A PLAN THAT could begin the process of getting San Francisco into the retail electric-power business cleared the Local Agency Formation Commission May 13, and even Mayor Gavin Newsom now seems open to the plan. That's a big step forward, and the supervisors should approve the plan as quickly as possible so the city can avoid higher "exit fees" when customers walk away from Pacific Gas and Electric Co.

The hearings, discussion, and vote on the issue also demonstrate the enduring value of LAFCo, which initially was set up as a short-term panel to assess a municipal utility district but has since, with Sup. Ross Mirkarimi as chair, become the primary forum for discussion on the city's energy future. LAFCo is completing a public power study that will evaluate the benefits of a full-scale municipal utility. The panel is still discussing how to raise the PG&E franchise fee. It's been the place where activists can talk about solar, wind, and tidal energy.

The city badly needs a standing committee on energy policy, and unless and until the supervisors decide to create one themselves, LAFCo can, and should, remain in that role. And any further proposals to eliminate the agency should be dead on arrival.