MINUTES Tuesday, August 8, 2006 1:30 P.M. City Hall, Room 400 1 Dr. Carlton B. Goodlett Place COMMISSIONERS The Honorable Richard Sklar, President The Honorable Ryan L. Brooks, Vice President The Honorable E. Dennis Normandy The Honorable Ann Moller Caen The Honorable Adam Werbach

DEPARTMENTS AND ENTERPRISES Water Enterprise Wastewater Enterprise Power Enterprise Infrastructure Business Services External Affairs Gavin Newsom MAYOR   Susan Leal GENERAL MANAGER Mary Y. Jung SECRETARY

ORDER OF BUSINESS:

1. Call to Order: 12:34 P.M.

2. Roll Call: Present - President Richard Sklar, Commissioner E. Dennis Normandy, Commissioner Ann Moller Caen, Commissioner Adam Werbach (arrived 1:03 P.M.)

Excused: Vice President Ryan L. Brooks

President Sklar opened the meeting and explained the meeting would be composed of three parts: (1) discussion on global warming, (2) workshop on Community Choice Aggregation, and (3) regular SFPUC business.

3. Discussion on Global Warming Impacts: San Francisco Water System

a) California Department of Water Resources - Technical Memorandum Report

"Progress on Incorporating Climate Change Into Management of California's Water Resources" (July 2006) http://baydeltaoffice.water.ca.gov/ and Discovery Channel - "Global Warming: What You Need to Know with Tom Brokaw" http://dsc.discovery.com/convergence/globalwarming/globalwarming.html (July 2006)

President Sklar introduced Board of Supervisors (BOS) Member Micaela Alioto-Pier, Commission on the Environment (COE) President Paul Pelosi, and Department of the Environment (DOE) Climate Action Coordinator Melissa Capria. He began the meeting by expressing a personal note of sadness with the news of the death of former BOS member Sue Bierman, a long-time activist and former City Planning Commissioner who served the City well.

Ms. Susan Leal, General Manager of Public Utilities, stated the global warming discussion was long overdue and welcomed the opportunity to work within San Francisco's City family, as well as with other coastal cities such as Seattle and Los Angeles, to come up with a serious plan.

President Sklar explained the discussion would be focused on the San Francisco water system and what could be done to mitigate the effects of global warming, and not on whether or not global warming existed and what caused it. He remarked on a conference he attended recently in New York City regarding global warming and detailed three areas of impact in the City that needed attention: (1) The water supply would be impacted by the faster snow melts, and eventually the diminished snow pack; (2) There would be a significant rise in sea level and the treatment plants built along the shoreline could be inoperable; and (3) The intensity and duration of storms would change and would result in more street flooding.

As President Sklar explained the issues surrounding water supply and storage, he brought up increasing additional water storage capacity to make up for the loss of the reservoir equivalency of the snowpack. He stated the SFPUC must look at all surface water storage options including the possibility of raising the O'Shaughnessey Dam. He recognized that this would meet objections, but said the agency must not discard any option at this point. President Sklar described the problems in expanding the other three reservoirs to meet this need. He also pointed out two additional areas which needed solutions: (1) The extra 200 MGD SFPUC delivers in the summer for water used for less-essential irrigation (lawns, golf courses, and cemeteries) and air conditioning needed to be addressed and staff were instructed to enter into discussions about dual pricing for water and charging more for this discretionary water. He stated 80 percent of the water used in California was used for growing crops, noting many of the crops would be better grown elsewhere. The idea of reallocating water based more on need and value rather than history must be addressed. Beyond the water storage problems, the SFPUC would have to factor in potential flooding in areas where the water treatment plants were located that might render them inoperative and increased localized city flooding.

Supervisor Alioto-Pier applauded the Commission for moving forward and showing real leadership on the issue. She stated she looked forward to working with the Commission to further the goals and the City's combat against global warming.

COE President Pelosi thanked the Commission for the invitation to participate in the global warming discussion and thought the focus as described was correct. He stated he believed it was important, from an environmental perspective, to review the trade offs and environmental impact and weigh it with other considerations and options to come to arrive at a complete solution to serve the City over the long haul.

