AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT Financial Services AGENDA NO. 17
MEETING DATE February 22, 2022
APPROVAL:
COMMISSION
SECRETARY Donna Hood
Extend Shutoff, Liens, and Fines Moratorium for COVID-19 Relief: Regular Calendar Project Manager: Isobel Hayne
Summary of
Proposed
Commission
Action:
Authorize the General Manager to take the following actions for COVID-19 relief (1) extend by three months, through June 30, 2022: (a) the temporary suspension of the discontinuation or shut off of water service for non-residential retail customers for non-payment of water and/or sewer bills, (b) the temporary suspension of discontinuation or shut off of power service for non-residential SFPUC Hetch Hetchy Power Customers in San Francisco for non-payment of power bills, and (c) temporary suspension of the return of delinquent CleanPowerSF customers to PG&E generation service for failure to pay CleanPowerSF charges; (2) extend by four months through July 31, 2022: (a) the temporary suspension of discontinuation or shut off of water service for City residential retail customers not enrolled in Customer Assistance Program (CAP) discounts for non-payment of water and/or sewer bills, and (b) the temporary suspension of discontinuation or shut off of power service for residential SFPUC Hetch Hetchy Power Customers in San Francisco not enrolled in CAP discounts for non-payment of power bills; (3) extend by five months, through August 31, 2022, (a) the temporary suspension of discontinuation or shut off of water service for City residential retail customers enrolled in CAP discounts for non- payment of water and/or sewer bills, and (b) the temporary suspension of discontinuation or shut off of power service for residential SFPUC Hetch Hetchy Power Customers in San Francisco enrolled in CAP discounts for non-payment of power bills; and (4) extend by 15 months through June 30, 2023, (a) the temporary suspensions of the imposition of late payment penalties or fees for delinquent water and/or sewer bills, and (b) the temporary suspension of the imposition of late payment penalties or fees for delinquent Hetch Hetchy Power Customer accounts; all of which are currently scheduled to end March 31, 2022.
Background: Background
The health and economic toll of the COVID-19 pandemic over the last two years has been severe. Unfortunately, its presence continues to be felt, including new variants causing business and health uncertainty, Approve Extension for Shutoff, Liens, and Fines Moratoria Commission Meeting Date: February 22, 2022
2 continued health concerns, and lingering economic impacts - particularly on low-income and otherwise vulnerable households. To that end, the San Francisco Safer Return Together Health Order (which replaced previous health orders including the Stay Safe at Home Public Health Order, originally put in place in March 2020) and the City’s emergency declaration arising from the pandemic continue to be in effect, establishing health and data-based limits to full economic “reopening.” Alt
hough many households, particularly those with lower incomes, may still be recovering from the economic impacts of the pandemic and shelter-in-place orders, the heath and economic status of San Francisco has in many ways improved due to vaccinations and better public health practices. Protection provided by high vaccination rates in the City has enabled some economic recovery: 86% of all San Francisco residents greater than five years of age have received a full course of a COVID vaccine. As of December 2021, San Francisco’s unemployment rate was approximately 3% according to the California Employment Development Department: down from a 13% peak in April 2020 but still above the pre-pandemic unemployment rate of 2.6% in February 2020, and higher than any pre-pandemic month since August 2017.
