Citizens' Advisory Committee
Power Subcommittee

MINUTES

Tuesday, August 5, 2008
5:30 p.m. - 7:30 p.m.
1155 Market Street, 4th Floor Conference Room
San Francisco, CA

Members
Kimia Mizany – Chair
Nick Carlin
Aaron Israel
Steve Lawrence
Winchell Hayward

Members present: Kimia Mizany (Chair), Winchell Hayward, Steve Lawrence, Nick Carlin

Members not present: Aaron Israel

Staff: Jim Chien

Members of the Public:  Angela Hart

ORDER OF BUSINESS

1. Call to Order
Kimia Mizany, Chair, called the meeting to order at 5:40 pm.
 
2. Approval of Minutes
Minutes of meeting of July 2008 were adopted unanimously.

3. Announcements
Mr. Lawrence announced that today is his last meeting with the Power committee.

4. Public Comment
No public comment.

5.   Presentations and Discussion:

a. Update on Combustion Turbines CT ( Peakers ), Karen Kubick, Power Enterprise Infrastructure Manager

Ms. Kubick listed and compared three existing CT project alternatives:  1) Mirant Diesel Turbines at existing Potereo Diesel Peakers Units; 2) Mirant Retrofits Diesel Turbines at Potereo to Duel Fuel (natural gas and diesel); and 3) SFERP 3 City-owned GE Natural Gas LM 6000 CTs (installed at new 4-acre city site).

Ms. Kubick said there are a few CT legislative initiatives floating around in City Hall. Option 2, spearheaded by the Mayor, seems to be gaining momentum. This option will reduce operational hours, emissions, and can run both natural gas and diesel. Supervisor Peskin’s legislation would make sure the retrofit is clean and up to standards. Supervisor Maxwell also has her CT legislation. Ms. Kubick said however, she hasn’t seen any obligation to shut down the Mirant plant yet.

Ms. Kubick said the SFPUC Commission rescinded the original proposed CT project in July. While the SFPUC’s commission makeup is being reorganized, the CTs and any future power plant projects will have to wait for the Commission to fully assemble for approval and authorization.

Ms. Kubick said that if Mirant’s diesel retrofit to dual fuels receives approval, three of the Mirant peakers will be retrofitted. The City will be involved in a discretional action, but the CEC will not be involved this time, which will save time.

Mr. Carlin asked what would be done with the LM 6000 generators if the CT project is cancelled? Ms. Kubick said the SFPUC can consider selling them. She estimated their value is worth at about $2.5 million per unit, in accordance with the price set by the California PUC, for a total of $10 million. Planning and licensing money might also be full reimbursed. 

Mr. Carlin asked if the public power initiatives passes, will the city end up purchasing the plant? Karan responded, “I’m not sure.”

Ms. Hart asked how the Transbay Cable (TBC) project can help provide power after Mirant closes. Has an Environmental Impact Report (EIR) been done for the TBC project? Ms. Kubick said that after Transbay cable is constructed, Mirant’s operating hours will drop to 2 percent. She can provide EIR prepared by city of Pittsburg.

Ms. Kubick said that she is not sure what’s going to happen to the CT project next, but the Mirant project will need to be refined and go through the CEQA process if passed. The original proposed completion retrofit date is set for October 2010 and she thought it’s too optimistic.  The Transbay cable project is moving forward, however, she said.

Ms. Kubick also announced exciting news about the Mayor’s advocating energy conservation among City departments and the Main Library / City Hall solar projects.

b.  The Subcommittee will discuss developing suggestions/recommendations to the new SFPUC Commission on a strategic plan for the Power Enterprise, and the future direction of a City Energy Plan.

Ms. Mizany said that she strongly feels the enterprise can further enhance visions and strategies.  She urged committee members to formulate thoughts and ideas, and bring critical issues that haven’t been explored and engaged before to the table. She thinks it might be a good idea to put together statements/goals to present in the future, and to be active rather than reactive to the Power Enterprise’s future projects and goals.

Mr. Hayward suggested exploring the following two issues: 1) possibility of adding hydro units to encounter energy generation when water is released. (3 Megawatt). 2) Possibility of raising dam level for higher capacity to capture hydro power.

Mr. Israel suggested using the Power Enterprise’s existing visions/goals as a blueprint for further research.

Ms. Mizany indicated that she wants to push the envelope further and to look at what more the SFPUC can do in the future.

Mr. Carlin asked why the SFPUC still is not able to obtain bond financing?  Mr. Israel questioned why there is no progress on CCA and what the SFPUC is doing to demand/ hold PG&E accountable?

Mr. Hayward suggested delegating projects to each committee members for refinement of goals and further research. Chair Mizany assigned each committee members specific issues/subjects.  Here is a list of the assignments:

1) SF solar bond and other alternatives – Carlin

2) Power grid (Integrity) issue/ how SFPUC holds PGE accountable? - Mizany

3) Energy efficiency - Mizany

4) CCA / public power - Israel

5)  Power generation from the dam –Hayward.

C. Discussion and possible action to move next regular meeting from September 2 to September 9 due to Labor Day holiday.
Passed to move regular meeting to September 9, 2009.

6. The meeting adjourned at 7:31 PM.