Mayor Faulconer has released the Invitation to Bid (ITB) for the expiring Gas and Electric Franchise Agreements. The terms outlined in the ITB are a bad deal for the City of San Diego and its residents.
Any bids submitted should not go forward or be considered by the City Council because…
- With this ITB, The Mayor’s Office chose to ignore the consultant’s advice by removing the Right to Purchase clause, thus eliminating the City’s main avenue for holding the franchisee accountable. Given SDG&E’s continuing lack of accountability and fighting the city on Pure Water and other projects, this is a shocking choice that makes the ITB a complete non-starter.
- The franchise agreements represent some of the City’s most valuable public assets. The ITB’s proposed $80 million Minimum Bid is set at less than 1% of the reported value of the $37 billion agreements. Using the City’s own best practices for real estate and business transactions outlined in the consultant’s report, the Minimum Bid must be raised to reflect fair market value compensation for the use of our streets for corporate profit.
- The City has failed to center equity in the ITB, which doesn’t include provisions for a Climate Equity Fund or any plan to invest in our most vulnerable communities. A portion of the funds from the Minimum Bid should be directed to this fund and for implementation of the Climate Action Plan.
- It is the Council’s responsibility to ensure a thorough, robust, transparent, participatory process so the City can secure the best deal possible. Given the value of this asset, it is important that this process not be rushed and that all options be explored.
- The terms of the franchise agreements should be crafted and decided by the incoming Mayor and City Council. In light of the economic downturn and climate crisis, the City of San Diego must be focused on getting the best deal for San Diegans. By rushing this process, the City is not allowing enough time to evaluate this valuable asset.
San Diegans pay high utility rates and much of our energy still comes from fossil fuels. We can do better.
The City’s electricity and gas franchise agreements are expiring. For the first time in 50-years we can get a better deal with our utilities to create a more sustainable clean energy future.
Coalition for Better Franchise Agreements
Learn more about the franchise agreements
- Coalition Flyer
- Explainer: San Diego’s Franchise Agreements / PDF
- Presentation to community groups
- Spread the Word — Reach out to your networks (toolkit)
Materials Shared by City for Environment Committee Meeting July 16 2020
- San Diego City Staff report
- Consultant report (JVJ Pacific Consulting)
- NewGen report on value of infrastructure and costs associated with different scenarios
- Consultant’s proposed terms
- Presentation at Enviro Comm by staff & consultant
News
- Commentary: San Diego is losing money on its franchise agreement with SDG&E. Here’s how to fix it. (Union Tribune, July 11 by Craig Rose)
- Two groups rap Faulconer’s recommendations for a new franchise utility agreement (Union Tribune, July 10)
- Faulconer’s 4-point plan for new agreement covering San Diego’s electric and gas services (Union Tribune, July 9)
- Opinion: Franchise Fee Deal Is a Chance for the City to Make Much-Needed Changes (Voice of San Diego, June 23 by Pia Piscitelli)
Coalition Partners:
