San Francisco Moves One Step Closer to a Greener Future

CleanPowerSF could soon give San Francisco residents the opportunity to pay extra for renewable energy.

The news comes as the San Francisco Public Utilities Commission approved a term sheet with Shell Energy North America (NYSE: RDS-A). According to the SF Examiner, Shell will be responsible for running CleanPowerSF, a proposed public power program. Next week, Supervisor David Campos will introduce the program to the Board of Supervisors.

If approved, San Francisco residents would be automatically enrolled in a program that would provide them with electricity that is derived entirely from renewable energy sources. According to the SF Examiner, the average residential customer would see a monthly bill increase of $7 to $15. Those who wish to avoid the increase would have to opt out of the go program. Consumers who choose to do so would continue to receive their energy from PG&E Corp. (NYSE: PCG), which generates roughly 16% of its energy from renewable sources.

“Based on market research, we think there's a significant number of folks in The City that really want to put their money where their mouth is and are willing to pay a little bit more for more renewable energy,” Michael Campbell, director of CleanPowerSF, told the SF Examiner.

There is one catch, however: the program costs $19.5 million, $4 million of which will sit in a reserve account to, as the SF Examiner puts it, “mitigate potential program risks.” Fifteen million will be used as a payout to Shell if the program is terminated before the four-and-a-half-year contract is slated to end. No word on where the remaining $500,000 will go, or how the extra money might be used if the program isn't terminated.

If approved, San Francisco residents could be greener as soon as July 2012.

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