Fiscal Year 2020-21 Report on CleanPowerSF Program Pursuant to Ordinance — CleanPowerSF Sfpuc Commission, April 26, 2022

CleanPowerSF is a program of the San Francisco Public Utilities Commission (SFPUC), an enterprise department of the City and County of San Francisco.

CleanPowerSF is committed to protecting customer privacy. Learn more at cleanpowersf.org/privacy.

OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.

525 Golden Gate Avenue, 7th Floor
San Francisco, CA 94102
T 415.554.0773
[email protected]
DATE: April
1, 2022
TO: Clerk of the Board of Supervisors
THROUGH: Dennis J. Herrera, General Manager
FROM: Barbara Hale, Assistant General Manager, Power
Michael Hyams, Deputy AGM, Power - CleanPowerSF
SUBJECT: Fiscal Year 2020-21 Report on the CleanPowerSF Program Pursuant to Ordinance 223-15
Pursuant t
o Ordinance 223- 15, the San Francisco Public Utilities Commission (SFPUC) hereby provides the following report on the CleanPowerSF program.

Ordinance 223-15 requires the SFPUC to submit annual reports to the Board of Supervisors, detailing “annual program costs, the rates charged by the SFPUC to CleanPowerSF customers to recover the costs, and a comparison of those CleanPowerSF rates to PG&E rates.”
This report
addresses the information requested in Ordinance 223- 15 and provides an update on the status of program enrollment.

Program B
ackground and Update
CleanPowerSF is San Francisco’s Community Choice Aggregation (CCA) program. Authorized under State law, the CCA program allows cities and counties to partner with their investor- owned utility (PG&E in San Francisco) to deliver cleaner energy to residents and businesses.

In 2020, CleanPow
erSF’s power supply greenhouse gas emissions rate was
95% lower than San Francisco’s 1990 electricity supply emissions rate. This represents a 95% reduction in greenhouse gas emissions for CleanPowerSF electricity sales, the equivalent of removing 232,000 passenger vehicles from the road for a year.

CleanPowerS
F replaces the electricity generation component on a participating customer’s PG&E energy bill and supplies electricity with a higher renewable

energy content than PG&E. PG&E continues to maintain the power grid, respond to outages and collect payment from customers.

CleanPower
SF currently offers San Franciscans two options for their electricity supply:
- Green: The
Green product is CleanPowerSF’s default electricity
supply offering. In calendar year 2020 , CleanPowerSF’s Green product featured 54.5% California Renewable Portfolio St andard (RPS) eligible Renewable Energy 1 and prices that are competitive with PG&E’s default electricity offering ( which was 30.6% RPS - eligible Renewable in 2020).
- SuperGreen:

The SuperGreen product is CleanPowerSF’s elective
100% RPS eligible Renewable Energy option. Any CleanPowerSF customer can “opt -up” to SuperGreen service for a small per kilowatt-hour premium. The premium for residential customers is currently 1 cent per kilowatt -hour (kWh), amounting to approximately $3.00 per month of additional c harges for the average San Francisco residential customer’s electricity bill.

Fiscal
Year 2020 -21 marked CleanPowerSF’s fifth complete fiscal year of operation. CleanPowerSF serves the majority of eligible electric customers in San Francisco, with over 380,000 active residential and commercial accounts throughout the city. Enrollment statistics at end of FY 2020 -21 can be found in Table 1 below.

Table 1: Summary of Program Enrollment Statistics (June 29, 2021) Category Number of
Accounts
Total Enrolled 411,536
Enrolled - lnactive2 10,173
Opted-Out 16,969
Enrolled – Active 384,394
Green – 50%+ Renewable 376,499
SuperGreen - 100% Renewable 7,895
1 With large hydroelectric energy accounted for, the CleanPowerSF energy mix was more than 96% renewable energy in 2020 compared to 40.7% renewable for PG&E’s default offering. See PG&E and CleanPowerSF power content labels at https://www.energy.ca.gov/programs-and- topics/programs/power-source-disclosure/power-content-label/annual-power-content-1. 2 “Inactive” refers to a physical service location that was enrolled by CleanPowerSF but was unoccupied or did not have an active PG&E electric service account at time of reporting. 2 Annual Program Costs
As noted above, CleanPowerSF completed its fifth full fiscal year of operations on June 30th, 2021 (FY 2020-21). On January 27, 2022, the PUC published its audited Fiscal Year 2020- 21 financial reports, which include a summary of CleanPowerSF revenues and expenses. 3 A summary of CleanPowerSF revenues and expenses for FY 2019-20 and FY 2020-21 is provided in Table 2 below.

Table 2: Summary of CleanPowerSF Revenues and Expenses
Item FY 2019-20
($, In
Thousands)
FY 2020-21
($, In
Thousands)
Operating Revenues
Non-Operating Revenues
Total Expenses
245,460
1,772
(196,095)
207,698
978
(212,734)
Change in Net Position 51,137 (4,058)
Net Position at Beginning of Year 40,001 91,138
Net Position at End of Year 91,138 87,080
CleanPowerSF Rates and Comparison to PG&E Rates
Ordinance 223-15 also requires the PUC to report on CleanPowerSF’s rates and how those rates compare with PG&E’s generation rates. In FY 2020-21, CleanPowerSF changed its rates effective July 1, 2020 . Rate tables for both July 2020 and the July 2021 rate updates have been provided as attachments to this memo for your reference.

In addition,
pursuant to Senate Bill 790 (Leno) and California Publi c Utilities Commission Decision 12-12-036, each July CleanPowerSF and PG&E publish a joint rate comparison. A “Joint Rate Mailer” is sent each year to all enrolled CleanPowerSF customers and joint rate comparisons for each customer type served by CleanPowerSF are published both on CleanPowerSF’s and PG&E’s websites. The Joint Rate Mailers sent to CleanPowerSF customers in July of 2020 and 2021 are attached to this memo for your review and reference.

Table 3 below
shows the joint rate comparison published and mailed to CleanPowerSF residential customers on the standard E- 1 rates schedule in July 2020. The comparison shows that CleanPowerSF offered residential 3 The Hetch Hetchy Water and Power and CleanPowerSF Report for FY 20-21 may be found at:
https://sfpuc.org/sites/default/files/about-us/policies-reports /AuditedFinancialStatements-Hetchy- CleanPower_FY20-21.pdf
3 customers a competitively priced product with more renewable energy than PG&E’s default product.

