San Francisco’s Public Power Expansion Reaches a Major Milestone
San Francisco is making significant strides toward expanding public power with the recent publication of the draft environmental impact report by City Planning. This milestone marks an important step in the City’s ongoing efforts to acquire Pacific Gas & Electric’s (PG&E) electrical assets and transition to a publicly owned power system.
Understanding the Environmental Impact Report
The draft environmental impact report serves as a critical resource for decision-makers and the public, providing details about the project and insight into potential environmental effects associated with the project. It also outlines strategies to minimize or mitigate negative impacts while presenting alternative options for consideration.
The report’s release on March 19 initiates a 45-day public comment period, offering an opportunity for community feedback. Following this period, the San Francisco Planning Commission will hold a public hearing on April 17 to discuss the findings and gather additional input.
Assessing the Fair Value of PG&E’s Assets
A key component of this transition is establishing a fair purchase price for PG&E’s electrical transmission and distribution assets within the City. The California Public Utilities Commission is currently conducting an independent evaluation to determine the fair-market value of these assets.
The Benefits of Public Power
By acquiring these assets, the City aims to provide more affordable, reliable, and safer electricity for all San Franciscans. Public power will streamline the process of integrating new grid connections for essential city services, including public safety, affordable housing, schools, and transportation. The transition to a public power model prioritizes safety, reliability, and cost savings for residents and businesses alike.
San Francisco Public Utilities Commission (SFPUC) has a century-long history of delivering clean, safe, and reliable electricity. Today, it already supplies more than 75% of San Francisco’s power. Expanding public power would allow all residents to benefit from the cleaner, more affordable, and dependable electricity provided by SFPUC.
How Public Power Saves San Franciscans Money
As a not-for-profit public utility, SFPUC reinvests its revenues back into the system rather than paying shareholder dividends, corporate taxes, or executive bonuses. The agency’s ability to access lower-cost financing further reduces costs for ratepayers while maintaining transparent and stable electricity rates.
The financial benefits of public power are already evident. In 2023 alone, Hetch Hetchy Power, SFPUC’s not-for-profit public power utility, saved customers over $120 million compared to PG&E rates. Additionally, the CleanPowerSF program saved customers another $50 million that year. Altogether, SFPUC customers saved more than $170 million on electric bills compared to what they would have paid PG&E.
The City is committed to ensuring a smooth transition to public power with minimal disruption to local communities. This initiative represents a crucial step toward a more affordable, reliable, and sustainable energy future for all San Franciscans.
For those interested in learning more about the draft environmental impact report, please visit sfplanning.org/sfceqadocs. Your input is valuable in shaping the future of public power in San Francisco.