Ms. Capria expressed her excitement about the initiative taking place and pointed out the work the SFPUC and the DOE did on the "Climate Action Plan". She mentioned the State of California issued a report, "Our Changing Climate", that was available on www.climatechange.ca.gov, and distributed a package of information regarding climate change and global warming from other U.S. cities. She also stated excellent research had been done between major cities and their universities and suggested the City look to the academic institutions and the State for additional resources.

President Sklar suggested that Ms. Laura Spanjian, Assistant General Manager of External Affairs, make the information available on the SFPUC website.

In response to questions from President Sklar, Mr. Michael Carlin, Assistant General Manager of Water, stated the snowpack in the Sierras was important and acted as a reservoir for water supply and hydroelectric power production. He stated the inflow and outflow was managed closely so that it could be put to its most beneficial use. President Sklar asked about the impact of the predicted 30 to 90 percent snowpack reduction in the forthcoming years. Mr. Carlin replied the changes would be significant from a water supply and hydroelectric standpoint. President Sklar remarked the SFPUC was embarking on a plan to generate more clean energy. He asked Mr. Carlin whether more water storage at O'Shaughnessey Dam was better for the fisheries downstream. Mr.Carlin replied in the affirmative and noted a man-made reservoir could mimic stream flow releases in the summer months and benefit downstream uses and fish.

Commissioner Normandy stated that the City, in its coordination efforts with other cities, should also work with their fifteen Sister Cities around the world as they were facing the same issues.

Mr. Carlin introduced Dr. Bruce McGurk, Manager of Operations at Hetch Hetchy, the SFPUC's technical point person. Dr. McGurk explained the water system was designed to operate over a large range of conditions and was aware of the risks with the large changes of snow melt runoffs. He stated he was conducting a preliminary study to look at warming patterns for the next 20 to 30 years and planned to expand it to the year 2100.

President Sklar introduced Mr. Art Jensen, General Manager of Bay Area Water Supply and Conservation Agency (BAWSCA), remarking he was planning on attending BAWCA's Board Meeting on September 21, 2006, to discuss global warming and related charges for water use. Mr. Jensen stated the subjects President Sklar planned to address at the Board Meeting were timely and necessary and it was apparent water use would have to change, including landscaping and irrigation usage.

Commissioner Adam Werbach arrived at 1:03 P.M.

Mr. Tom Franza, Assistant General Manager of Wastewater, addressed the issue of the rising sea level and its impact on the wastewater treatment plants. Mr. Franza explained the rising sea level had been a long-time concern, especially since the plants depended upon gravity and a rise in tide level would fill the system with salt water, a substance the plants were not built to handle. He stated this concern was included as part of the Wastewater Master Plan.

President Sklar asked Mr. Tony Irons, Deputy General Manager of Capital Projects, whether or not the Water System Improvement Program (WSIP) addressed the issues raised by global warming. Mr. Irons replied it did not, as the WSIP was primarily a seismic program. He opined the global warming discussion would allow staff to look at the system and make appropriate alterations if necessary.

Commissioner Normandy reminded everyone that the aquifers needed to be protected and considered in all the planning.

Public Comments:

Ms. Heather Dempsey, Tuolumne River Trust, stated they support the SFPUCs investigation of the impacts of climate change and thought the SFPUC could be a leader in this effort and provide innovative ideas, and asked the agency to try not to engineer a solution out of the problem. She asked that the idea of raising the O'Shaughnessey Dam be dropped quickly.

President Sklar asked if the Commission agreed that the General Manager and staff start to undertake studies to quantify these impacts and examine all the available solutions. The Commission agreed and General Manager Leal ensured that such work would start and would examine all possible solutions. The Commission indicated it would like regular reports on progress and Ms. Leal should inform the Commission when her next report would be on these issues after a plan and schedule were developed.

President Sklar closed the discussion by allowing this was the first of many discussions with input coming from many different stakeholders. He stated he looked forward to future meetings with plans and presentations from staff as they were developed.

SPECIAL ORDER OF BUSINESS
Power Workshop

4. Power Workshop

a) Presentation of revised Power Enterprise objectives

b) Status of Community Choice Aggregation program development and collaboration with elected officials and stakeholders.

c) Discussion of Community Choice Aggregation Implementation Plan as it relates to Power Enterprise goals.

d) Discussion of Community Choice Aggregation Implementation Plan as it relates to Power Enterprise goals.