In response to the COVID emergency, the Commission put in place several emergency programs designed to support customers impacted by the public health and resulting economic crisis who were struggling to afford normal monthly expenditures. These included: (1) the Temporary Emergency Customer Assistance Program for COVID-19 Relief for single-family residential customers providing a discount of 15% on water, 35% on sewer, and 30% on Hetch Hetchy Power bills (see Resolution Nos. 20-0099, 20-0185, 20-0238, and 21-0063); (2) the Small Business and Nonprofit Customer Assistance Program for COVID-19 Relief providing a 20% discount on water and sewer bills (see Resolution Nos. 20-0150, 20-0238, and 21-0063); and (3) a moratorium temporarily suspending the following rules related to shutoffs, liens, and fines: (a) the discontinuation or shut off of water service for City non-residential retail customers for non-payment of water and/or sewer bills, (b) the imposition of late payment penalties or fees for delinquent water and/or sewer bills, (c) the discontinuation or shut off of power service for SFPUC Hetch Hetchy Power Customers in San Francisco for non-payment of power bills, (d) the imposition of late payment penalties or fees for delinquent Hetch Hetchy Power Customer accounts, and (e) the return of delinquent CleanPowerSF Customers to PG&E generation service for failure to pay CleanPowerSF charges (see Resolution Nos. 20-0162, 20-0238, and 21-0063). The programs have all been periodically extended through the pandemic period as the need to support vulnerable customers through COVID-related economic hardship has continued.
Approve Extension for Shutoff, Liens, and Fines Moratoria Commission Meeting Date: February 22, 2022
3 Federal funds are being distributed to water and wastewater systems and energy utilities via California state agencies to address the increased arrearages accrued during the pandemic. The California Water and Wastewater Arrearage Payment Program and the California Arrearage Payment Program provide water, wastewater, and energy debt relief to customers for balances accrued during the period of March 4, 2020 to June 15, 2021. The SFPUC is in the process of securing these federal funds, and expects to have received and dispersed funds from both programs by end of Fiscal Year 2021-22.
Cle
anPowerSF’s unique operating situation means that its collections process has been and will continue to be slightly different than the other business lines. The CPUC is the regulatory authority for billing and disconnections for PG&E and CleanPowerSF customers. Under state law, SFPUC cannot disconnect CleanPowerSF customers to address a customer’s non-payment. Instead, the only recourse is to return the customer to PG&E for their generation supply. To prevent a potentially significant number of customer returns due to non-payment during the COVID-19 emergency, the SFPUC adopted a policy suspending the return of CleanPowerSF customers to PG&E for non-payment of their generation charges (originally Resolution No. 20-0162, later extended with other emergency measures via Resolutions 20-0238 and 21-0063).
Sinc
e the last action taken by this Commission, the California Public Utilities Commission (CPUC) has adopted its own policies and programs related to disconnections and customer supports for power customers. In its decision adopted on June 24, 2021, the CPUC extended the disconnection moratorium for PG&E and CleanPowerSF customers through September 30, 2021 and authorized new COVID-19 Relief Payment Plan programs. All residential and small commercial customers with more than 60 days of arrears were auto-enrolled into the new Payment Plans in September 2021. Customers that remain in the program will be protected from service disconnection for previous past due amounts owed.
1 Exte
nsion Proposal
As San Francisco residents and small businesses continue to recover from two years of economic turmoil, this proposal would extend the moratorium on the following actions for three months beyond its currently scheduled expiration on March 31, 2022, through June 30, 2022:
1 For more information on the COVID-19 Relief Payment Plans see the CleanPowerSF Quarterly Report that was included as a communication item on the Commission’s November 9, 2021 meeting agenda, available here:
https://sfpuc.sharefile.com/share/view/s131203677cb24b238dd8e14213ad96c9 Approve Extension for Shutoff, Liens, and Fines Moratoria Commission Meeting Date: February 22, 2022
4 • The discontinuation or shut off of water service for City non- residential retail customers for non-payment of water and/or sewer bills;
• The discontinuation or shut off of power service for non- residential SFPUC Hetch Hetchy Power Customers in San
Francisco for non-payment of power bills; and
• The return of delinquent CleanPowerSF Customers to PG&E generation service for failure to pay CleanPowerSF charges.
This
proposal would extend the moratorium on the following actions for four months beyond its currently scheduled expiration on March 31, 2022, through July 31, 2022:
• The discontinuation or shut off of water service for City residential retail customers not enrolled in CAP discounts for non-payment of water and/or sewer bills; and
• The discontinuation or shut off of power service for residential SFPUC Hetch Hetchy Power Customers in San Francisco not enrolled in CAP discounts for non-payment of power bills.