Table 3: Residential (E-1) Joint Rate Comparison (as of May 1, 2020) E-1
Residential Flat Rate
PG&E Default
Product
(30.6%
Renewable)
CleanPowerSF
Green
(54.5%
Renewable)
CleanPowerSF
SuperGreen
(100%
Renewable)
Generation Rate
($/kWh)
$0.111752 $0.08235 $0.09235
PG&E Delivery Rate
($/kWh)
$0.15426 $0.15426 $0.15426

PG&E PCIA/FFS
($/kWh)
N/A $0.03399 $0.03399
Total Electricity Costs
($/kWh)
$0.27178 $0.27060 $0.28060
Average Monthly Bill
($)
.$74.30 $73.97 $76.01
This table compares electricity costs for a typical residential customer in the CleanPowerSF /PG& E service area with an average monthly usage of 273 kilowatt -hours (kWh). The Average Monthly Bill amounts are based on a representative 12- month billing history for all customers on E -1 rate schedules for PG&E's and CleanPowerSF's published rates effective May 15, 2020.

Table 3 shows that CleanPowerSF’s Green rates were significantly lower than PG&E’s generation rates ($0.08235 per kilowatt -hour CleanPowerSF as compared to $0.11752 per kilowatt-hour for PG&E). The lower CleanPowerSF rates help to absorb the Power Charge Indifference Adjustment (PCIA) fee that CleanPowerSF and other CCA customers are required to pay to PG&E for the “above market” costs of its electricity supply.

As il
lustrated by the rate comparison in Table 3, after accounting for the PCIA and other fees PG&E charges CCA customers, the net cost of the average residential customer in San Francisco taking CleanPowerSF Green service was less than the cost of PG&E’s default product.

Attachmen
ts
A. Hetch Hetchy Water and Power and CleanPowerSF Audited Financial Statements for FY 2020-2021 (Annual Program Costs) B. CleanPowerSF Rates Tables for Rates Effective April 15, 2020 and January 15, 2021
C. CleanPowerSF-PG&E Joint Rate Mailers (2020 and 2021) D. CleanPowerSF-PG&E Joint Rate Comparison (2021)4

Attachment A:

Hetch Hetchy Water and Power and CleanPowerSF
Audited Financial Statements for FY 2020-2021
(Annual Program Costs)

This page is intentionally blank

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Table of Contents
Page
Independent Auditors’ Report 1
Management’s Discussion and Analysis (Unaudited) 3
Financial Statements:

Statements of Net Position 34
Statements of Revenues, Expenses, and Changes in Net Position 35 Statements of Cash Flows 36
Notes to Financial Statements 38
Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 90

Independent Auditors’ Report
The Honorable Mayor and Board of Supervisors
City and County of San Francisco, California:

Report on the Financial Statements
We have audited the accompanying financial statements of the business-type activities of each fund of Hetch Hetchy Water and Power and CleanPowerSF (Hetch Hetchy), enterprise funds of the City and County of San Francisco, California (the City), as of and for the years ended June 30, 2021 and 2020, and the related notes to the financial statements, which collectively comprise Hetch Hetchy’s basic financial statements as listed in the tables of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit s. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities of each fund of Hetch Hetchy, as of June 30, 2021 and 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the years then ended in accordance with U.S. generally accepted accounting principles. 2 Emphasis of Matter
As discussed in Note 1, the financial statements of Hetch Hetchy are intended to present the financial position, the changes in financial position and, where applicable, cash flows of only that portion of the City that is attributable to the transactions of Hetch Hetchy. They do not purport to, and do not, present fairly the financial position of the City as of June 30, 2021 and 2020, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with U.S. generally accepted accounting principles. Our opinion is not modified with respect to this matter.

Other Matters
Required Supplementary Information
U.S. generally accepted accounting principles require that the management’s discussion and analysis on pages 3 – 33 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 27, 2022 on our consideration of Hetch Hetchy’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and othe r matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Hetch Hetchy’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Hetch Hetchy’s internal control over financial reporting and compliance.

San Francisco, California
January 27, 2022

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

3 (Continued)

This section presents management’s analysis of San Francisco Hetch Hetchy Water and Power and CleanPowerSF Enterprise’s (Hetch Hetchy or the Enterprise) financial condition and activities as of and for fiscal years ended June 30, 2021 and 2020. Management’s Discussion and Analysis (MDA) is intended to serve as an introduction to the Enterprise’s financial statements. This information should be read in conjunction with the audited financial statements that follow this section. All dollar amounts, unless otherwise noted, are expressed in thousands of dollars.

In May 2016, San Francisco Public Utilities Commission (SFPUC or the Commission) launched CleanPowerSF, a Community Choice Aggregation (CCA) program into operation, pooling the electricity demands of their residents and businesses for the purpose of buying electricity on behalf of those customers. CleanPowerSF provides San Francisco with new clean energy alternatives, with its objectives to reduce greenhouse gas emissions, and to provide the Ci ty and County of San Francisco’s (the City) energy consumers with renewable electricity supplies at competitive rates. The SFPUC intends CleanPowerSF to be financially independent, with ability to set rates and charges with adequate revenues, and to issue debt to support its operations and future projects. CleanPowerSF is discretely presented as a fund of the Enterprise starting fiscal year 2017.

The information in this MDA is presented under the following headings:
 Organization and Business
 Overview of the Financial Statements
 COVID-19
 Financial Analysis
 Capital Assets
 Debt Administration
 Rates and Charges
 Request for Information

Organization and Business

SFPUC is a department of the City that is responsible for the maintenance, operation, and development of three utility enterprises: Water, Wastewater, and Hetch Hetchy. The Enterprise was established as a result of the Raker Act of 1913, which granted water and power resource rights-of-way on the Tuolumne River in Yosemite National Park and the Stanislaus National Forest to the City. The Enterprise operates the Hetch Hetchy project, which provides both electricity generation and upcountry water service; and is engaged in the collection and conveyance of approximately 85% of the regional system’s water supply and in the generation and transmission of electricity.

In normal rain years, 85% of San Francisco’s drinking water starts out as snow falling on 459 square miles of watershed land in Yosemite National Park and the City may supplement water supply from an additional 193 square miles of watershed in Yosemite National Park and the Stanislaus National Forest during extremely dry years. As the snow melts, it collects in the SFPUC's storage reservoirs. As water flows by gravity through over 150 miles of pipelines and tunnels, it tu rns the turbines in three hydroelectric powerhouses, generating approximately 1.1 billion kilowatt hours of electricity per year. The electricity travels over 160 miles of transmission and distribution lines from the upcountry powerhouses to the San Francisco Bay Area.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

4 (Continued)

Water and Wastewater Enterprises). The remaining 19% of electricity generated is sold to CleanPowerSF and the wholesale electric market.