President Sklar opened the Power Enterprise Workshop by referring to a large sign board that listed the six principles the SFPUC used as guidelines when discussing power issues: (1) reliable, (2) greener, (3) lowest net cost to the user, (4) control, (5) energy efficiency, and (6) self-sustaining (not subsidized by other enterprise funding).

Ms. Leal introduced the Workshop by outlining the three parts of the presentation. She mentioned the exciting possibility of supplying green power in Bayview Hunter's Point.

Ms. Barbara Hale, Assistant General Manager of Power, presented detailed definitions of the six guiding principles, explaining how the SFPUC adhered to all the definitions with the exception of no. 6, "self sustaining," remarking that some renewable programs were allowed some subsidies and it was a conscious political choice. Commissioner Werbach asked for specifics on the programs and offered to send them to her for incorporation into the program.

Ms. Hale reported Community Choice Aggregation (CCA) consisted of a partnership with Pacific Gas and Electric Company (PG&E) contracting for energy efficiency to service San Francisco residents and businesses, and PG&E would provide transmission and billing services. President Sklar reiterated earlier discussions that the SFPUCs objective was to be free to generate wherever and however we thought was in the best interests of the City and sell it to whomever we wanted to.

Ms. Hale agreed with this and showed a sample bill from PG&E with CCA and explained the different line items. She stated the generation component was listed separately, as was a cost responsibilities surcharge - a charge where the State of California required customers to pay their fair share. Ms. Hale reported the California PUC (CAPUC) would establish the surcharge when the SFPUC presented the CCA Implementation Plan to the CAPUC for certification. She stated she expected the BOS' CCA ordinance would have the SFPUC relying extensively on renewable resources and energy. Ms. Hale reported staff had been working collaboratively with stakeholders for over a year and $5 million was allocated in the budget for work on CCA. She introduced Mr. Paul Fenn, Executive Director of Local Power, to address the Commission on the CCA plan.

Mr. Fenn provided extensive detail on the CCA plan and how it meshed with the six guiding principles. He included information on the proposed portfolio of resources and stated the program was reliability neutral. Mr. Fenn stated the program was greener and was considered the largest municipal green power. Mr. Fenn was questioned about lowest net cost. He explained the request for proposals required bidders to beat PG&E rates and customers would pay less for electricity, even after all the costs were added. Mr. Fenn further explained that customers would have the opportunity to opt out of the program without penalty up to 60 days after transferring to the new service. He allowed there had been discussions of higher rates in the earlier years of the program and stressed this could not happen because of the opt out allowance. He stated there was discussion about mixing the public works projects with financing, and power contracts coming in and reverse amortization to ensure the higher costs in the early years do not get passed onto consumers immediately. Mr. Fenn maintained this was important to have stable, long-term, and competitive rates.

Mr. Fenn explained the City would have control as the CCA plan had the ability to set its own portfolio and decide on priorities, such as how green should the City be? Under questioning from Commissioner Werbach, Mr. Fenn described the lessons learned regarding maintaining control of the program from examining the CCA programs in other states. Mr. Fenn stated it was the intent of the CCA plan to be self-funded.

Public Comments:

Mr. Bruce Wolfe, Sierra Club, thanked the Commission for showing how simple energy solutions could be and for being a model for replication everywhere.

Mr. John Manning, Sierra Club and a professional mechanical engineer, stated that San Franciscan's could be assured there were vendors who would bid on the CCA RFP.

Mr. Tom Brown, President of San Francisco for Democracy, stated his membership voted to endorse CCA and would hold the elected officials and Commissioners accountable for its implementation.

Mr. Ken Smokoska, Sierra Club Vice Chair, reported there was a national Sierra Club conference in San Francisco the previous year and the delegates voted CCA and climate change as the priority issues.

Mr.Charles Adams reported he worked on many jobs in San Francisco and other counties and found the City's costs too high and provided some examples. President Sklar directed Mr. Adams to speak with Mr. Irons about this.

Mr. Dave Massen, Sierra Club volunteer, stated he appreciated the hard work that went into CCA and remarked the City was in a race against time to develop economically priced energy.

