SFPUC Power Business Plan POWER ENTERPRISE BUSINESS PLAN 2016 | Page 12
Distribution Investment
Opportunities
Financial Results (Ten Years)
The service growth strategy will grow the core services
to better match sales with supplies, bringing more
Hetchy supplies to San Francisco and increasing the
Target Area: Redevelopment
areas and high customer
concentrations
strongest service offerings while decreasing the weakest
service offerings. This growth strategy will both increase
and stabilize revenues significantly, bringing even
more in qualitative long-term benefits such as greater
customer stability and affordability, growing the reach
of service within San Francisco, and investing locally in
Power’s distribution network. This value translates into
increased revenues, reduced unfunded cost exposures,
and long-term financial stability (see Table 2).
Existing Customer Interconnection
Points (small - medium - large)
Existing CAISO Interconnections
(PG&E owned)
CURRENT
$3.5
$3.5
Other Unfunded Costs
$3.0
Shortfall
Sixth and finally, we must focus on achieving operational
excellence so we can act with commercial speed and
PROJECTED
$1 Billion
$2.5
Potential Distribution
Access Costs
$3.0
Debt Financing
$2.5
CCA
Market Sales
MID/TID
efficiency to execute all of these strategies successfully.
We have several agency and City-wide constraints that
burden our abilities to implement our strategies. While
$2.0
City Programs
Debt Financing
$2.0
General Fund
$1.5
$1.5
Additional
Full Pay
Full Service Sales
Additionally, Power’s role as the City’s electric service
provider is not well known or understood. The Power
Enterprise, and the SFPUC more broadly, is working to
Transmission
General Fund
$0.5
City Programs
Distribution
Transmission
$1.0
$1.0
improve or, in some cases, overhaul operating practices
and procedures to ensure we can reduce or eliminate such
Market Sales
MID/TID
Distribution Access
Commercial Speed
Distribution
most operating platforms are scalable, our customerfacing programs are tailored to our current customer base.
Available
for Other Costs
Full Pay
Full Service
Supply
$0.5
Full Pay
Full Service
Supply
threats as these to commercial speed and responsiveness.
$0.0
$0.0
As an integrated plan, these six strategies will result in
Figure 7: This map shows distribution
investment opportunities, emphasizing
the redevelopment areas and high
customer concentrations.
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SFPUC Power Business Plan 2016
tangible, measurable improvements to Power’s financial
strength and success in achieving business goals (see Fig 8).
Revenues
Costs
Revenues
Costs
Figure 8: Illustration of the financial benefits of implementing these six
recommended strategies.
SFPUC Power Business Plan 2016
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