Hetch Hetchy

Hetch Hetchy provides reliable, high-quality water and electric energy to the City and other customers, protects watershed resources in cooperation with Federal agencies, operates and maintains facilities to a high standard of safety and reliability, and maximizes revenue opportunities within approved levels of risk.

Hetch Hetchy, a stand-alone enterprise is comprised of three funds: 1) Hetch Hetchy Water (Hetchy Water) upcountry operations and water system; 2) Hetch Hetchy Power (Hetchy Power), also referred to as the Power Enterprise, which is wholly contained within the Hetch Hetchy fund; and 3) CleanPowerSF, which is an enterprise fund to aggregate the buying power of customers within San Francisco to purchase renewable energy sources or clean power, is reported as a separate fund of Hetch Hetchy. A number of the facilities are joint assets and used for both water and power generation.

Hetchy Water

For efficiency and to streamline the coordination of upcountry water and power operations, Hetchy Water operates upcountry and joint-asset facilities, managing resources in an environmentally responsible manner to a high standard of safety and reliability while me eting regulatory requirements. It is responsible for operating the Hetch Hetchy Reservoir, the main source of water for the Hetch Hetchy system. Hetchy Water operates, maintains, and improves water and powe r facilities, smaller dams and reservoirs, water transmission systems, power generati on facilities, and power transmission assets, including transmission lines to the Newark substation. Hetchy Water delivers high-quality water from upcountry downhill to the Bay Area while optimizing the resulting generation of clean hydropower as water is transported through the system. It maintains land and properties consistent with public health and neighborhood concerns.

Hetchy Power

The core business of Hetchy Power, as a municipal department, is to provide adequate and reliable supplies of electric power to meet the electricity needs of City and County of San Francisco’s customers, and to offer, when available, power for the municipal loads and agricultural pumping demands consistent with prescribed contractual obligations and federal law.

Hetchy Power’s portfolio consists of hydroelectric generation, onsite solar at SFPUC and other City facilities, generation using bio-methane produced at SFPUC wastewater treatment facilities, and third-party purchases. Consistent with its commitment to the development of cleaner and greener power, and to address environmental concerns and community objectives, Hetchy Power continues to evaluate and expand its existing resource base to include addi tional renewables, distributed generation, demand management, and energy efficiency programs. As part of its mission and core functions, Hetchy Power provides reliable energy services at reasonable cost to customers, with attention to environmental effects and community concerns.

Hetch Hetchy Joint Water and Power

A portion of Hetch Hetchy’s operating budget, capital pr ogram, and assets, provides benefit to both Hetchy Power and Hetchy Water. This is commonly referred to as joint costs and joint assets. Both operating and capital costs that jointly benefit both funds are allocated 55% to Hetchy Power and 45% to Hetchy Water, as has historically been done by the SFPUC.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

5 (Continued)

CleanPowerSF

The core business of CleanPowerSF is to provide greener electricity generation to residential and commercial consumers in San Francisco. Through CleanPowerSF, SFPUC seeks to achieve several complementary goals, including affordable and competitive electricity generation rates, a diverse electricity resource portfolio that is comprised of renewable and other clean sources of supply, and high-quality customer service.

Overview of the Financial Statements

Hetch Hetchy’s financial statements include the following:

Statements of Net Position present information on Hetch Hetchy’s assets, deferred outflows, liabilities, and deferred inflows as of year-end, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of Hetch Hetchy is improving or worsening.

While the Statements of Net Position provide information about the natu re and amount of resources and obligations as of year-end, the Statements of Revenues, Expenses, and Changes in Net Position present the results of Hetch Hetchy’s operations over the course of the fiscal year and information as to how the net position changed during the year. These statements can be used as an indicator of the extent to which Hetch Hetchy has successfully recovered its costs throug h user fees and other charges. All changes in net position are reported during the period in which the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in these statements from some items that will result in cash flow s in future fiscal periods, such as delayed collection of operating revenues and the expenses of employee earned but unused vacation leave.

The Statements of Cash Flows present changes in cash and cash equi valents resulting from operational, capital financing, non-capital financing, and investing activities. These statements summarize the annual flow of cash receipts and cash payments, without consid eration of the timing of the event giving rise to the obligation or receipt and exclude non-cash accounting measures of depreciation or amortization of assets.

The Notes to Financial Statements provide information that is essential to a full understanding of the financial statements that is not presented on the face of the financial statements.

COVID-19

On February 25, 2020, the City’s Mayor issued a proclamation declaring a local emergency to exist in connection with the imminent spread within the City of the novel coronavirus (“COVID-19”). 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 and City employees to remain in their homes subject to certain exceptions including obtaining essential goods (such as food and necessary su pplies), and requiring the closure of nonessential businesses. In addition, Se ction 2 of the second supplement to the emergency proclamation authorizes the SFPUC to suspend (a) the discontinuation or shutoff of power service for residents and businesses in the City for non-payment of power bills, (b) the return of delinquent CleanPowerSF Customers to Pacific Gas & Electric Company (PG&E) generation service for failure to pay CleanPowerSF charges and (c) the imposition of late payment penalties or fees for delinquent power bills through July 11, 2020. The proclamation was extended on December 8, 2020 through June 30, 2021 and then again on April 27, 2021 through March 31, 2022 for Hetchy Power. For CleanPowerSF, the suspension was extended to September 30, 2021. This proclamation did not have a material effect on the operations of the Hetch Hetchy Enterprise.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

6 (Continued)

Financial Analysis

Financial Highlights for Fiscal Year 2021

Hetch Hetchy

 Total assets of Hetch Hetchy exceeded total liabilities by $767,191.

 Net position increased by $16,429 or 2.1% during the fiscal year.

 Capital assets, net of accumulated depreciation and amortization, increased by $63,326 or 10.4% to $669,537.

 Operating revenues, excluding interest and investment income, and other non-operating revenues, decreased by $30,113 or 7.1% to $391,171.

 Operating expenses, excluding interest expenses, other non-operating expenses, and amortization of premium, discount, and issuance costs, increased by $19,845 or 5.1% to $408,871.

Hetchy Water

 Total assets of Hetchy Water exceeded total liabilities by $216,214.

 Net position increased by $13,630 or 6.5% during the fiscal year.

 Capital assets, net of accumulated depreciation and amortization, increased by $16,699 or 10.4% to $177,481.

 Operating revenues, excluding interest and investment income, and other non-operating revenues, increased by $12,137 or 34.7% to $47,090.

 Operating expenses, excluding other non-operating expenses, increased by $5,644 or 12.6% to $50,517.