Mr. Eric Brooks, coordinator for Our City, stated the organization had been working on bringing big renewables into San Francisco since 2004 and their canvassing showed there was public support behind CCA.

Mr. John Rizzo, Chair of the Sierra Club - San Francisco Bay Chapter, reported Scientific American and other mainstream publications were reporting that the world's production of oil was peaking and gas was expected to rise to as much as $300 a barrel for oil and asked that this be factored in when discussing the high cost of solar power.

Mr. Ed Dierauf, San Francisco resident, spoke on behalf of tidal power as a clean source of energy generated at a reasonable price.

Mr. Aaron Israel, SFPUC Citizen's Advisory Committee, encouraged the Commission to move quickly on CCA. He opined building 360 kw of renewable energy was feasible, as countries such as Germany and Japan built 300 mw the previous year.

Ms. Yvette Simpson, Greenpeace, urged the Commission to support the plan as the City needed to be better prepared and not rely on the federal government.

Mr. Rory Haas, Pacific Environment, stated the residents of San Francisco would prefer to purchase renewable energy instead of the energy produced from PG&E’s gas pipelines.

Ms. Kathleen Sullivan, Greenpeace, stated she had been active with the CCA Task Force since 2004 and helped draft some of the documents. She reported extensive work on risk management was done to protect the City and urged the Commission to release the Request for Proposals (RFP) as soon as possible to test the waters. She also offered the Commissioners a t-shirt supporting clean energy.

Ms. Dina Maclun, San Francisco resident, stated CCA provided the only way the City was going to meet its environmental goals.

Mr. Parjanya Rijah, Greenpeace, stated it was common in the past for public works projects to arise out of crises and that global warming constituted such an emergency.

Mr. George Robach, an engineer and artist, spoke on behalf of innovation as a major component for solving the energy problem and stated CCA was a noble goal.

Ms. Gail Isaac, Sierra Club, reported PG&E was in the process of seeking approval for new plans that could increase the fees that the City has to pay and stated she thought the City should try to avoid those fees.

Mr. Charles Kadish, San Francisco resident, stated energy efficiency was the biggest energy source and cited a study that confirmed this. He reported that during the 1979oil crisis, citizens saved 15 percent in oil use and grew the economy by 16 percent at the same time.

Ms. Julie Peters, Local Power, stated she was grateful the City was talking bold actions to save the earth.

Ms. Kathy Perl, San Francisco resident, thanked the Commission for the workshops and opined solar energy needed to be installed on a large scale.

The Commission recessed at 2:25 P.M. Commissioner Normandy was excused at 2:25 P.M.

The Commission reconvened at 2:41 P.M. and continued with the discussion on CCA.

President Sklar showed a short clip from a recent Discovery Channel show regarding global warming with Tom Brokaw, summarizing the water crisis facing the world as a result of global warming and asking what solutions could be put in place to solve the problem. President Sklar continued with the CCA discussion, stating the SFPUC was committed toward renewable energy programs and leading the City down the correct path.

Ms. Hale reported the Power Enterprise was in the process of hiring staff for proceeding with the plans for CCA. She explained a Request for Information (RFI) was also drafted to allow for more input from potential bidders and customers to ensure the program was structured to work properly. She stated an RFP would be issued afterwards for selecting a wholesale provider and staff was looking carefully at the financing options and timing to ensure the desirable renewables mix.

President Sklar stated an assessment had to be made from the RFI, and afterwards, the Commission would decide whether or not to go forward with CCA and how this would be done if the decision was made to move ahead. A discussion ensued between President Sklar, Commissioner Werbach, and Ms.Hale regarding the process for the RFI and implementation plan. President Sklar asked that the assessment be included on the schedule of activities and most logically should take place and a decision be made on whether/how to proceed before finalizing an implementation plan.

President Sklar inquired about the schedule. Ms. Hale replied the information gleaned from this workshop would help craft the RFI by the end of the year, and the message to customers would be, "Here's the sort of CCA program we want to have,” and to energy service providers, “will you bid and perform as we envision here?”, followed by a request to the customers to join the SFPUC CCA program.

Mr. Fenn stated the BOS was planning to vote on an RFI and RFP, but much work needed to be produced between the two Requests before the roll-out of the renewables plan. President Sklar replied there could not be an implementation plan until the information provided by the RFI gave an idea on how to proceed.

