San Francisco eyes electricity purchase plan

The measure, introduced by Board of Supervisors member Tom Ammiano, would allow San Francisco to set up a community power buyers' program to combine the electricity loads of its 780,000 residents and businesses.

The goal is to give the city more "energy independence" and stable power prices, while expanding the supply of cleaner, renewable energy through new solar plants, fuel cells, wind turbines and energy efficiency steps, Ammiano told reporters.

California, Massachusetts, Ohio, New York and Rhode Island have passed laws to let cities establish bulk purchasing, known as community aggregation.

Ohio has a program spread through eight counties with 500,000 electricity customers, Ammiano said.

Pacific Gas & Electric Co., a unit of PG&E Corp., supplies most of San Francisco's electricity. The proposed ordinance would bar PG&E as a power supplier in the community buying program, but PG&E customers could elect not to join the program. The city would pay the utility to deliver electricity over its lines.

A spokesman for PG&E said the utility would be "happy to work with the city on community aggregation." The company also "looks forward to partnering with San Francisco on renewable energy plans" and will work with the city to close an old power plant blamed by nearby residents for causing health problems, the spokesman said.

PG&E has successfully fought past moves by the city to take over its electric distribution system, but the spokesman noted the proposed ordinance does not call for a municipal utility.

Under the program, the city projects 360 megawatts of new renewable energy resources, including conservation efforts. San Francisco needs 850 megawatts of power during the day and 650 megawatts at night.

One megawatt is power for about 1,000 homes.

City officials said the plan, which also needs clearance from the California Public Utilities Commission, could be in place early in 2006.