This
proposal would extend the moratorium on the following actions for five months beyond its currently scheduled expiration on March 31, 2022, through August 31, 2022:
• The discontinuation or shut off of water service for City residential retail customers enrolled in CAP discounts for non- payment of water and/or sewer bills; and
• The discontinuation or shut off of power service for residential SFPUC Hetch Hetchy Power Customers in San Francisco
enrolled in CAP discounts for non-payment of power bills.
This
proposal would also extend the moratorium on the following actions related to late fees for an additional 15 months beyond their currently scheduled expiration on March 31, 2022, through June 30, 2023.
• The imposition of late payment penalties or fees for delinquent water and/or sewer bills; and
• The imposition of late payment penalties or fees for delinquent Hetch Hetchy Power Customer accounts.
The extension of the moratorium on these actions will allow customers more time to recover from the financial impacts of COVID-19 by giving them several additional months to catch up on their bills. Importantly, it also provides the SFPUC staff enough time to apply federal debt relief funds to eligible customer accounts. Extending the moratorium on shutoffs, liens and fines allows customers to receive any funding they might be eligible for before they are subject to loss of service for Approve Extension for Shutoff, Liens, and Fines Moratoria Commission Meeting Date: February 22, 2022
5 accruing debt that might be eligible for forgiveness. This extension aligns with recommendations from the California State Water Board to not resume shutoffs until after all relief funds have been dispersed.
Postponing late payment charges through June 2023 will avoid putting additional financial strain on customers already behind on their bills when the shutoff moratorium ends, and give time to catch up on bills before being further penalized.
Most commercial and non-residential customers are subject to property tax lien for unpaid bills rather than shutoff, so restarting shutoffs for those accounts first will begin the restart of collections with actions that have minimal impact on access to utilities for residents. Restarting residential customers not enrolled in customer assistance program (CAP) discounts one month before those who are enrolled in CAP provides more time for low-income CAP customers to catch up with bills, and provides non-enrolled discount-eligible customers time and incentive to enroll and receive assistance for future bills.
Public Hearing Notice
Pursuant to Charter Section 4.104, a Notice of Public Hearing was posted on the SFPUC website on February 2, 2022 and published in the San Francisco Examiner on February 6, 9, 10, 11, and 13, 2022.
Fiscal Impact: The shutoff, liens, and fines moratorium results in some foregone revenue from suspending the charging of late fees, and some delinquent revenue that will be deferred until collections processes restart at the end of the moratorium. A portion of the delinquent revenue will likely be uncollectible, but the exact amount is unknown at this time.
Results of
Inaction:
A delay or denial in approving this agenda item would mean that the SFPUC would resume implementation of its rules regarding shutoffs, liens, and fines on April 1, 2022.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.:
WHEREAS, On February 25, 2020, the Mayor issued a Proclamation (the Proclamation) declaring a local emergency to exist in connection with the imminent spread within the City of a novel (new) coronavirus (COVID-19); and
WHEREAS, On March 3, 2020, the Board of Supervisors concurred in the Proclamation and in the actions taken by the Mayor to meet the emergency; and WHEREAS, On March 4, 2020, Governor Gavin Newsom proclaimed a state of emergency to exist within the State due to the threat posed by COVID-19; and WHEREAS, On March 13, 2020, the Mayor issued a second supplement to the Proclamation, suspending shutoffs of water and power service by the San Francisco Public Utilities Commission (SFPUC) for delinquent water, power, and/or sewer bills, and prohibiting the imposition of late penalties and fees for non-payment of utility bills; and WHEREAS, On March 16, 2020, the City’s Health Officer issued a stay safe at home order, Health