Mr. Fenn explained the implementation plan would be submitted to the CAPUC and would not constitute a binding notice of intent. He explained it provided the process for determining the exit fee and the opt out rate. He stated the exit fee amount was needed before the SFPUC could talk to suppliers and before negotiations could begin with PG&E. President Sklar replied the Commission wanted to hear the results from the RFI and decide on a plan and an RFP.

Commissioner Werbach asked what was expected to be learned from an RFI. Ms. Hale responded the RFI was an opportunity to test information and understanding of what works and what does not before issuing an RFP.

Ms. Leal explained the project needed to move forward to make sure there was a customer base in place so that the SFPUC could go to the rating agencies to float bonds.

Commissioner Caen asked if there were successful models of CCAs. Mr. Fenn replied in the affirmative, but stated there had been no major urban CCA.

President Sklar asked if anyone had contact with potential major users such as hotels and laundries, and received commitments from them to participate? Mr. Fenn replied presentations were made, but no commitments were secured. President Sklar opined large users such as the Embarcadero Center, downtown buildings, university complexes, and the Mission Bay complex were needed to make the program a success.

President Sklar and Mr. Fenn discussed at length the details regarding exit fees and opt out scenarios. President Sklar had questions about the contract between the SFPUC and the customer, the rate guarantee, and how there could not be a contract until the rates were known. President Sklar asked Mr. Fenn and Ms. Hale to return to the Commission with a plan. Mr. Fenn agreed to work with Ms. Hale and remarked the SFPUC had an economic paradigm with CCA and that a study by Nixon Peabody would persuade the Commissioners that CCA would work. He agreed to send the study to the Commissioners. President Sklar pointed out that until there was an assured customer base and the SFPUC could predict revenues, it would be hard to start to make investments and commitments.

5. Approval of Minutes

The minutes were continued to the next Regular Meeting.

a) Minutes of the July 11, 2006, Regular Meeting

b) Minutes of the July 25, 2006, Regular Meeting

6. Public Comments

Ms. Eva Skoufis, Laundromat owner, stated her water bill was extremely high and asked the Commissioners for help. She explained she could not invest in energy efficient machines because her lease was expiring soon. Commissioner Werbach noted this was the third time Ms. Skoufis had appeared before the Commission and he asked for follow up to the previous Commission request for a report on providing a joint investment program with a high water user. He suggested the Commission could possibly find a model and asked the report be delivered in six weeks.

Ms. Katherine Roberts, San Francisco resident, stated solar power was expensive to install and would only work if everybody could afford it.

Mr. Emeric Kalman, San Francisco resident, stated he was concerned with the cost of services in San Francisco. He pointed to a report that stated San Francisco sewer rates were twice as high as the national average.

7. Communications

There was no discussion.

8. Other Commission Business

Commissioner Werbach remarked there were only three Commissioners available for Closed Session, and suggested the interviews for the Administrative Secretary position be rescheduled for another day. The Commissioners asked the Commission Secretary to reschedule the interviews. The Commission cancelled the meeting of August 22, 2006, and stated the next Regular Meeting of the Commission would be on September 12, 2006.

9. Report of the General Manager

a) Water System Improvement Program

Mr. Tony Irons, Deputy General Manager of Capital Projects, reported the next Quarterly Report would be distributed on August 10, 2006. He stated staff would be bringing before the Commission a request for as-needed contracts, and they included construction management services, engineering, and environmental permits.

CONSENT CALENDAR

10. Moved by Commissioner Caen, seconded by Commissioner Werbach, to adopt items (a-b) listed under the Consent Calendar; passed (3-0) unanimously.

a) Resolution No. 06-0130: Award Water Enterprise, Water Main Replace/Retrofit Program-funded Contract No. WD-2395, Valencia Street 8, 16 and 24-Inch Ductile Iron Pipe Main Installation, in the amount of $3,469,083, to Shaw Pipeline, Inc.

b) Resolution No. 06-0131: Accept work performed for Water Main Replace/Retrofit Program-funded Contract No. WD-2459, Monterey Boulevard 8-Inch Ductile Iron Pipe Main Installation, by Shaw Pipelines, Inc.; approve Modification No. 1 decreasing the contract by $139,424, for a total contract amount of $1,189,476, and Modification No. 2 (Final) for a 9 non-compensable calendar day time extension, for a total contract duration of 309 consecutive calendar days; and authorize final payment of $98,748 to the contractor.