Hetchy Power

 Total assets of Hetchy Power exceeded total liabilities by $462,136.

 Net position increased by $6,857 or 1.5% during the fiscal year.

 Capital assets, net of accumulated depreciation and amortization, increased by $46,627 or 10.5% to $492,056.

 Operating revenues, excluding interest and investment income, and other non-operating revenues, decreased by $4,488 or 3.2% to $136,383.

 Operating expenses, excluding interest expenses, other non-operating expenses, and amortization of premium, discount, and issuance costs, decreased by $2,489 or 1.7% to $145,638.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

7 (Continued)

CleanPowerSF

 Total assets of CleanPowerSF exceeded total liabilities by $88,841.

 Net position decreased by $4,058 or 4.5% during the fiscal year.

 CleanPowerSF had no capital assets, net of accumulated depreciation and amortization as of June 30, 2021.

 Operating revenues, excluding interest and investment income, and other non-operating revenues, decreased by $37,762 or 15.4% to $207,698.

 Operating expenses, excluding interest expense increased by $16,690 or 8.5% to $212,716.

Financial Highlights for Fiscal Year 2020

Hetch Hetchy

 Total assets of Hetch Hetchy exceeded total liabilities by $758,800, excluding interfund payable and receivable of $1,800 related to working capital loan between Hetchy Power and CleanPowerSF.

 Net position increased by $80,891 or 11.8% during the fiscal year.

 Capital assets, net of accumulated depreciation and amortization, increased by $55,580 or 10.1% to $606,211.

 Operating revenues, excluding interest and investment income, and other non-operating revenues, increased by $75,898 or 22% to $421,284.

 Operating expenses, excluding interest expenses, other non-operating expenses, and amortization of premium, discount, and issuance costs, increased by $78,749 or 25.4% to $389,026.

Hetchy Water

 Total assets of Hetchy Water exceeded total liabilities by $206,283.

 Net position increased by $9,862 or 4.9% during the fiscal year.

 Capital assets, net of accumulated depreciation and amortization, increased by $11,679 or 7.8% to $160,782.

 Operating revenues, excluding interest and investment income, and other non-operating revenues, increased by $948 or 2.8% to $34,953.

 Operating expenses, excluding other non-operating expenses, decreased by $5,432 or 10.8% to $44,873.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

8 (Continued)

Hetchy Power

 Total assets of Hetchy Power exceeded total liabilities by $459,800.

 Net position increased by $19,892 or 4.5% during the fiscal year.

 Capital assets, net of accumulated depreciation and amortization, increased by $43,901 or 10.9% to $445,429.

 Operating revenues, excluding interest and investment income, and other non-operating revenues, decreased by $2,690 or 1.9% to $140,871.

 Operating expenses, excluding interest expenses, other non-operating expenses, and amortization of premium, discount, and issuance costs, increased by $25,439 or 20.7% to $148,127.

CleanPowerSF

 Total assets of CleanPowerSF exceeded total liabilities by $92,717.

 Net position increased by $51,137 or 127.8% during the fiscal year.

 CleanPowerSF had no capital assets, net of accumulated depreciation and amortization as of June 30, 2020.

 Operating revenues, excluding interest and investment income, and other non-operating revenues, increased by $77,640 or 46.3% to $245,460.

 Operating expenses, excluding interest expense increased by $58,742 or 42.8% to $196,026.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

9 (Continued)

Financial Position

The following tables summarize Hetch Hetchy’s changes in net position:

*Eliminated interfund payable and receivable of $1,800 and $3,731 working capital loan between Hetchy Power and CleanPowerSF fo r fiscal years 2020 and 2019, respectively.

2021-2020 2020-2019
2021 2020 2019 Change Change
Total assets:

Current and other assets $ 468,768 441,635 392,967 27,133 48,668 Capital assets, net of accumulated depreciation
and amortization 669,537 606,211 550,631 63,326 55,580 Total assets 1,138,305 1,047,846 943,598 90,459 104,248 Deferred outflows of resources:

Pensions 18,133 18,238 14,665 (105) 3,573 Other post-employment benefits 8,719 5,452 3,092 3,267 2,360 Total deferred outflows of resources 26,852 23,690 17,757 3,162 5,933 Liabilities:

Current liabilities:

Bonds 1,928 2,115 2,528 (187) (413) Certificates of participation 405 384 366 21 18 Commercial paper 114,671 63,535 50,724 51,136 12,811 Other liabilities 82,677 63,178 52,128 19,499 11,050 Subtotal current liabilities 199,681 129,212 105,746 70,469 23,466 Long-term liabilities:

Bonds 44,384 47,693 50,018 (3,309) (2,325) Certificates of participation 13,026 13,444 13,846 (418) (402) Other liabilities 114,023 98,697 92,755 15,326 5,942 Subtotal long-term liabilities 171,433 159,834 156,619 11,599 3,215 Total liabilities:

Bonds 46,312 49,808 52,546 (3,496) (2,738) Certificates of participation 13,431 13,828 14,212 (397) (384) Commercial paper 114,671 63,535 50,724 51,136 12,811 Other liabilities 196,700 161,875 144,883 34,825 16,992 Total liabilities 371,114 289,046 262,365 82,068 26,681 Deferred inflows of resources:

Related to pensions 3,288 10,843 8,811 (7,555) 2,032 Other post-employment benefits 6,546 3,867 3,290 2,679 577 Total deferred inflows of resources 9,834 14,710 12,101 (4,876) 2,609 Net position:

Net investment in capital assets 500,547 482,986 450,637 17,561 32,349 Restricted for debt service 99 142 1,145 (43) (1,003) Restricted for capital projects — 6,513 8,401 (6,513) (1,888) Unrestricted 283,563 278,139 226,706 5,424 51,433 Total net position $ 784,209 767,780 686,889 16,429 80,891 Table 1A - Consolidated Hetch Hetchy
Comparative Condensed Net Position
June 30, 2021, 2020, and 2019
** *

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

10 (Continued)

2021-2020 2020-2019
2021 2020 2019 Change Change
Total assets:

Current and other assets $ 98,151 92,711 94,432 5,440 (1,721) Capital assets, net of accumulated depreciation
and amortization 177,481 160,782 149,103 16,699 11,679 Total assets 275,632 253,493 243,535 22,139 9,958 Deferred outflows of resources:

Pensions 7,799 7,950 6,447 (151) 1,503 Other post-employment benefits 3,725 2,332 1,343 1,393 989 Total deferred outflows of resources 11,524 10,282 7,790 1,242 2,492 Liabilities:

Current liabilities 15,857 6,769 6,726 9,088 43 Long-term liabilities 43,561 40,441 38,123 3,120 2,318 Total liabilities 59,418 47,210 44,849 12,208 2,361 Deferred inflows of resources:

Related to pensions 988 4,335 3,874 (3,347) 461 Other post-employment benefits 2,085 1,195 1,429 890 (234) Total deferred inflows of resources 3,073 5,530 5,303 (2,457) 227 Net position:

Net investment in capital assets 177,481 160,782 149,103 16,699 11,679 Restricted for capital projects — 6,513 8,401 (6,513) (1,888) Unrestricted 47,184 43,740 43,669 3,444 71 Total net position $ 224,665 211,035 201,173 13,630 9,862 Table 1B - Hetchy Water
Comparative Condensed Net Position
June 30, 2021, 2020, and 2019

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

11 (Continued)

*Included $1,800 and $3,731 working capital loan to CleanPowerSF for fiscal years 2020 and 2019, respectively.

