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tv   [untitled]    September 7, 2010 11:30pm-12:00am PST

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of san francisco and all of the success that they have had. so that's an example of some of the local products, local to san francisco. across california, viason and several other companies have done projects and done different stages of development of projects ranging from wind farms from 100 megawatts and up to solar projects going on in central valley. so we have a wellth of expertise and -- wealth of expertise and existing knowledge as well as projects that will be coming online over the next few years that we will be looking for other parties for that energy. there was a second part to that question. supervisor dufty: you sort of answered it, but some of the ideas that are in the pipeline or might be new ideas. >> exactly.
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if you look at publicly available resources, there are several dozens of projects cropping up in northern california that we'll be able to access. there are also a wealth of opportunities, some that were listed in the r.f.p. itself to develop solar and distribute fuel cell resources and things like that right here in the city. additionally to reduce the renewable and energy efficiency and demand response programs, one of our subcontractors is the leading demand response provider in california where they are responsible for both capacity bidding lists, edison and as well as san diego gas and electric and they are also the largest demand response provider currently in the pg&e portfolio. so we contacted them directly to be able to leverage their expertise for the city and county of san francisco.
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commissioner vietor: great, that's part of what i wanted to hear. energy on the table and a direction we should get aggressive with. one last question. i think there is going to be some marketing challenges -- is that your experience -- [inaudible] >> well, specifically for customer outreach, we've developed a relationship with grubb and ellis here locally to build a proactive strategy to contact the largest commercial and industrial real estate owners here in the city and county. so as soon as we can get through the next few steps of
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the process through negotiation and to contract, we hope to hit the ground running, so to speak, so that we already will have had exposure to the key decisionmakers that will be making the decision to stay enrolled in the cleanpower s.f. rather than opt out. commissioner vietor: thank you. chairperson mirkarimi: thank you, commissioner. commissioner ellis. commissioner ellis: i have a couple of questions. one and hoping you can talk a little bit more about power choice's specific experience in public power and endeavors in anything that relates to what we're trying to do with c.c.a., even with your answer, it was unclear to me, are you talking about the subs that were in the r.f.p. or are you talking about power choice's -- >> does power choice have direct experience in public power and i'll turn it over to kent palmerton to give a
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comment about his work with the power water pooling resource authority up north. kent. chairperson mirkarimi: welcome, mr. palmerton. >> thank you very much. and my role with power choice, i'm a co-founder of power choice and i have been here in california since 1985, grew up in the pacific northwest. in 1985, i began work with the northern california power agency, a group of 15 municipal electriutilities. i have been involved with public power since then. we -- at ncpa, we built $2 billion in electric power plants. we were instrumental in all of the open access transmission access wars that you are using the transmission from pg&e or edison or whatever it might be.
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i'm currently under contract as general manager of the power and water resources pooling authority. we are five years and 22 days old. we're about 100-megawatt utility, 15 irrigation and water districts spread between bakersville and in the counties of sonma and santa clara. the model for this is a model similar to what we developed at ncpa and it's the model that i have put into place at the pooling authority. basically i'm very comfortable working with the board and understanding how to extract the most amount of value from an organization that is working in a community effort. it's very important that as public power that you meet the goals and objectives of the constituents and the elected officials and the board. it is not necessarily a for-profit enterprise, but you must operate it as a business
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where you have clear and concise goals and operations so that you make sure that revenues and expenses and accountability is always there for the board and always there for the constituents. so we could talk for way too long if you want about public power issues, but does that answer your question? commissioner vietor: i have a follow-up? chairperson mirkarimi: yes supervisor dufty: the -- commissioner vietor: the second is about power choice as a company. you talked about relocating your headquarters to san francisco. where are you located now, how many employees and the last question would be following up on supervisor dufty's comments about the job piece and wanted to know, maybe it's a staff question, at what point if power choice moves forward are they able to come back to us
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with regards to how they're thinking about the local job opportunity strategy in a much more kind of concrete way? so two questions, background on the company and kind of -- >> thanks, kent. i definitely wanted to use his expertise and his voice while he is here. thank you. to address your first question, power choice was formed in 2009 as a new venture specifically to focus on the emerging needs of community choice aggregation programs that were going to be cropping up here in california. so power choice was formed just prior to submitting a bid to the marin energy authority. so we saw an opportunity to utilize our expertise as well as our relationships across the industry to bring together world-class companies to meet the needs of c.c.a.'s across california. commissioner vietor: and you're