Officer Order No. C19-07 (the Stay Safe At Home Order), requiring most people to remain in their homes subject to certain exceptions including obtaining essential goods such as food and necessary supplies, and requiring the closure of nonessential businesses; the Health Officer has extended the Stay Safe At Home Order until further notice; and WHEREAS, On April 2, 2020, Governor Gavin Newsom signed Executive Order N-42- 20 suspending utilities’ authority to discontinue water and wastewater services; and WHEREAS, On July 28, 2020, by Resolution No. 20-0162, this Commission authorized the General Manager to temporarily suspend through January 15, 2021 the rules governing (1) the discontinuation or shut off of water service for City retail customers for non-payment of water and/or sewer bills, (2) imposition of late payment penalties or fees for delinquent water and/or sewer bills, (3) discontinuation or shut off of power service for SFPUC Hetch Hetchy Power Customers in San Francisco for non-payment of power bills, (4) imposition of late payment penalties or fees for delinquent Hetch Hetchy Power Customer accounts, and (5) the return of delinquent CleanPowerSF Customers to PG&E generation service for failure to pay CleanPowerSF charges; and
WHEREAS, On December 8, 2020, by Resolution No. 20-0238, this Commission authorized an extension of the Shutoffs, Liens, and Fines Moratorium through June 30, 2021; and
WHEREAS, On April 27, 2021, by Resolution No. 21-0063, this Commission authorized an extension of the Shutoffs, Liens, and Fines Moratorium through March 31, 2022; and WHEREAS, COVID-19 has caused and is expected to continue to cause serious negative impacts to the local economy and financial impacts to residents, including the substantial loss of income due to loss of compensable work hours or wages, layoffs, and business closures; and WHEREAS, The San Francisco County Health Officer has updated the Safer Return Together Health Order (formerly the Stay Safe at Home Order), most recently on January 26, 2022, and some non-essential businesses have been allowed to reopen with limitations and requirements in place, while others must remain closed; and WHEREAS, Loss of income as a result of the global COVID-19 pandemic continues to inhibit San Francisco residents and businesses from fulfilling their financial obligations including public utility payments such as water, sewer, and Hetch Hetchy power charges; and WHEREAS, Ensuring that all people in San Francisco continue to have access to running water during this public health crisis to enable people to regularly wash their hands and maintain access to clean drinking water will help to prevent the spread of COVID-19 and prevent or alleviate illness or death due to the virus; and
WHEREAS, Ensuring that all customers in San Francisco that receive power services from the SFPUC continue to have access to electricity so they are able to receive important COVID-19 information, keep critical medical equipment functioning, and utilize power as needed will help to prevent the spread of COVID-19 and prevent or alleviate illness or death due to the virus; and
WHEREAS, Section D, Rules 4 and 5 of the Rules and Regulations Governing Water Service To Customers, established by Resolution No. 19-786, passed December 15, 1959, and last amended December 10, 2019, detail the rules for the discontinuation or shut off of water service for residents and businesses in the City for non-payment of water and sewer bills; and WHEREAS, Schedule W-44 of the Water Rate Schedules details the rules governing the imposition of Late Payment Penalties for delinquent water and/or sewer bills; and WHEREAS, Rule X of the Rules and Regulations Governing Electric Service, Effective May 9, 2017, details the Discontinuance and Restoration of Hetch Hetchy Power Service and Rule VIII of the Rules and Regulations Governing Electric Service, Effective May 9, 2017, details Penalties of Late Payment for Hetchy Power Service; and WHEREAS, The CleanPowerSF Delinquent Accounts, Bad Debt and Collections Policy, authorized by the General Manager on January 17, 2017, details the process for Delinquent Accounts, and dictates that the SFPUC return delinquent CleanPowerSF Customers to PG&E for failure to pay CleanPowerSF charges; and