2021-2020 2020-2019
2021 2020 2019 Change Change
Total assets:

Current and other assets $ 249,275 228,845 * 239,222 * 20,430 (10,377) Capital assets, net of accumulated depreciation
and amortization 492,056 445,429 401,528 46,627 43,901 Total assets 741,331 674,274 640,750 67,057 33,524 Deferred outflows of resources:

Pensions 9,531 9,716 7,879 (185) 1,837
Other post-employment benefits 4,552 2,850 1,641 1,702 1,209 Total deferred outflows of resources 14,083 12,566 9,520 1,517 3,046 Liabilities:

Current liabilities:

Bonds 1,928 2,115 2,528 (187) (413)
Certificates of participation 405 384 366 21 18 Commercial paper 114,671 63,535 50,724 51,136 12,811 Other liabilities 49,431 33,218 28,346 16,213 4,872 Subtotal current liabilities 166,435 99,252 81,964 67,183 17,288 Long-term liabilities:

Bonds 44,384 47,693 50,018 (3,309) (2,325)
Certificates of participation 13,026 13,444 13,846 (418) (402) Other liabilities 55,350 54,085 52,247 1,265 1,838 Subtotal long-term liabilities 112,760 115,222 116,111 (2,462) (889) Total liabilities:

Bonds 46,312 49,808 52,546 (3,496) (2,738)
Certificates of participation 13,431 13,828 14,212 (397) (384) Commercial paper 114,671 63,535 50,724 51,136 12,811 Other liabilities 104,781 87,303 80,593 17,478 6,710 Total liabilities 279,195 214,474 198,075 64,721 16,399 Deferred inflows of resources:

Related to pensions 1,207 5,298 4,734 (4,091) 564 Other post-employment benefits 2,548 1,461 1,746 1,087 (285) Total deferred inflows of resources 3,755 6,759 6,480 (3,004) 279 Net position:

Net investment in capital assets 323,066 322,204 301,534 862 20,670 Restricted for debt service 99 142 1,145 (43) (1,003) Unrestricted 149,299 143,261 143,036 6,038 225 Total net position $ 472,464 465,607 445,715 6,857 19,892 Table 1C - Hetchy Power
Comparative Condensed Net Position
June 30, 2021, 2020, and 2019

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

12 (Continued)

*Included $1,800 and $3,731 working capital loan from Hetchy Power for fiscal years 2020 and 2019, respectively.

Net Position, Fiscal Year 2021

Hetch Hetchy

Hetch Hetchy’s net position of $784,209 increased by $16,429 or 2.1% from prior year resulting from an increase of $93,621 in total assets and deferred outflows of resources, offset by a net increase of $77,192 in total liabilities and deferred inflows of resources (see Table 1A). Current and other assets were $468,768, a $27,133 or 6.1% increase from prior year, driven by higher charges for services receivables from Hetchy Power. In April 2021, Hetchy Power implemented a new electric utility billing system causing billings from April to June to be delayed.

Capital assets, net of accumulated depreciation and amortization, increased by $63,326 or 10.4% to $669,537 primarily from construction and capital improvement activities, and additions of facilities, improvements, machinery, and equipment for the Bay Corridor Project and Holm Powerhouse Rehabilitation & Kirkwood Powerhouse Oil Containment Upgrades. Defe rred outflows of resources increased by $3,162 due to an increase of $3,267 in other post-employment benefits (OPEB) based on actuarial reports offset by a decrease of $105 in pensions.

Total liabilities increased by $82,068 or 28.4% to $371,114. The increases included $47,243 in outstanding debt and $34,825 in other liabilities. Deferred inflows of resources decreased by $4,876 due to a decrease of $7,555 in relation to pensions offset by an increase of $2,679 in OPEB based on actuarial reports.

Hetchy Water

Hetchy Water’s net position of $224,665 increased by $13,630 or 6.5% resulting from an increase of $23,381 in total assets and deferred outflows of resources, offset by a net increase of $9,751 in total 2021-2020 2020-2019
2021 2020 2019 Change Change
Total assets:

Current and other assets $ 121,342 121,879 63,044 (537) 58,835 Total assets 121,342 121,879 63,044 (537) 58,835
Deferred outflows of resources:

Pensions 803 572 339 231 233
Other post-employment benef ts 442 270 108 172 162
Total deferred outflows of resources 1,245 842 447 403 395 Liabilities:

Current liabil ties 17,389 24,991 * 17,056 (7,602) 7,935 Long-term liabil ties 15,112 4,171 6,116 * 10,941 (1,945) Total liabil ties 32,501 29,162 23,172 3,339 5,990 Deferred inflows of resources:

Related to pensions 1,093 1,210 203 (117) 1,007
Other post-employment benef ts 1,913 1,211 115 702 1,096 Total deferred inflows of resources 3,006 2,421 318 585 2,103 Net position:

Unrestricted 87,080 91,138 40,001 (4,058) 51,137
Total net position $ 87,080 91,138 40,001 (4,058) 51,137 Table 1D - CleanPowerSF
Comparative Condensed Net Position
June 30, 2021, 2020, and 2019

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

13 (Continued)

liabilities and deferred inflows of resources (see Table 1B). The increase of $5,440 in current and other assets was attributed to increases of $7,423 in cash a n d i n v e s t m e n t w i t h C i t y T r e a s u r y m a i n l y d u e t o a $16,000 transfer from the Water Enterprise to fund upcountry projects, offset by higher project spending, $413 increase in charges for services receivables due to higher consumption from Lawrence Livermore National Laboratory, and $4 increase in inventory due to more purchases than issuances during the fiscal year. The increases were offset by decreases of $1,996 in due from other governments mainly due to prior year reimbursements received for disaster emergency recoveries related to the 2018 Moccasin Storm and $186 in interest receivables due to lower annualized interest rate. Prepaid charges, advances, and other receivables decreased by $114 due to $448 Rim Fire insurance recovery collections and $4 in amortization of the advance paid to the Recreation and Parks Depa rtment for the Civic Center Garage, offset by an increase of $338 in vendor prepayment to Turlock Irrigation District for Federal Energy Regulatory Commission (FERC) relicensing studies and California Department of Water Resources for annual dam fees.

