PG&E imposed unreasonable restrictions on connections of City facilities to PG&E’s distribution system, refusing to allow the City to interconnect its customers at secondary voltage unless the total electricity demand was less than 75 kW.

The settlement will allow the City to connect up to thirty megawatts (MWs) of metered secondary voltage load over the next five years, so long as each load fits into one of three categories: existing secondary service customers that expand or change electric service, City departments or related public entities, or private entities on City property (with a limit of five megawatts of the thirty MW total for this category).

The settlement will benefit the San Francisco Public Utilities Commission and City departments by allowing them to interconnect more customer loads at secondary voltage levels, which previously had been restricted.

FERC granted San Francisco’s complaint and ordered the matter be set for hearing and settlement procedures after the city's appeal against FERC’s earlier denial was successful. This followed PG&E's refusal to interconnect City loads over 75 kW at secondary voltages, while typically interconnecting its own retail loads up to 3 MWs at those voltages.

The Public Utilities Commission has approved the settlement. The Board of Supervisors has also approved the settlement and authorized the General Manager of the Public Utilities Commission to execute necessary documents and any further amendments or modifications. Finally, the settlement requires FERC's approval.

Amendments or modifications to the settlement documents must be determined in consultation with the City Attorney to be in the best interest of the City; they must not materially increase the City's obligations or liabilities or materially diminish its benefits, and must be in compliance with all applicable laws, including the City Charter.