CleanPowerSF is a program of the San Francisco Public Utilities Commission (SFPUC), an enterprise department of the City and County of San Francisco.
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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.
525 Golden Gate Avenue, 7th Floor
San Francisco, CA 94102
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[email protected]
Date: November 26, 2025
To: Commissioner Joshua Arce, President
Commissioner Steve Leveroni, Vice President
Commissioner Avni Jamdar
Commissioner Kate H. Stacy
Commissioner Meghan Thurlow
Through: Dennis J. Herrera, General Manager
Barbara Hale, Assistant General Manager, Power
Michael Hyams, Deputy AGM, CleanPowerSF and Power
Resources
From Cheryl Taylor, Manager, CleanPowerSF Operations
Subject CleanPowerSF Fourth Quarter Update
This memorandum serves as the regular quarterly update to the San Francisco Public Utilities Commission (SFPUC or Commission) on the Power Enterprise’s CleanPowerSF program.
The fourth quarter of calendar year 2025 update focuses on the following topics:
1. Program Service Statistics and Enrollment Activities
2. Communications Activities
3. Customer Programs Update
4. Energy Procurement and Planning Activities
5. Regulatory Proceedings
* *
1. Program Service Statistics and Enrollment Activities CleanPowerSF continues to provide clean electricity generation services to San Francisco customers, serving about 388 ,000 active customer accounts as of November 2025. CleanPowerSF’s opt-out rate remains stable at approximately 4.77 percent of all enrolled accounts.
acting for M. Hyams
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Figure 1: CleanPowerSF Enrollment, November 2025
Customer enrollment in SuperGreen, CleanPowerSF’s optional 100 percent renewable energy product, is currently at about 2.03 percent of active accounts, down slightly from 2.05 percent since the previous quarterly report.
In total, renewable energy sales to SuperGreen customers accounted for 16 percent of CleanPowerSF’s energy sales in calendar year 2024.
Enrollment in the SuperGreen Saver program is at 1,558 accounts, slightly below the available program maximum enrollment of approximately 1,607.
2. Communications Activities
CleanPowerSF is in the community, and we regularly communicate with customers and the general public about our programs and services. Below are some highlights from this past quarter.
a) CleanPowerSF 2024 Power Content Label
CleanPowerSF’s Power Content Label (PCL) for 2024 was sent to all customers via email in October 2025, per California Energy Commission directive, and via United States Postal Service mail in early November 2025.
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Figure 2: CleanPowerSF 2024 Product Content Label postcard distributed to customers
b) Power Enterprise Affordability Drives
The Power Enterprise joined forces with the Water Enterprise to host affordability events in four neighborhoods throughout San Francisco to support low-income customers in applying for discounts on their CleanPowerSF and Hetchy Power bills. As part of these events, w e partnered with c ommunity- based organizations on in-person workshops during these events held at:
• Mission Neighborhood Center at the Mission District (October 16) • APA Family Support Services in Chinatown (October 24) • The Nabe in Potrero Hill and Dogpatch areas (October 25) • YMCA in Bayview Hunters Point (October 28)
More than 470 people attended these events . CleanPowerSF staff assisted 143 customers in completing applications to either the California Alternate Rates for Energy (CARE) or Family Electric Rate Assistance (FERA) programs designed to assist low-income households in California with their energy costs.
Staff provided translation in the following languages:
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Table 1: Number of Non-English-Speaking Customers Assisted at Affordability Drive Language # of
Translation
Instances
Chinese 82
Spanish 24
Vietnamese 2
Russian 1
An additional 50 ratepayers took paper applications home for later completion.
Figure 3: Participants and staff at the Affordability Events Sites : clockwise from top left : APA Family Support Services; The Nabe; M ission Neighborhood Center Inspiring Success; YMCA Bayview-Hunters Point
3. Customer Programs Update
CleanPowerSF continues to develop and offer programs that help customers manage their energy costs, reduce their carbon footprint, and align with City and state environmental goals. Below are some highlights from this past quarter.
a) Net Energy Metering/Solar Billing Plan
In past quarterly updates, we have reported on the new statewide framework for how rooftop solar owners are compensated for their excess solar
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generation. Following the California Public Utilities Commission (CPUC) decision in December 2022, i nvestor-owned utilities (IOUs) like Pacific Gas & Electric Company (PG&E) and other electric retail providers, including all of the other operating community choice aggregators (CCAs) in the Bay Area, have instituted new programs aligning compensation with the avoided cost benefits the program provides to non-participating customers.
As of April 15, 2023 , PG&E began placing eligible customers with rooftop solar and other eligible customer -sited renewable energy systems onto its “Solar Billing Plan ” (SBP), the new statewide framework replacing the previous Net Energy Metering (NEM) program. While CleanPowerSF continues to serve customers with rooftop and other onsite renewable energy systems under its existing NEM Program, we are actively developing our own version of the Solar Billing Plan to align with San Francisco’s clean energy goals. This proposal may be brought to the Commission for consideration in early 2026.
The current staff proposal includes four key elements:
• Energy Exports: CleanPowerSF would pay for energy exported by customer-sited renewable energy systems at a fluctuating rate that closely approximates this exported energy’s hour-by-hour and day -by- day value to CleanPowerSF’s ratepayers , rather than paying for the exported energy at CleanPowerSF’s retail rate. This avoided cost rate would reflect conditions in the electricity market while also capturing the additional value of emissions-free generation and avoided power supply capacity benefits to the state’s energy grid. These rates would be based on a state-approved tool in use by PG&E , other IOUs and CCAs like CleanPowerSF.
• Local Energy Credit: An additional credit to reflect the additional value of power generated specifically in San Francisco will be added to the hourly rate set by the state approved tool, which uses regional values for Northern California. This will be an extra $0.01/kilowatt-hour credit to all CleanPowerSF Solar Billing Plan customers who send electricity to the grid, regardless of the time of day.
• Equity Credit: Customers who are enrolled in an income-eligible energy discount program like the California Alternate Rates for Energy (CARE) or Family Electric Rate Assistance (FERA) programs, would receive an additional $0.07/kWh credit for their excess electricity they send to the grid.
• Compensation for Annual Surplus Generation: NEM customers who send more renewable energy to the grid than they use over a 12-month period receive Net Surplus Compensation (NSC). The NSC credit has been a fixed rate since program inception. Under the Solar Billing Program, s taff propose that the NSC credit be based on the market value of renewable energy credits, rather than a fixed amount, to better Page | 6
reflect the value of these benefits to CleanPowerSF’s ratepayers .
Customers will also be able to retain bill credits accrued from NSC at the end of the year for use in the following year , rather than having unused credits reset to zero, as is the practice under NEM.
Staff have shaped this proposal with public feedback gained in a variety of settings and venues, including:
• Solar Industry Listening Session (Fall 2024)
• Customer Webinar (February 2025)
• Stakeholder Workshop (June 2025)
This proposal has most recently been shared with interested parties and existing NEM customers in an October 28th email. This message can be found on CleanPowerSF’s website at https://www.cleanpowersf.org/solarbillingplan.
b) Budget Billing Program
In September CleanPowerSF successfully transitioned our pilot Budget Billing Program (BPP) to a fully operational program . This enhanced offering now balances all portions of a customer’s energy bill — including PG&E’s transmission and distribution charges as well as CleanPowerSF’s generation charges — providing a more predictable monthly payment experience. In October, we notified nearly 6,400 CleanPowerSF customers who were already enrolled in PG&E’s Budget Billing Program of their enrollment in our Budget Billing Program. These customers will begin participating with their December bills. Going forward, customers who enroll in either PG&E’s or CleanPowerSF’s Budget Billing Program will be automatically enrolled in both programs, ensuring seamless coverage across their entire energy bill , along with bill stability.
c) All-Electric Multifamily Program
The All -Electric Multifamily Program helps owners and representatives of multifamily affordable housing understand what it would take to transition their buildings from natural gas to efficient, all -electric systems. Offered at no cost and on a first-come, first-served basis, the program provides an electrification audit, a transition plan, guidance on available incentives, and technical support.
In October 2025, program eligibility expanded from serving eligible Hetch Hetchy Power customers to include multifamily affordable housing customers served by CleanPowerSF.
How the Program Works. Once an application is accepted, program staff gather basic building information and schedule a one-day site visit. During the visit, the team documents existing natural gas systems and electrical infrastructure and identifies opportunities to reduce energy use and streamline a future transition to electric equipment.
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After the assessment, the program provides the property with a tailored electrification roadmap that includes high-level energy and cost estimates and identifies relevant incentive programs and funding opportunities.