Other decreases include $104 due from the City Attorney’s Office for legal services.

Capital assets, net of accumulated depreciation and amortization, increased by $16,699 or 10.4% to $177,481 primarily from construction and capital improvement activities for the Mountain Tunnel Improvement Project and Repair & Replacement Life Extension Program, and additions of facilities, improvements, machinery, and equipment. Deferred outflows of resources increased by $1,242 due to an increase of $1,393 in OPEB based on actuarial reports offset by a decrease of $151 in pensions.

Hetchy Water’s total liabilities increased by $12,208 or 25.9% to $59,418, as explained by increases of $5,778 in restricted payables to vendors and contractors mainly due to higher year-end expense accruals for capital projects, $5,168 in net pension liability based on actuarial report, $3,304 in unrestricted payables mainly for license and permit fees to National Park Service, $626 in employee related benefits including workers’ compensation, vacation, sick leave and accrued payroll mainly due to an extra day in current year- end payroll accrual when compared to prior year and a 3% cost of living adjustment increase in December 2020, and $4 increase in rental deposits. The increases were offset by decreases of $1,906 in OPEB obligations based on actuarial assumptions, $493 in grant advance due to recognition of Rim Fire grant revenue, $240 in payable due to the City Attorney’s Office for unbilled legal services, and $33 in general liability based on actuarial estimates.

Deferred inflows of resources decreased by $2,457 due to a decrease of $3,347 in relation to pensions offset by an increase of $890 in OPEB based on actuarial reports.

Hetchy Power

Hetchy Power’s net position of $472,464 increased by $6,857 or 1.5% resulting from an increase of $68,574 in total assets and deferred outflows of resources, offset by a net increase of $61,717 in total liabilities and deferred inflows of resources (see Table 1C). Increase of $20,430 in current and other assets was attributed to an increase of $16,057 in charges for services receivables, of which $15,673 was attributed to billing delays as a result of transition ing to new billing system implemented in April 2021. In addition, there was an increase of $1,051 in year-end accrual for California Independent System Operator (CAISO) Congestion Revenue Right (CRR) credits, offset by an increase of $667 in allowance for doubtful accounts due to increased past due balances as a result of the Mayor’s emergency proclamation that Hetchy Power temporarily suspend collection procedures and utility shutoffs for past due accounts to help customers with financial hardship due to COVID-19. Re stricted interest and other receivables increased by $11,632 mainly due to vendor prepayment to PG&E for the Bay Corridor Project.

Prepaid charges, advances, and other receivables increased by $405 mainly due to $496 increase in vendor prepayments to PG&E for electric system reliability compliance product offset by decreases of $61 in

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

14 (Continued)

receivables for the Distributed Antenna System (DAS) program due to more payments received, $16 in custom work receivables for Sunnydale Housing Projects, and $14 in amortization of the advance paid to the Recreation and Parks Department for the Civic Center Garage. Inventory increased by $211 due to more purchases than issuances during the fiscal year. The in creases were offset by $3,280 decrease in cash and investment with/outside City Treasury due primarily to increase in capital spending. Due from other City departments decreased by $2,763, attributed to the final repayments of $1,800 from CleanPowerSF for working capital loan, $506 for the Sustainable Energy Account, $331 from City Attorney’s Office for legal services, $109 from Wastewater Enterprise for the Living Machine System, and $105 from the Recreation and Parks Department for Energy Efficiency Projects, offset by increases of $46 in interest receivable from Treasure Island Development Authority (TIDA) in connection of an upgraded submarine power cable for the Treasure Island to increase service capacity and $42 from the Department of Public Works for Hunters Point Shipyard Development and Transbay Folsom Street Improvement custom work projects. Other decreases include $1,377 in grants receivable due to reimbursement received for disaster emergency recoveries related to the Rim Fire and 2018 Moccasin Storm, and $455 in interest receivables due to lower annualized interest rate.

Capital assets, net of accumulated depreciation and amortization, increased by $46,627 or 10.5% to $492,056 primarily due to additions of facilities, improvements, machinery, and equipment for the Bay Corridor Project and Holm Powerhouse Rehabilitation & Kirkwood Powerhouse Oil Containment Upgrades.

Deferred outflows of resources increased by $1,517 due to an increase of $1,702 in OPEB based on actuarial reports offset by a decrease of $185 in pensions.

Hetchy Power’s total liabilities of $279,195 increased by $64,721 or 30.2%. As of June 30, 2021, outstanding debts increased by $47,243 and was attributable to $51,136 in commercial paper issuance for Hetchy Power facilities, offset by $2,402 in bonds and certificates of participation principal repayments, $1,272 in return of unspent bond proceeds for 2015 NCREBs, and $219 in amortization of premium and discount. Other liabilities of $104,781, such as paya bles to vendors, employees, contractors, and other government agencies for goods and services under contractual agreements, increased by $17,478 or

20.0%, mainly due to increases of $8,724 in unrestricted payables mainly for wheeling charges to APX Inc., $6,934 restricted payables to vendors and contractors due to higher year-end expense accruals for capital projects, $6,317 in net pension liability based on actuarial report, and $876 in employee related benefits including workers’ compensation, vacation, sick leave and accrued payroll mainly due to an extra day in current year-end payroll accrual when compared to prior year and a 3% cost of living adjustment increase in December 2020. Offsetting decreases include $2,330 in OPEB obligations based on actuarial assumptions, $1,649 in unearned revenue, $1,114 in general liability based on actuarial estimates, $231 in due to City Attorney’s Office for unbilled legal services, and $49 in interest payable as a result of decreased outstanding debts and lower interest rates for commercial paper. Unearned revenue decreased by $1,649 due to $1,208 in remittance of utility tax collected, $1,193 in power revenue from commercial deposits, $681 in residential allowance refund for the Alice Griffith Housing Project, and $609 in recognition of Rim Fire grants revenue received in advance, offset by increases of $1,707 in deposits from custom work projects, $200 in prepayments from DAS program, $117 in overpayments received from customers, and $18 in deposits received from retail customers and security deposits for cottage rental.

