PG&E union mounts attack on Clean Power SF

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The union that represents PG&E workers -- and has opposed every single public-power initiative in modern San Francisco history -- just launched an attack on Clean Power SF. And the union's business representative is having a hard time explaining exactly why he's working with PG&E to try to undermine this modest step toward public power.

Hunter Stern, with IBEW Local 1245, sent a press release out Sept. 11 announcing the start of a campaign to convince the supervisors not to approve the Clean Power SF plan. The line of attack: Shell Energy, which got the contract to supply sustainable energy to customers in the city, in competition with PG&E. The pitch:

San Francisco city government is considering a proposal to partner with Shell Energy of North America to inaugurate SF’s so-called “clean power” program. If the Board of Supervisors approves the proposal, San Francisco would pay millions to Shell, one of the most notorious environmental violators in business today.

Shell's a pretty bad company. So is PG&E. So is just about everyone in the energy business. Not justifying Shell's behavior, just noting: If you want a contractor to deliver electricty to San Francisco, you aren't going to get a cool independent small business. You aren't even going to get Google. These folks are evil, all of them.

Oh, and by the way: Shell Energy also sells power to PG&E (pdf). Stern's boss has a contract similar to what the city is going to get. So the PG&E power we all pay for today is in part Shell power. And as Sup. David Campos points out, it wasn't as if the city chose Shell over some better competitors: There was no other company out there anywhere in the world that responded to the city's bid process and offered to work with Clean Power SF.

The key point here is that Clean Power SF is going to use Shell as a bridge -- the private outfit will deliver power generated at renewable facililities to the city's power operation, which will resell it to customers ... for a while. The goal is to use the revenue stream from the sales of power to back bonds that will allow the city to build its own renewable energy system. Five, maybe ten years down the road, San Francisco will have solar generators on city property (including large swaths of Public Utilities Commission property in the East Bay), wind generators, maybe at some point tidal generators, and will be able to sell cheap, clean, local power to customers. Shell will be gone.

Let's face it: this is a step on the path to creating a city-owned and city-run power system -- that is, a step to eliminating PG&E as a player in San Francisco's energy future. Public power will be cheaper and cleaner -- and it's going to take a while to get there. Which is why we need to start now.

PG&E knows this, too, and is fighting to block Clean Power SF, which comes before the board's Budget and Finance Committee Sept. 12. Now IBEW is allied, as usual, with the giant company.

The Stern press release talks about how Clean Power SF will be expensive:

The average home can expect to see a rate increase of 77% over their current PG&E electricity generation rates. That comes out to an increase of over $200 per year.  The higher cost of power would eat up more and more of the City budget, forcing service reductions and costing San Francisco vitally needed jobs. Our local economy would take a multi-million dollar hit.

Actually, not true: The only people who will pay for Clean Power SF are the ones who want it. The idea is that a significant number of San Franciscans will be willing to pay a little more -- maybe $10 a month -- to help save the planet. The ones who want to stick with PG&E wil have every opportunity to do so. The city budget isn't taking a hit -- municipal services already use the city's Hetch Hetchy hydropower. This doesn't cost the city money or jobs.

It will, of course, hurt PG&E.

I called Hunter Stern to talk about all of this, and we had a long conversation. He was polite and answered all of my questions. Sort of.

He insisted that IBEW isn't against community choice aggregation, that he's only worried about the city budget and the impacts on ratepayers. And Shell. So we started going around in circles, like this:

Me: So you don't oppose Clean Power SF?

Stern: We are not opposed to community choice aggregation. Just to this contract with Shell.

Me: I'm told Shell is the only contractor willing to fulfill this role.

Stern: That's what I'm told, too.

Me: So if you support CCA, what should the city do?

Stern: Find somebody else.

Me: The city has made it clear there IS nobody else.

Stern: We should put this on hold and wait around until there is.

Me: Why is IBEW unhappy with Shell?

Stern: This is contracting out.

Me: Is Shell Energy a nonunion company?

Stern: They don't generate power, they just buy and sell, so they don't really have any employees who could be in IBEW.

Me: So what if they city can use this revenue to build its own renewables, with union labor?

Stern: We aren't opposed to the city building its own renewables.

Me: But the idea here is to use the revenue stream from Clean Power SF to raise money for local renewables.

Stern: You don't need revenue to build local renewables. Just creativity.

Me: But the city has a huge budget problem now. There's no money to build local generation unless you have a revenue stream to bond against.

Stern: There are creative ways to do it.

Me: So you support CCA. You support building local renewables.Clean Power SF is a CCA program to build local renewables. Shell is the only company that answered the city's call for bids for this project. You don't have any labor issues with Shell. I don't understand where you're coming from.