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headquartered now? >> the headquarters on paper is in carmichael, california. we will be building the headquarters of power choice in downtown san francisco. we have been graciously given temporary space and we'll be located there while we go through the negotiation and the next few steps of the process as we get going. then we'll be looking for a permanent headquarters in downtown san francisco. chairperson mirkarimi: we have some good deals on real estate right now. >> i have headquartered -- heard. then you had, the other question was about local jobs in the workforce? chairperson mirkarimi: commissioner, can you speak into the microphone, please. commissioner ellis: as close as i can get, yes. chairperson mirkarimi: you can extend it to you. commissioner ellis: the p.u.c. has been moving in the direction trying to get more specific about what is the real impact with regard to local
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jobs, local hirs, having a priority around that with endeavors that we are embarking on. i wanted to hear, it's probably more of a staff question of what's the appropriate time that we'll get more details about what this is going to look like with regard to job opportunities for local san franciscans? >> thank you, commissioner. one thing i would want to start out by noting is -- i will characterize a bit of power choice's, is they did do some good-faith outreach for l.b.e.'s. we took that as an encouraging sign that they be, you know and today i think the comments are also very supportive of sitting down at the negotiating table to work towards trying to incorporate the city's goals, not only on the renewable side but on the local workforce development. in terms of the various terms that we'll be sitting across the table to negotiate those will be front and center on my
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team's mind and i hope to be able to bring good news and updates to this body as appropriate. chairperson mirkarimi: thank you, commissioner ellis. commissioner vietor. commissioner vietor: i just wanted to be clear. so power choice basically came together as almost like a broker, i don't know, maybe there is another word for it in the energy world where you're putting together a set of subcontractors to meet the specific tasks that are outlined. is that sort of correct? >> that's correct. commissioner vietor: you did that in advance for the bid four the marin energy authority. >> that's correct. commissioner vietor: are you going to be running that program as well? >> i do know, but, charles, has anything changed. nothing has changed in that bidding process. we did not win that bid. there is future opportunity. commissioner vietor: and so you're confident because of the high-ranking that you received
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that the subcontractors that you have reached out to will, indeed, and i guess this is partly a question for you and the p.u.c. staff as well and lafco even, that that team of subcontractors that you have identified will indeed be able to meet the objectives as outlined and really hit the targets that i think we as a group are really eager to see come online? >> absolutely confident because i just want to point out that these were not relationships that we generated for the purpose of answering and responding to this r.f.p. these were working relationships. these are relationships with companies that we already do currently work with. so we brought them together as a shell force to show you the types of companies that were behind our bid that will be supporting our efforts. chairperson mirkarimi:, and mr. campbell, if i'm not mistaken3
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chairperson mirkarimi:, and mr. campbell, if i'm not mistaken, there is probably more detail you can provide in the next several days that gives clarity as to what the differences were and those who did apply for -- who were amongst the r.f.p. participants, is that correct? you're shaking your head in the affirmative. very good. commissioner avalos. supervisor avalos: just a follow-up question and thank you for your presentation. you talked about these are companies that we have been working with, but you have just really formed, so in what capacity has power choice actually been an entity collaborating with these organizations? it seems like these organizations are collaborating with one another, but in terms of a new company or a new structure, that's a brand-new thing, correct? >> that's a very good question. i should clarify. the principals of power choice have long-standing working relationships with the companies. supervisor avalos: then i guess the question to me that i have is if you could talk, explain a little bit about your
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structure, how these companies will be working together under the structure of power choice, what is -- if you can describe to us that, would be great. >> sure. so part of the answer will be subject to the negotiation and the ultimate contract which will define how we'll use our subcontractors, but i'll start with task one in energy procurement so we have a long-standing relationship with the nationally recognized leader in agent procurement of energy, so that is power marketing and that's a relationship that kent brings from over the last five years in serving perpa. we currently have that working relationship. we were actually luckily enough to get a couple of executives from that company to join us here today. they're vested into our planning to serve the needs of the city and county of san
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francisco because of our working experience with the power marketing and other renewable developers and other folks on the customer care side, we'll be able to seamlessly create those linkages within power choice to be able to serve the needs of the city. chairperson mirkarimi: you have to go to a microphone. >> these are excellent questions. the marketing, for example, in the state of california represents and is the scheduling coordinator for or scheduling coordinator agent for the city of roseville, pasadena. in the northwest, i believe it's to coma city and another 40,000 megawatts of rural electric cooperatives and municipal utilities across the united states. they're based in indianapolis.