Deferred inflows of resources decreased by $3,004 due to a decrease of $4,091 in relation to pensions offset by an increase of $1,087 in OPEB based on actuarial reports.

CleanPowerSF

CleanPowerSF’s net position of $87,080 decreased by $4,058 or 4.5%, resulting from a net decrease of $134 in total assets and deferred outflows of resources and a net increase of $3,924 in total liabilities and

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

15 (Continued)

deferred inflows of resources (see Table 1D). Total assets decreased by $537 due to a $6,447 decrease in charges for services receivables attributed to an increase of $3,675 in allowance for doubtful accounts due to higher past due balances in customer power utility accounts after the Mayor’s proclamation to extend the moratorium on utility shutoffs and bill collections to help customers experiencing financial hardship as a result of COVID-19. Other decreases include $2,772 in receivables mainly due to one-time customer assistance bill credits related to COVID-19 relief, $576 in prepaid charges, adva nces, and other receivables mainly due to lower vendor prepayments for purchased electricity and $160 in in terest receivables due to lower annualized interest rate. The decreases were offset by an increase of $6,646 in cash and investment with City Treasury mainly from cash collateral received for power purchase agreement.

Deferred outflows of resources increased by $403 due to increases of $231 in pensions and $172 in OPEB based on actuarial reports.

Total liabilities of $32,501 increased by $3,339 or 11.4%, which was mainly explained by $9,000 in cash collateral received for power purchase agreement (see Note 13(a)), $1,203 in net pension liability based on actuarial report, $712 in OPEB obligations based on actuarial assumptions, and an increase of $200 in employee related benefits including vacation, sick leav e and accrued payroll mainly due to an extra day in current year-end payroll accrual when compared to prior year, and a 3% cost of living adjustment increase in December 2020. Other increases in unearned revenues, refunds, and other, include $90 from net energy metering credits to retail and commercial customers, $86 from customer prepayments, and $4 from utility and electric energy surcharge tax payable. These increases were offset by decreases of $6,047 in payables to vendors and contractors mainly from lower power purchases, $1,809 due to other City departments ($1,800 final working capital loan repayment to Hetchy Power and $9 to City Attorney’s Office for unbilled legal services), and $100 in general liability based on actuarial estimates.

Deferred inflows of resources increased by $585 due to an increase of $702 in OPEB based on actuarial reports offset by a decrease of $117 in relation to pensions.

Net Position, Fiscal Year 2020

Hetch Hetchy

Hetch Hetchy’s total net position increased from prior year by $80,891 or 11.8% (see Table 1A). The increase in net position was the result of an increase of $110,181 in total assets and deferred outflows of resources, offset by an increase of $29,290 in total liabilities and deferred inflows of resources.

Current and other assets were $441,635, a $48,668 or 12.4% increase from prior year with elimination of a $1,800 working capital loan from Hetchy Power to CleanPowerSF. The increase was primarily due to an increase of $49,328 in cash and investment with/outside City Treasury as a result of higher collection from CleanPowerSF electricity sales. Due from other City departments increased by $3,623, of which $3,981 was a receivable from the Treasure Island Development Authority (TIDA) in connection of an upgraded submarine power cable for the Treasure Island to increase service capacity and $435 from the City Attorney’s Office for legal services; offset by repayments of $506 for the Sustainable Energy Account, $108 from the Wastewater Enterprise for the Living Machine System, $105 from the Recreation and Parks Department for Energy Efficiency Projects, and $74 from the Department of Public Works for Hunters Point Shipyard Development Project and Transbay Folsom Street Improvement custom work projects. Other increases included $707 in grants receivables from State and Federal related to disaster emergency recoveries for the 2018 Moccasin Storm Project, Early Intake Switchyard Project and Rim Fire Project; and $181 in inventory due to more purchases than issuances during the fiscal year. These increases were offset by decreases of $2,964 in charges for services receivable due to $1,797 increase in allowance for uncollectible attributable to higher

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

16 (Continued)

past due balances as a result of the Mayor’s emergency declaration that Hetch Hetchy temporarily suspended collection procedures for past due accounts to help customers with financial hardship due to COVID-19, $1,127 in lower year-end accrual for California Independent System Operator (CAISO) Congestion Revenue Right (CRR) credits, and $40 decrease in bi llings due to lower consumption. Prepaid charges, advances, and other receivables decreased by $1,117 due to payment of $2,209 billing credits from Western Area Power Administration, $45 in lower vendor prepayments, and $17 in amortization of the advance paid to the Recreation and Parks Department for the Civic Center Garage; offset by increases of $615 in receivables for the Distributed Antenna System (DAS) program due to higher billings, $448 in Rim Fire insurance recoveries, $80 in rental receivables, and $11 in custom work receivables for the Sunnydale Housing Projects. Interest receivables decreased by $1,090 due to lower annualized interest rate.

Capital assets, net of accumulated depreciation and amortization, increased by $55,580 or 10.1% to $606,211 primarily from construction and capital improvement activities, and additions of facilities, improvements, machinery, and equipment. Deferred outflows of resources increased by $5,933 due to increases of $3,573 in pensions and $2,360 in other post-employment benefits (OPEB) based on actuarial reports.

Total liabilities increased by $26,681 or 10.2%, to $289,046. A working capital loan of $1,800 due to Hetchy Power from CleanPowerSF was eliminated upon consolidation. As of June 30, 2020, outstanding debts increased by $9,689 attributed to $12,811 in commercial paper issuance for Hetchy Power facilities, offset by decreases of $2,894 in bonds and certificates of participation principal repayments and $228 in amortization of premium and discount. Other liabilit ies of $161,875, such as payables to vendors, contractors, and other government agencies for goods and services under contractual agreements, increased by $16,992 or 11.7%, mainly due to increases of $8,235 in restricted and unrestricted payables to vendors and contractors, of which $5,696 from CleanPowerSF due to higher power purchases and $3,239 from Hetchy Power due to higher capital spending, offset by a decrease of $700 from Hetchy Water due to reduced capital spending. Net pension liabilit y increased by $3,151 based on actuarial report, and $3,058 increase in OPEB obligations based on actuar ial assumptions. Other increases included $1,318 in employee related benefits including workers’ compensation, vacation, sick leave and accrued payroll mainly due to more days in current year-end payroll accrua l when compared to prior year, coupled with a 3% increase of cost of living adjustment (COLA), $602 in general liability based on actuarial estimates, $499 in due to other City departments, including $480 to the City Attorney’s Office for unbilled legal services and $19 to the Port of San Francisco for Pier 70 Shoreside Power Project. Unearned revenue increased by $163 d u e t o $ 3 6 0 i n d e p o s i t s f r o m c u s t o m w o r k p r o j e c t s , $ 3 0 6 i n n e t e n e r g y m e t e r i n g c r e d i t s f r o m CleanPowerSF, $11 in prepayments from the DAS program, and $3 from prepaid rent; offset by decreases of $440 in customer deposits from retail and commercial cu stomers, and $77 in sales ta x, utility, and electric energy surcharge tax payables. These increases were offset by a decrease of $34 in interest payable due to lower bond and loan outstanding.

