Power adjustment
Gonzalez offers key changes to public power plan

By Rachel Brahinsky

Hearings on Sup. Tom Ammiano's public power initiative were scheduled to begin June 25 – and already Sup. Matt Gonzalez says he plans to introduce changes that could strengthen the measure dramatically.

The public power measure, introduced just last week, is a departure from two sweeping energy-reform initiatives that failed narrowly at the polls last fall. This year Ammiano, along with Sup. Sophie Maxwell, wants to put a weaker measure before voters, with two key policy changes: his proposed public power agency would have only limited rights to issue revenue bonds to take over Pacific Gas and Electric Co.'s system, and it would be run by an appointed – rather than an elected – board of directors (see "Public Power Lite," 6/19/02).

Gonzalez is attempting to change both of those features, in a move that promises to stir up an intense public debate. "These two components seem to be fairly significant," Gonzalez told us. "They were important because they are in many ways the independent components of the measure. It's what would stop a future Board of Supervisors or future mayor from undermining [public power]."

Gonzalez – who also sits with Ammiano on the San Francisco Local Agency Formation Commission, which just completed a study on the city's energy options – said a new public power agency should have full-fledged rights to compete with PG&E or take over its infrastructure. "To not give them that authority is really tough," he said. "I think you can build in safety mechanisms, though, by saying you need to have the board oversee [such an action]."

Gonzalez is proposing that after an independent cost-benefit analysis is completed, the power agency board could proceed with utility acquisition. That analysis, and the decision to issue revenue bonds for a takeover, would be subject to appeal to the Board of Supervisors in a process similar to the one used for Planning Commission decisions.

He also said he would propose that the agency be managed by an elected 11-member board, representing the 11 existing supervisorial districts. Each supervisor would initially appoint one member each to the board; members would then face election in staggered terms, beginning in November 2003. The threat of being ousted, he said, would help keep the board moving forward with the public's agenda. "If an elected Public Utilities Commission had waited until now to come forward with plans to fix Hetch Hetchy, I think they would have been thrown out of office," he said. "They would have been tossed out with no hesitation." Repairs to the Hetch Hetchy water system have been long delayed and now are expected to cost the city some $4 billion.

Members of San Franciscans for Public Power, the city's only advocacy group solely devoted to the cause, have not reached consensus on the proposed changes. Some support having an interim appointed board that faces eventual elections but believe an 11-member body would be unwieldy. They prefer a 7-member board. Some public power advocates are unhappy with Ammiano's measure, saying it's too soft and won't ultimately challenge PG&E's control at city hall.

Ross Mirkarimi, SFPP spokesperson, said there's general consensus that the agency should have the right to acquire PG&E facilities. "You'll find common agreement growing amongst all partisans of this issue who feel that there should be a feasibility study connected to acquisition," he said, adding that the agency should be allowed to move ahead based on that study.

At press time Ammiano said he hadn't seen the proposal yet and was therefore unprepared to comment on it. "If he introduces them, they will be considered as part and parcel of the discussion," Ammiano said. "Where it will land is still to be determined."

However, in an op-ed in this week's Bay Guardian (see page 9), Ammiano states that he personally supports the goal of grid acquisition and that "if the board decides to pursue grid acquisition, I will stand with that decision."

E-mail Rachel Brahinsky at rachel@sfbg.com.