WHEREAS, Pursuant to Charter Section 4.104, a notice of public hearing was posted on the SFPUC website, as required, on February 2, 2022, and published in the San Francisco Examiner; now, therefore, be itRESOLVED, That this Commission hereby extends through June 30, 2022 the temporary suspension of the provisions in the CleanPowerSF Delinquent Accounts, Bad Debt and Collections Policy governing the return of delinquent CleanPowerSF Customers to PG&E generation service for failure to pay CleanPowerSF charges; now, therefore, be it RESOLVED, That this Commission hereby extends through June 30, 2022 the temporary suspension of the following for non-residential customers: (a) the provisions in Section D, Rules 4 and 5 of the Rules and Regulations Governing Water Service To Customers governing the discontinuation or shut off of water service for residents and businesses in the City for non- payment of water and sewer bills, and (b) Rule X of the Rules and Regulations Governing Electric Service, Effective May 9, 2017, regarding the Discontinuance and Restoration of Hetch Hetchy Power Service for SFPUC Hetch Hetchy Power Customers in San Francisco for non- payment of power bills; and be it
FURTHER RESOLVED, That this Commission hereby extends through July 31, 2022 the temporary suspension of the following for residential customers not enrolled in Customer Assistance Program (CAP) discounts: (a) the provisions in Section D, Rules 4 and 5 of the Rules and Regulations Governing Water Service To Customers governing the discontinuation or shut off of water service for residents and businesses in the City for non-payment of water and sewer bills, and (b) Rule X of the Rules and Regulations Governing Electric Service, Effective May 9, 2017, regarding the Discontinuance and Restoration of Hetch Hetchy Power Service for SFPUC Hetch Hetchy Power Customers in San Francisco for non-payment of power bills; and be it FURTHER RESOLVED, That this Commission hereby extends through August 31, 2022 the temporary suspension of the following for residential customers enrolled in Customer Assistance Program (CAP) discounts: (a) the provisions in Section D, Rules 4 and 5 of the Rules and Regulations Governing Water Service To Customers governing the discontinuation or shut off of water service for residents and businesses in the City for non-payment of water and sewer bills, and (b) Rule X of the Rules and Regulations Governing Electric Service, Effective May 9, 2017, regarding the Discontinuance and Restoration of Hetch Hetchy Power Service for SFPUC Hetch Hetchy Power Customers in San Francisco for non-payment of power bills; and be it FURTHER RESOLVED, That this Commission will reintroduce the aforementioned previously suspended rules for non-residential water and Hetchy Hetchy Power customers on July 1, 2022, residential water and Hetchy Hetchy Power customers not enrolled in SFPUC Customer Assistance Program (CAP) discounts on August 1, 2022, and residential customers enrolled in SFPUC CAP discounts on September 1, 2022; and be it
FURTHER RESOLVED, That this Commission hereby extends through June 30, 2023 the temporary suspension of the following: (a) the imposition of Late Payment Penalties for delinquent water and/or sewer bills set forth in Schedule W-44 of the Water Rate Schedules, and (b) the imposition of Rule VIII of the Rules and Regulations Governing Electric Service, Effective May 9, 2017, governing Penalties of Late Payment for Hetchy Power Service for delinquent Hetch Hetchy Power Customer accounts.
I hereby certify that the foregoing was adopted by the Public Utilities Commission at its meeting of February 22, 2022.
_______________________________________
Secretary, Public Utilities Commission
Isobel Hayne, Rates Analyst
Moratorium Extension and Collections
Process Restart
Proposal
Overview
• Extend Moratorium on Shutoffs & Liens from
March 31st, 2022 → July 1st, 2022
• Fees to restart July 1st, 2023
• Key Differences:
• Staggering restart to make it less painful for customers • Federal funding – want to give customers time
between relief and shutoff
2 Timeline
Proposed Moratorium Expiration
Timeline
3 July 1
CPSF &
Commercial
August 1
Residential, non-CAP
September 1
Residential, CAP
March –
April
Federal funding
expected
March 31
Current
moratorium
expiration
July 1, 2023
Late payment
charges
3 mos. 2 mos. 10 mos.