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525 Golden Gate Avenue, 13th Floor
San Francisco, CA 94102
T 415.554.3155
F 415.554.3161
TTY 415.554.3488
DATE: April 1 , 2024
TO: Clerk of the Board of Supervisors
THROUGH: Dennis J. Herrera, General Manager
Barbara Hale, Assistant General Manager, Power
Michael Hyams, Deputy AGM, CleanPowerSF and Power Resources
FROM: Julia Olguin, Director, Power Origination and Power Supply Randi H. Cheuk, Manager, Power Origination and Power Supply Cyrus Dela Cruz, Analyst, Power Origination and Power Supply
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.” Table 1 identifies all effective contracts where 21.43 authority was exercised during the third quarter of fiscal year 2023-24.
Table 1. Contracts Awarded Per Administrative Code Section 21.43 Quarter 3 (January 1, 2024 – March 31, 2024)
In addition to one contract to purchase System Energy, the SFPUC also amended a contract to purchase Capacity previously reported in Quarter 4 of Fiscal Year 2023. The contract with NextEra was amended to include Local
CONTRA CT TYPE PRODUCT COUNTERPA RTY DURA TION CONTRA CT
A MOUNT
Purchase System Energy TransAlta Energy Marketing
(U.S.) Inc. 7/1/24 - 3/31/25 $12,929,441
Amended Purchase Capacity NextEra 1/1/2025 – 12/31/2026 $288,000
Resource Adequacy capacity attributes, increasing the total cost of this contract from $21,024,000 to $21,312,000. The cost difference of $288,000 is included in this quarter’s report, as the amendment was executed under the General Manager’s delegated authority.
During this quarter, the contracts listed in the table above had the following labor- related provisions waived: 1 Minimum Compensation Ordinance (12P), Health Care Accountability Ordinance (12Q), and Sweatfree contracting (12U.4). The contract in the table above involved purchases from existing generating sources, and did not support the construction of new, to-be-built generating facilities.
This report meets the Quarter 3 of Fiscal Year 2023/2024 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 [email protected] 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.