That’s on top of all the cuts the department has had to absorb over the past two years — and it will cut deeply into the city’s ability to maintain its landmark Healthy San Francisco program. The Recreation and Park Department, libraries, and Muni will face cutbacks too, and there’s almost certainly a Muni fare hike (essentially a tax on the poor) on the horizon.

But there’s no talk of reducing or eliminating any of the mayor’s pet programs — like the 311 call center, which is a fine service but perhaps not as important as medical staff at SF General — or cutting significantly into his own office spending.

And, as always, the mayor has failed to look at any additional sources of revenue (with the possible exception of new parking meters in Golden Gate Park and at Marina Green). It’s particularly frustrating that Newsom and his hired gun, Eric Jaye, pushed so hard to help Pacific Gas and Electric Co. defeat the Clean Energy Act when public power would be the source of hundreds of millions in annual revenue. (PG&E killed 10 other ballot measures that would have brought cheap Hetch Hetchy public power to San Francisco, the largest source of potential new revenue for the city, and the private monopoly yanks more than $650 million a year out of the city in high rates, according to a Guardian study.)

The supervisors don’t have to wait for the mayor to propose cuts and then react. They can begin to move now. They can begin to identify their own set of cuts and revenue enhancements — and can begin establishing an alternative set of priorities. Is it better to cut 311 and the mayor’s special global warming deputy than to cut nurses at General? Is it better to close some redundant fire stations than cut hours at libraries? Should parking meters and garage fees go up downtown before city parks get meters? Back in 1973, in his first run for supervisor, Harvey Milk proposed eliminating the police vice squad (see "I remember Harvey"). That’s an idea whose time may have come again.

The point is that the mayor, who is weak and more focused on running for governor than on running the city, shouldn’t be driving the fiscal agenda alone. The supervisors need to either agree that they won’t act on cuts until the new board takes office or offer some alternative plans today.

Guardian: ‘Fighting Newsom’s mid-year cuts’

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By Bruce B. Brugmann

(Scroll down for the Guardian editorial in Wednesday’s edition (ll/19/08), “Fighting Newsom’s mid-year budget cuts”)

Once again, the Guardian is editorializing about the problems of the structural city budget deficit, which of course will be worse because of the economy and because of Mayor Newsom’s moves for mid-year cuts aimed at our lame duck Board of Supervisors.

And once again, the Guardian raises the issue, as we have since our first PG&E/Raker Act scandal story in l969, that the city is losing tens of millions a year by allowing PG&E to control its cheap Hetch Hetchy power and instead forcing the city’s residents and businesses to buy PG&E’s expensive private power. (See Guardian stories and Bruce blogs for details.) And it is most annoying that Newsom and his hired gun, Eric Jaye, worked so hard to defeat the Clean Energy Act (H), when public power would be the biggest potential source of new revenue for the city. Jaye conveniently advises Newsom and runs his campaign for governor at the same time he consults for PG&E and ran PG&E’s campaign against H. Neat.

More: it also annoying that the San Francisco Labor Council allowed PG&E to hold labor hostage in this campaign and in effect allowed PG&E to drum home the charge, without labor counter, that city workers are so dumb, so incompetent, and so lazy that they can’t run an electricity system. This posture puts city workers and their unions at a disadvantage when the budget axe starts falling.

The Guardian editorial: “Fighting Newsom’s mid-year cuts”