REGULAR BUSINESS

11. Discussion and possible action related to Agreement No. DB-112, Solar Photovoltaic Renewable Energy Plants.

Moved by Commissioner Werbach, seconded by Commissioner Caen, to adopt the following resolution; passed (3-0) unanimously.

Resolution No. 06-0132: Award Power Enterprise Solar Power Project-funded Agreement No. DB-112, a design-build agreement for turnkey design and construction of two solar photovoltaic renewable energy plants, to Design-Build Solutions Inc., for an amount not to exceed $492,964.16 over the life of the project; and authorize the General Manager of Public Utilities to negotiate and execute said agreement.

PROFESSIONAL SERVICE CONTRACTS

12. Discussion and possible action related to Agreement No. CS-812, Energy Efficiency Services.

Moved by Commissioner Werbach, seconded by Commissioner Caen, to adopt the following resolution; passed (3-0) unanimously.

Resolution No. 06-0133: Award Power Enterprise project-funded Agreement No. CS-812 to Cogent Energy, Inc.; EMCOR Energy Services, Inc.; HDR/ Brown, Vence & Associates, Inc.; and kW Engineering, Inc. to provide energy engineering services; and authorize the General Manager of Public Utilities to negotiate and execute said agreement with each of the above firms for an amount not to exceed $2,450,000 (and a total budgeted amount not to exceed $9,800,000), and with a duration of 60 months, with two one-year options, or, in the event negotiations are not successful or City requirements are not satisfied, to negotiate and execute a professional services agreement with the next highest ranked proposer.

13. Discussion and possible action related to Agreement No. CS-822, Environmental Analysis Services, San Francisco Recycled Water Projects.

Moved by Commissioner Werbach, seconded by Commissioner Caen, to adopt the following resolution; passed (3-0) unanimously.

Resolution No. 06-0134: Award Water Enterprise Water System Improvement Program-funded Agreement No. CS-822 to Environmental Science Associates to provide environmental analysis services and authorize the General Manager of Public Utilities to negotiate and execute said agreement for an amount not to exceed $450,000, and with a duration of 36 months or, in the event negotiations are not successful or City requirements are not satisfied, to re-advertise the request for proposals.

14. Discussion and possible action related to Agreement No. CS-834, Environmental Documentation Services for the Water System Improvement Program (WSIP).

Moved by Commissioner Werbach, seconded by Commissioner Caen, to adopt the following resolution; passed (3-0) unanimously.

Resolution No. 06-0135: Award Agreement No. CS-834 to four pre-qualified environmental consultants - Jones & Stokes; ESA/Orion JV; Ecology and Environment, Inc./Avila/AGS JV; and Tetra Tech/WRE JV; and authorize the General Manager of Public Utilities to negotiate and execute one or more professional service agreements with the pre-qualified consultants, based on the selection process set forth in the Request for Qualifications, to perform environmental review and analysis services for WSIP projects to satisfy regulatory requirements, for a total amount not to exceed $9.8 million, and with a list duration of two years.

CLOSED SESSION

15. Public comments on matters to be discussed in Closed Session.

There was no public comment.

16. Motion on whether to assert the attorney-client privilege regarding the matters listed below as Conference with Legal Counsel.

Moved by Commissioner Caen, seconded by Commissioner Werbach, to adopt the following resolution; passed (3-0) unanimously.

The Commission went into Closed Session at 3:41 P.M.:

17. Public Employee Appointment/Hiring - Pursuant to California Government Code Section 54957 and San Francisco Administrative Code Section 67.10(b).

Position: Administrative Secretary, Public Utilities Commission

There was no discussion.

18. Threat to Public Services or Facilities - Pursuant to California Government Code Section 54957 and San Francisco Administrative Code Section 67.10(a).

Consultation with: Agency Chief of Security concerning security of SFPUC Water and Power Systems.

There was no discussion.