Stern: I don't disagree with your checklist.

Me: So why are you against this project?

Stern: We don't think this is good for the city or for the ratepayers.

Me: But the ratepayers don't have to be a part of it if they don't want to.

Stern: I think the way the city is approaching that is a good strategy.

Round and round and round. It was making my head hurt. I wish I'd put it on tape so you could all listen.

I passed the press release along to Tyrone Jue at the SFPUC. He had a pretty clear response:

This attack is not surprising. IBEW is one of the largest unions at PG&E. They historically side with PG&E on all their issues. The fact is CleanPowerSF will not cost IBEW workers jobs. Ironically, the local renewable build out phase will be creating even more green union jobs. This happens while we weaning ourselves off dirty fossil fuel sources.San Franciscans want the choice to embrace a clean energy future. While PG&E shareholders stand to lose with CleanPowerSF, the consumer and environment stand to win.

He added:

Our ‘little creativity’ involves reinvesting revenue into aggressive energy efficiency and local renewable generation projects.  We’re simply not motivated to maximize profit at the expense of our customers or the environment.   Our common sense goal is to reinvest revenue into real projects that will reduce San Francisco’s carbon footprint, create local jobs, and build a sustainable energy future that is better for the environment and our customers.

Ugh. This is going to be a battle royal. I hope there are six votes on the board for Clean Power SF, which is imperfect but important. And then Mayor Lee will have to decide whether to side with his highly respected SFPUC general manager, Ed Harrington, who wants to make this happen, and PG&E, which doesn't.

Oh, by the way: PG&E pays Willie Brown about $250,000 a year as a "legal retainer." And I hear the mayor takes his phone calls.

Comments

I love how these things are worded.

http://cleanpowersf.org/your-participation/

"Participation in CleanPowerSF is easy and completely voluntary. Do nothing and you will receive cleaner energy; it’s that simple. Energy customers who wish to remain with PG&E may opt-out of CleanPowerSF at any time after they have been offered the program."

Posted by matlock on Sep. 11, 2012 @ 10:56 pm

If I were a PG&E worker, i'd be terrified of any more government interference or control. I don't blame them at all.

Oh, and according to the insert in my latest power bill, 60% of PG&E power comes from clean or renewable forms. Sounds pretty green to me.

Posted by Guest on Sep. 12, 2012 @ 4:10 am

If you look at their power mix label you you will notice this interesting little reality in regard to PG&E's 'clean' energy claims.

Posted by Eric Brooks on Sep. 12, 2012 @ 8:01 am

I'm not glowing any strange colors. Nuclear is clean. But much of PG&E's power is green anyway (not that I am a mindless kneejerk eco-hippy, anyway).

Posted by Guest on Sep. 12, 2012 @ 8:33 am

Perhaps you'd like to bathe in the Fukushima cooling tanks?

Posted by marcos on Sep. 12, 2012 @ 8:58 am

If I don't know, that can't hurt me can it? I don't need no stinking badges!

Posted by lillipublicans on Sep. 12, 2012 @ 9:36 am

I bet you didn't even know that.

Posted by Guest on Sep. 12, 2012 @ 9:48 am

That probably makes it safer than any other form of energy production.

Posted by Guest on Sep. 12, 2012 @ 9:41 am

Yeah, the fissionable materials spontaneously present themselves at the reactor site and spontaneously extinguish themselves after depletion.

Posted by marcos on Sep. 12, 2012 @ 9:45 am

which is really freaking dangerous, keeps building up with no way for us to safely store it, remaining dangerous for 20 times longer than all of recorded human history. No worries, right?

Posted by lillipublicans on Sep. 12, 2012 @ 9:58 am

In fact, I have a decent-sized shareholding in AEP and CCJ as a sign of my faith.

Posted by Guest on Sep. 12, 2012 @ 10:13 am

IBGYBG, laissez les bon temps roulez!

Posted by marcos on Sep. 12, 2012 @ 10:20 am

This is a little-known fact in the U.S. but it's the main reason that the Germans are phasing out nuclear power...and even pro-nuke French are giving it a second think.

Posted by Guest on Sep. 23, 2012 @ 2:11 pm

If it's a documented fact, where are the documents?

Posted by Guest on Sep. 23, 2012 @ 2:56 pm

Dr. Gould conclusively proved that both men and women who live within 100 miles of a nuclear power plant have a significantly higher risk of developing breast or prostate cancer. That's "The Enemy Within: The High Cost of Living Near Nuclear Reactors". Pick up a copy and educate yourself.

Posted by Guest on Sep. 23, 2012 @ 3:35 pm

Read an old book, "We Almost Lost Detroit by John G. Fuller
Terrifying, not humor. The real deal and a City that size, in my lifetime
He also wrote "The Ghost Of Flight 401", it was made into a TV movie starring Ernest Borgnine. Excellent..

