London N. Breed
Mayor
Newsha AJaml
President
Sophie Maxwell
Vice President
Tim Paulson
COmmissioner
Anthony Rivera
Commissioner
Kate H. Stacy
Commissioner
Dennis J. Herrera
General Manager
San Francisco
Water Power Sewer Services of the San Francisco Public Utilities Commission 525 Golden Gate Avenue, 13" Floor
San Francisco, CA 94102
T 415.554.3155
F 415.554.3161
TTY 415.554.3488
DATE: July 112023
TO: Clerk of the Board of Supervis4 —
(.6 -31c
THROUGH: Dennis J. Herrera, General M
Barbara Hale, Assistant General Manager, Power
Ramon Abueg, Deputy Assistant General Manager, Operations FROM: Julia Olguin, Director, Power Origination and Power Supply Randi H. Cheuk, Manager, Power Origination and Power SeDly Cyrus Dela Cruz, Analyst, Power Origination and Power Supply en , SUBJECT: Power Quarterly Report on Delegated Authority Contracts Pursuant to Administrative Code Section 21.43
The following quarterly report has been prepared for the Board of Supervisors (Board) in accordance with Section 21.43 of the Administrative Code.
In Administrative Code Section 21.43, the Board delegated to the General Manager of the San Francisco Public Utilities Commission (SFPUC) authority to execute certain contracts with terms in excess of 10 years or requiring expenditures of $10,000,000 or having anticipated revenue of one million dollars or more subject to specified limitations through June 30, 2025.
Administrative Code Section 21.43 also required the SFPUC to report quarterly to the Board the duration, product purchased, and cost of contracts entered".
Awarded Per Administrative Code Section 21.43
Quarter 4 (April 1, 2023 — June 30, 2023)
CONTRACT TYPE PRODUCT COUNTERPARTY DURATION CONTRACT AMOUNT Purchase System Energy Direct Energy 12/1/2023 - 1/31/2026 $12,276,000 Purchase System Energy Calpine Energy Services, LP. 1/1/2024. 12/31/2026 $57,082,284 Purchase Capacity NextERA 6/1/2025 - 5/31/2040 $226,530,000 Purchase System Energy NextERA 7/1/2023 - 2/29/2024 $16,425,512 Purchase System Energy Morgan Stanley Capital Group, Inc. 1/1/2024 - 12/31/2024 $19,423,620 Purchase Capacity NextERA 1/1/2025 — 12/31/2026 $21,024,000 Purchase PCC1 Southern California Edison 10/01/2023 - 12/31/2040 $301,266,008 OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
During this quarter. the contracts listed in the table above had the following labor- related provisions waived:I Minimum Compensation Ordinance (12P), Health Care Accountability Ordinance (120), and Sweatfree contracting (12U.4). Six of the seven contracts involved purchases from existing generating sources, and did not support the construction of new, to-be-built generating facilities. The NextERA 15-year capacity contract will support construction of new battery storage. In closing that deal, SFPUC used the form contract approved by the SFPUC under Ordinance No. 176-22. While able to include a preference for unionized workforce or commitment to a PLA and Social Impact Partnership program in the RFO process, the SFPUC waived the labor-related provisions.
This report meets the Quarter 4 of Fiscal Year 2022/2023 reporting requirements established by Section 21.43 of the Administrative Code for contracts executed under the delegation of authority. Should you have any questions, please contact Barbara Hale, SFPUC Assistant General Manager. Power, at BHalesfwater.org and (415) 613-6341.
1 During the Budget and Finance Committee hearing of April 26, 2023 when amendment of Administrative Code 21.43 was considered, Supervisor Chan asked that the quarterly report include whether these three provisions were waived for any reportable contracts executed during the reporting period.