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this is a 24-7 operations that they have both front, middle and back office desks. i have been working with them in real-time over the last three years and their experience within california, between their functions that they undertake on a 24-7 basis working in the california markets, it's a perfect fit to overlay on top of what the city of san francisco and the c.c.a. program needs. the company that sam runs is a scheduling coordinator that deals mostly with renewable resources. so part of the structure that we have is the power marketing will be the scheduling coordinator agent for the load here in san francisco. this company is planning to be the scheduling coordinator and agent for renewable resources that are owned or contracted for by the city directly. and then power marketers such as shell or constellation or b.p. or any of the large
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marketers out there that we have identified, j.p. morgan energy, would provide a scheduling coordinator relationship for market power. and that structure creates the ability for this company and the city to be able to both transact and participate in the california markets, take advantage of resources that you build, contract for, or brought in from the marketplace and that we are able to settle and transact in a fashion that we know exactly where costs are on an hour-by-hour basis. in task two by developing projects and resources, i'm currently working with a group that is building a solar process, a megawatt process. one of the subcontractors is summit energy. i worked with them in goldendale, washington. and a project that we're trying to get it under construction now here in california near, in
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kings county near fresno. i have had a relationship with a principal at summit energy when i was in the northwest. there was an administrator of bonneville and department of energy. when we talk about one of the groups in terms of if the city is looking at acquiring interests in wind turbines or wind projects or combined cycle projects or something else out there that is already built and already existing, certainly energy management, a grew inly energy management, a grew that you have consulted with -- a group that you have consulted with over the last five or six years, they understand the engineering. if it'spengineering. if it's a thermal plant, they get in the middle of it because they have run it before. if it's a wind turbine, they have build them before. if it's a solar project, we have currently the sterling
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number one on the r.f.p. for los angeles department of water and power, a 250 megawatt solar project that is being developed by a group i have been working with. so all of these contacts. they're individual companies, but we all have formed a network in the various ways that we operate our organizations, both within mcpa, back in my past life, i did spend six years with the merchants, with williams and constellation and others and have consulted now for a solid seven years, i guess, on my own. the last five years running the power and water resources pooling authority which was a start-up organization of irrigation and water districts that started from scratch. we built the systems from getting energy data from pg&e to we're now 452 meters read every 15 minutes. and if you needed to, i could
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dial up today and tell you exactly what power was bought, when it was sold, and who did it, and part of that based on the relationship with aces. that's the experience that we brought to community choice aggregation, the experience that we brought to the proposal that we made to you folks. yes, power choice is an entity. i think the secretary of state + i think the secretary of state accepted papers june 26, something like that, but it's really 20 years, 30 years of my experience, 20 years of relationships and 10 years of working with these companies and five years on the ground actually making it happen here in california in northern california. chairperson mirkarimi: commissioners, any other questions? very good. thank you, sir. >> thank you. chairperson mirkarimi: mr. campbell, just to round out this particular item, the next
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stage that i think that you have would be the negotiation stage beyond the protest period once it expires with power choice, l.l.c., is that correct? >> correct. chairperson mirkarimi: so some of the elements that had been remarked by members of the p.u.c. commission and lafco could also be entertained as possible conditions as part of that negotiation process? >> guidance in terms of elements to focus on a policy perspective and then negotiations are more than welcome to our team. chairperson mirkarimi: very good. so this isn't by my reading of the situation and understanding of our own process, by any stretch of the imagination, where the window is closed. in fact, it's where the window is more open for the city and the lead vendor to entertain what those negotiable elements are, correct? >> yes. chairperson mirkarimi: very good. ok. if there are no further