Program Progress and Expected Reach. The program has completed electrification assessments for nine multifamily affordable housing sites served by Hetch Hetchy Power, providing owners with actionable guidance on long- term electrification planning. With the expansion to CleanPowerSF, the program anticipates the capacity to support approximately 15 to 20 additional sites per year, depending on project complexity and demand.
The photo examples below illustrate the types of natural gas equipment commonly found in multifamily buildings —such as boilers, domestic hot water systems, and gas dryers —and demonstrate the value of on -site assessments in identifying electrification pathways that consider both current electrical service and future system needs.
As more CleanPowerSF-served properties explore electrification, this program will play a critical role in helping affordable housing providers plan for the transition and align with the City’s long-term climate and clean-energy goals.
Figure 4: Photos taken on a site visit of existing natural gas equipment such as a space heating boiler, domestic hot water heaters, clothes dryers, and an in-unit hydronic radiator
d) Peak Day Partners
In its seventh year, Peak Day Partners rewards participating large commercial customers for reducing electricity use between 4 p.m. and 9 p.m. on the hottest days from July through October. In 2025, the Program experienced the coolest summer in the Program’s history. As a result, only four Event Days were called. This is in contrast to the 28 Event Days called during the Summer of 2024, which was one of the hottest summers of the Program. With the close of the 2025 Peak Day Partners Season, CleanPowerSF staff will conduct an evaluation of the Program and its results.
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4. Energy Procurement and Planning Activities
a) Status of Renewable Energy & Storage Solicitations
Due to changes in energy markets described herein, the SFPUC conducted a bid refresh of PRO.0280, our most recent renewable energy solicitation, to allow proposers the opportunity to update their ini tial bid pricing. The bid refresh window opened in mid-August and closed on September 2nd. Staff has completed evaluation of the bid refresh and is currently in negotiations with the highest-scoring proposer.
b) Execution of SunZia Wind Power Purchase Agreement
On August 1, 2025, CleanPowerSF entered into a Power Purchase Agreement for a 100 MW share of the 3,500 MW SunZia Wind p roject located in New Mexico. CleanPowerSF’s contracted share of the SunZia Wind project is enough to power 105,000 average San Francisco homes. This project will increase the geographic diversity of the CleanPowerSF portfolio and will deliver valuable renewable generation in the winter months when solar and California wind generation is at its lowest. The SunZia Wind project is expected to begin delivering energy to CleanPowerSF in June 2026.
5. Regulatory Proceedings
a) Power Charge Indifference Adjustment Rulemaking
The Power Charge Indifference Adjustment (PCIA) is a surcharge that customers taking generation supply from direct access providers and community choice aggregators like CleanPowerSF must pay to PG&E. The fee is intended to recover the unavoidable above-market costs associated with power contracts PG&E entered into on these customers’ behalf prior to them switching from PG&E’s generation supply service. In theory, by collecting such above-market costs, the PCIA keeps PG&E’s remaining generation service customers “indifferent” to the departure of other customers to third-party generation suppliers, like CleanPowerSF.
CleanPowerSF’s competitiveness with PG&E’s retail service is measured, in part, by comparing CleanPowerSF’s cost of generation supply plus the PCIA rate against PG&E’s retail service generation rates. Higher PCIA rates could make CleanPowerSF less competitive relative to PG&E, possibly resulting in less revenue for CleanPowerSF to procure energy and deliver programs to customers.
PG&E’s PCIA rates are set annually by the California Public Utilities Commission (CPUC). In early 2025, due to recent volatility in California’s energy markets and concerns about the accuracy of PCIA rates, the CPUC initiated a new proceeding considering modifications to the methodology used Page | 9
to develop these rates for the three largest of California’s investor -owned electric utilities, including PG&E. The proceeding is advancing in two separate tracks. The first track concluded in June 2025 with a decision that modifies the dataset that the CPUC collects to calculate PCIA rates. Combined with energy market trends, this decision is expected to increase CleanPowerSF customer PCIA rates in 2026, from about $0.00530 cents per kilowatt-hour to about $0.03158 cents per kilowatt-hour on average. The second track, meant as a more holistic review of the PCIA rate setting methodology, is likely to continue for up to two more years.
The SFPUC’s Power Enterprise Regulatory and Legislative Affairs team is engaged in and representing the interests of CleanPowerSF in this proceeding.
In close coordination with the California Community Choice Association, s taff is focused on ensuring that the proceeding does not result in inappropriate cost shifts to CleanPowerSF customers through unfair PCIA rates.