Posted by Guest on Nov. 15, 2012 @ 6:15 pm

Whoops.

Anyway, PGE "sounds pretty green to me."

There, job done.

But seriously, people should opt out if they want - it's their choice, right? What's wrong with that?

Posted by PGE shill on Sep. 12, 2012 @ 7:05 am

I doubt that would be the case if power was run by the same people who run muni.

Posted by Guest on Sep. 12, 2012 @ 8:34 am

Every time I get on a bus that doesn't explode, I wonder what it would be like if PG&E ran MUNI

Posted by AlanSF on Feb. 16, 2013 @ 1:15 pm

The "City family" in charge of power supply?

It might work in the beginning, but all profits will eventually be sucked into the "city family" pension fund in order to cover its huge underfunded liability.

Posted by Guest on Sep. 12, 2012 @ 10:14 am

never once suggested running it "at cost" to reduce power bills for consumers. Rather they saw it as a source of revenue for their pet projects.

So instead of the profit going to shareholders, i.e. us, it would instead go to faceless city bureaucrats.

That's part of why public power has always lost at the ballot. Every single time. Even in liberal SF. The people aren't stupid.

Posted by Guest on Sep. 12, 2012 @ 11:14 am

but what you just described scares the shit out of me. Putting people like Ed Reiskin and the fools who run MUNI in control of our power supply is lunacy.

Just go solar - the city should be enabling every home to go solar though tax incentives and by allowing them to tack the install cost onto property tax bills - if they did that 99% of people would go solar within 5 years.

Posted by Troll II on Sep. 12, 2012 @ 3:30 pm

I'd focus more on departments in San Francisco that are more closely related to utilities: SFPUC and SF Environment, both of which have shown themselves to be much more competent than Muni.

Honestly, PG&E and Muni give each other a good run for their money in terms of incompetency. Leaving PG&E behind sounds like a good idea to me--and many cities around the country have seen great success with city energy--including cities that have incompetent transit agencies... (Santa Clara, Ashland, OR, etc.)

The city's plan gives a path off Shell, and includes a revenue stream to do exactly what you're advocating: solar and wind on private residences and businesses throughout the city, funded by this new revenue.

Posted by Guest on Sep. 15, 2012 @ 3:41 pm

Jeez, folks, look at facts. Cities all over the US run power systems, do it well and generally do if for less cost. Muni is a nightmare that loses money; selling power is a money-maker. (Like the Airport, for example. Public operation. Makes money. Runs much better than Muni.)

Palo Alto runs its own electrical system -- and the lights don't go out. Same for Santa Clara. Same for Sacramento. In fact, during the last round of major PG&E blackouts, public-power cities still had lights, while SF didn't. (That's right -- under PG&E, you threw the switch and the lights DIDN'T go on. But they worked fine in the places where the dreaded public employees were running things.)

PG&E not only runs a nuke, it's on an active earthquake fault, and is not built to withstand the maximum possible quake. The Hosgri Fault goes, and Fukashima will look like a garden party.

Posted by tim on Sep. 13, 2012 @ 1:22 pm

Actually it's the SFPUC (not MUNI) that will provide the power to residents and businesses in an opt out process. They are the same agency that provides your drinking water, sewer system clean up and treatment as well as energy to all of the city and county run buildings. That's why when there was a black out and many brown outs the city still had power.

The energy business is dirty, but PG&E is dirtier. Their power and money are a monopoly and in essence the reason they don't want any more players in town. Marin Clean Energy is the only other green energy Community Choice Aggregate program in California and they gave them pure h-e -double L hockey sticks. It's really about greed and fear. If SF does it, imagine all of the other cities that would follow throughout PG&E's territories.

Posted by Guest Citified on Sep. 18, 2012 @ 4:38 pm

Doesn't Shell kill people in Nigeria?

Posted by Guest on Sep. 24, 2012 @ 7:03 pm

PG&E will say absolutely anything to kill public power. They have less credibility on public power than they do on pipeline safety.

As it happens, we can know the actual effect of public power by looking at the hundreds of cities across America that operate their own power system.

IBEW has a right to oppose the measure, but they ought to be ashamed of themselves for mouthing PG&E's outrageous lies instead of speaking for themselves. Just one more example of the labor movement doing everything it can to alienate their natural allies and suck up to their proven enemies.

Posted by AlanSF on Feb. 16, 2013 @ 1:21 pm

Evidently that means nothing to you.

Posted by Guest on Feb. 16, 2013 @ 3:44 pm

Hi, thanks for sharing.

Posted by dog trainer on Apr. 11, 2013 @ 5:24 am

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