The success of San Francisco’s ambitious public power program will depend on whether residents will want to pay at least another $7 per month on their electric bills for cleaner energy than is provided by PG&E.
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San Francisco’s ambitious effort to sign a deal with an energy provider to compete directly with PG&E has failed for a second time in the past year, forcing The City to scale back its plans for public power.
This week, San Francisco Public Utilities Commission officials revealed that the four companies that submitted bids to run The City’s energy program, known as CleanPowerSF, "failed to meet minimum qualifications and minimum proposal requirements."
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The City is recharging its effort to bring in an energy provider to compete with PG&E.On Friday, the San Francisco Public Utilities Commission will present a new proposal for soliciting energy companies to run CleanPowerSF, a proposed program that aims to provide energy from more renewable resources than PG&E and at competitive prices.
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Plans to find a new power provider in San Francisco stalled due to financing issues.
A new city-backed program, CleanPowerSF, is planned to compete with PG&E for electricity sales.
To ensure that CleanPowerSF monthly residential bills are within $1 of PG&E’s for the program’s first three years, up to $400 million is planned to be borrowed.
The loans would be repaid, if necessary, using increased rates in later years.
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A program to bring in a power company to compete with PG&E in The City has been formally introduced and could begin as early as this year.
Under CleanPowerSF, electricity would be sold by startup Power Choice using PG&E’s power lines, billing systems and other assets.
PG&E customers will be automatically enrolled as CleanPowerSF customers unless they opt out of the program, which is made possible by California’s community choice aggregation laws.
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City workers have personally pitched power sales planned under the upcoming CleanPowerSF program to nearly 100 groups.
The program aims to create a competitor to Pacific Gas & Electric Corp., which presently enjoys a monopoly in San Francisco. The program could begin within several months.
It’s unclear at this point how much the power would cost or how much of it will be drawn from renewable sources.
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The plan to set up a new power program in The City that aims to foster competition with PG&E garnered approval from the state, leaving a handful of hurdles before utility users could be switched to a new provider.
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As The City is moving forward with trying to establish CleanPowerSF – a city energy program, also known as Community Choice Aggregation, meant to provide customers with energy from more renewable sources than PG & E at competitive rates – PG & E is fighting the effort in San Francisco and elsewhere.
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The Local Agency Formation Commission, chaired by Supervisor Ross Mirkarimi, meets Friday and will discuss progress being made on CleanPowerSF, otherwise known as Community Choice Aggregation. City officials have been trying to set up the program prior to the June election, when a measure placed on the ballot by Pacific Gas & Electric would make such programs nearly impossible to establish by requiring a two-thirds voter approval.
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05/14/10 12:00 AM
PG&E must let a would-be San Francisco competitor use its transmission lines and other assets, but negotiations are stalled regarding the awkward arrangement.San Francisco is working to set up a community choice aggregation program, which would have a startup power provider brought in to compete against PG&E.
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