19. Conference with Legal Counsel - Pursuant to California Government Code Section 54956.9(a) and San Francisco Administrative Code Section 67.10(d)(1).

Present were: President Sklar, Commisioner Caen, Commissioner Werbach, General Manager Leal, Deputy General Manager Irons, Assistant General Manager of External Affairs Spanjian, Assistant General Manager of Power Hale, Utility Specialist Manual Ramirez, Manager of Redevelopment Projects Sam Larano, SFPUC Legal Counsel Noreen Ambrose, Deputy City Attorney Theresa Mueller, and Commission Secretary Mary Jung.

Existing Litigation: Pacific Gas and Electric Company v. City and County of San Francisco; U.S. Bankruptcy Court, Northern District of California, Case No. 01-30923-DM; Filed June, 2004.

There was no action.

20. Conference with Legal Counsel - Pursuant to California Government Code Section 54956.9(a) and San Francisco Administrative Code Section 67.10(d)(1).

Present were: President Sklar, Commisioner Caen, Commissioner Werbach, General Manager Leal, Deputy General Manager Irons, Assistant General Manager of External Affairs Spanjian, Assistant General Manager of Power Hale, Utility Specialist Manual Ramirez, Manager of Redevelopment Projects Sam Larano, SFPUC Legal Counsel Noreen Ambrose, Deputy City Attorney Theresa Mueller, and Commission Secretary Mary Jung.

Existing Litigation: Pacific Gas and Electric Company, Federal Energy Regulatory Commission, Docket No. ER05-1190-000; Filed July 1, 2005.

There was no action.

21. Conference with Legal Counsel - Pursuant to California Government Code Section 54956.9(a) and San Francisco Administrative Code Section 67.10(d)(1).

Present were: President Sklar, Commisioner Caen, Commissioner Werbach, General Manager Leal, Deputy General Manager Irons, Assistant General Manager of External Affairs Spanjian, Assistant General Manager of Power Hale, Utility Specialist Manual Ramirez, Manager of Redevelopment Projects Sam Larano, SFPUC Legal Counsel Noreen Ambrose, Deputy City Attorney Theresa Mueller, and Commission Secretary Mary Jung.

Existing Litigation: Pacific Gas and Electric Company, Federal Energy Regulatory Commission, Docket No. ER00-565-018, et al.; Filed November 1999.

There was no action.

22. Conference with Legal Counsel - Pursuant to California Government Code Section 54956.9(a) and San Francisco Administrative Code Section 67.10(d)(1).

Present were: President Sklar, Commisioner Caen, Commissioner Werbach, General Manager Leal, Deputy General Manager Irons, Assistant General Manager of External Affairs Spanjian, Assistant General Manager of Power Hale, Utility Specialist Manual Ramirez, Manager of Redevelopment Projects Sam Larano, SFPUC Legal Counsel Noreen Ambrose, Deputy City Attorney Theresa Mueller, and Commission Secretary Mary Jung.

Existing Litigation: Pacific Gas and Electric Company v. City and County of San Francisco; Federal Energy Regulatory Commission, Docket No. EL05-133-000; Filed June 29, 2005.

There was no action.

23. Conference with Legal Counsel - Pursuant to California Government Code Section 54956.9(a) and San Francisco Administrative Code Section 67.10(d)(2).

Present were: President Sklar, Commisioner Caen, Commissioner Werbach, General Manager Leal, Deputy General Manager Irons, Assistant General Manager of External Affairs Spanjian, Assistant General Manager of Power Hale, Utility Specialist Manual Ramirez, Manager of Redevelopment Projects Sam Larano, SFPUC Legal Counsel Noreen Ambrose, Deputy City Attorney Theresa Mueller, and Commission Secretary Mary Jung.

Anticipated Litigation: As Plaintiff

There was no action.

The Commission went out of Closed Session and reconvened in Open Session at 4:37 P.M.

24. Announcement following Closed Session.

Following Closed Session, President Sklar announced the actions taken during Closed Session.

25. Motion regarding whether to disclose the discussions during Closed Session.

Moved by Commissioner Caen, seconded by Commissioner Werbach, not to disclose the discussions during Closed Session; passed (3-0) unanimously.

There being no further business to discuss, the meeting was adjourned at 4:38 P.M.

Mary Y. Jung
Secretary