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questions, i would like to open it up to public comment for these particular items, number four and five. thank you, mr. campbell. i'm sorry, did you have anything else you wanted to add, mr. campbell? >> no, tau. chairperson mirkarimi: ok, appreciate it and thank you to power choice. >> well, good afternoon, commissionsers, eric brooks with san francisco green party, our city and representing the coalition that helped get us all the way to this point. this is indeed all the way to this point. this is indeed a profound moment in time that this is actually moving forward. i find it particularly excellent that there is basically a new company forming around our c.c.a. and going to locate itself in san francisco. that will be good, no doubt, for local hiring. but with that said, since this will be the beginning of a new millennium on energy here in san francisco, we need to make sure we get it right. it's hard to energy,
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we want to get it right. it is hard to tell what exactly the plan is but it looks like the plan is to do procurement in the beginning of the program. during the upcoming negotiations, i am certain once i go back and speak to the other applicants that for us to support this, we would insist that the actual construction and installation is substantially met in the contract. we have seeone to make sure that what was going to be billed is built. then we will have the gall for localized clean energy. if this is some initial
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procurement, that could be a kick start in the first couple of months. advocates would have to see that the construction will happen on schedule. that is what i would say on that. just to fill that out, if we don't achieve a localized and i 1st energy mix -- solar, wind, the district did a generation -- teach treatebut the- distribute generation. we don't have something that can go against the huge enemy, pg&e, that we are facing. it looks like an interesting
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start but let's make sure that we codify all of that during the negotiations. on that note, contractors and need to be fully engaged in the negotiations for this to turn out the -- >> good afternoon. and know that there was one point in time where we were not sure that this was even going to go out. on want to echo some points that were said during the program. on tto remember the
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original generation. this is very important because a lot of people were drawn to the program for the impact on the environment and to leverage the investment to create jobs. your solar generation will be important. let's make sure that this is important during the negotiations. the 2-3 megawatts that have been installed, we have seen some hires through the solar program. don't forget to try to get a requirement. the reservoir mandates and no less than 30% of the jobs to be
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taken from the workforce development tool. the work force development team needs to be at the table. that is a mandate to make sure that we do that. we want to have them involved early on because this will come at budget time. this will go in a certain direction on the jobs peace. another thing to make sure to discuss with respect to the wind farm, i assume that this is part of the proposal. this is key to the city's environmental goal. as we rely on the cable that is coming in a couple of weeks, we are not drawing on the old fossil fuel plants on the other side of the state.
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the cca was put out there to look at the renewable mixed. the wind farm is located at around antioch. in the region, this will shut down the power plants and this will relieve the concern that san francisco is leveraging some of our reliability. >> thank you. any other public speaker? public comment is closed. i want to thank the sfpuc for the presentation. i agree that this is a profound an exciting time. this is just the beginning.
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obviously, we are all committed to seeing this through. i think that we are making some progress here with regards to the seriousness of the prospect of this implementation. please read the next item. >> item 6, update on the marin energy authority process. >> i would like to welcome our counterpart who has been demonstrating the steadfast commitment. they were ahead of us in san francisco. we have benefited from two updates from marin energy.
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we thought it would be constructive to have puc commissioners be here as well. they have been very attuned to the challenges that they have been confronted by. there are some experiences that they aren't in facing. this is for instructive. we have been trying to exchange information. >> thank you, mr. chairman. it is a pleasure to be heard today. i served as the chairman of the marin and anti authority. weme