Deferred inflows of resources increased by $2,609 due to a $2,032 increase in pensions and a $577 increase in OPEB based on actuarial reports.

Hetchy Water

Hetchy Water’s net position of $211,035 increased by $9,862 or 4.9% resulting from an increase of $12,450 in total assets and deferred outflows of resources, offset by an increase of $2,588 in total liabilities and deferred inflows of resources (see Table 1B). Decrease of $1,721 in current and other assets was attributed to decreases of $1,166 in cash and in vestment with City Treasury mainly due to reduced project spending, $336 in State grant receivable mainly from reimbursement related to disaster emergency recoveries for the Lower Cherry Aqueduct Project, $308 in interest receivables due to lower annualized

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

17 (Continued)

interest rate, $50 decrease in charges for services receivables mainly due to lower consumption from Lawrence Livermore National Laboratory, and $11 decrease in inventory due to more issuance than purchase during the fiscal year. The decrease was offset by increases of $104 in due from the City Attorney’s Office for legal services, and $46 in prepaid charges, advances, and other receivables, of which $448 in pending Rim Fire insurance recoveries and $36 in rental receivables; offset by decreases of $434 in vendor prepayment mainly for Don Pedro Reservoir operating license and $4 in amortization of the advance paid to the Recreation and Parks Department for the Civic Center Garage.

Capital assets, net of accumulated depreciation and amortization, increased by $11,679 or 7.8% to $160,782 primarily due to additions of facilities, improvements, machinery, and equipment. Deferred outflows of resources increased by $2,492 due to increases of $1,503 in pensions and $989 in OPEB based on actuarial reports.

Hetchy Water’s total liabilities increased by $2,361 or 5.3% to $47,210, as explained by increases of $1,087 in net pension liability based on actuarial re port, $946 in OPEB obligations based on actuarial assumptions, $450 in employee related benefits including workers’ compensation, vacation, sick leave and accrued payroll mainly due to more days in current ye ar-end payroll accrual when compared to prior year, coupled with a 3% increase of COLA, $334 in general liability based on actuarial estimates, $240 in payable due to the City Attorney’s Office for unbilled legal services, and $4 in unearned revenue mainly due to $7 increase in rental deposits, offset by a decrease of $3 in sales tax payables. The increases were offset by a decrease of $700 in restricted and unrestricted payables to vendors and contractors due to lower capital spending.

Deferred inflows of resources increased by $227 due to an increase of $461 related to pensions, offset by a decrease of $234 in OPEB based on actuarial reports.

Hetchy Power

Hetchy Power’s net position of $465,607 increased by $19,892 or 4.5% resulting from an increase of $36,570 in total assets and deferred outflows of resources, offset by an increase of $16,678 in total liabilities and deferred inflows of resources (see Table 1C). Current and other assets decreased by $10,377 or 4.3%, of which $8,184 decrease in cash and investment with/outside City Treasury due primarily to increase in operating and capital spending. Charges for services receivable decreased by $2,837 due to decreases of $1,138 in billings, $1,127 in lower year-end accrual for CAISO CRR credits as related to prior year, and $572 increase in allowance for uncollectible due to higher past due balances as a result of the Mayor’s emergency declaration that Hetch Hetchy temporarily suspended collection procedures for past due accounts to help customers with financial hardship due to COVID-19. Prepaid charges, advances, and other receivables decreased by $1,379 due to payment of $2,209 billing credits from Western Area Power Administration, and $13 in amortization of the advance paid to the Recreation and Parks Department for the Civic Center Garage, offset by increases of $615 in receivables for the DAS program due to higher billings, $173 in vendor prepayment for license and permit fees, $44 in rental receivables, and $11 in custom work receivables for the Sunnydale Housing Projects. Interest receivables decreased by $800 due to lower annualized interest rate. These decreases were offset by an increase of $1,588 in due from other City departments, of which $3,981 was a receivable from the TIDA in connection of an upgraded submarine power cable for the Treasure Island to increase service capacity and $331 from the City Attorney’s Office for legal services; offset by repayments of $2,000 from CleanPowerSF for working capital loan net of accrued interest of $69, $506 for the Sustainable Energy Acco unt, $108 from the Wastewater Enterprise for the Living Machine System, $105 from the Recreation and Parks Department for Energy Efficiency Projects, and $74 from the Department of Public Works for Hunters Point Shipyard Development, and Transbay Folsom Street Improvement custom work projects. State and Federal grants receivables increased by $1,043 due to

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

18 (Continued)

disaster emergency recoveries for the 2018 Moccasin Storm Project, Early Intake Switchyard Project and Rim Fire Project, and $192 increase in inventory due to more purchase than issuance during the fiscal year.

Capital assets, net of accumulated depreciation and amortization, increased by $43,901 or 10.9% to $445,429 primarily from construction and capital improvement activities. Deferred outflows of resources increased by $3,046 due to increases of $1,837 in pensions and $1,209 in OPEB based on actuarial reports.

Hetchy Power’s total liabilities of $214,474 increased by $16,399 or 8.3%. As of June 30, 2020, outstanding debts increased by $9,689 and was attributable to $12,811 in commercial paper issuance for Hetchy Power facilities, offset by decreases of $2,894 in bonds and certificates of participation principal repayments and $228 in amortization of premium and discount. Other liabilities of $87,303, such as payables to vendors, contractors, and other government agencies for g oods and services under contractual agreements, increased by $6,710 or 8.3%, mainly attributable to increases of $3,239 in restricted and unrestricted payables to vendors and contractors due to higher capital spending, $1,329 in net pension liability based on actuarial report, $1,157 in OPEB obligations based on actuarial assumptions, $747 in employee related benefits including workers’ compensation, vacation, sick leave and accrued payroll mainly due to more days in current year-end payroll accrua l when compared to prior year, coupled with a 3% increase of COLA, $250 increase in due to other City departments, including $231 to the City Attorney’s Office for unbilled legal services and $19 to the Port of San Francisco for Pier 70 Shoreside Power Project, and $169 in general liability based on actuarial estima tes. These increases were offset by a decrease of $147 in unearned revenue, of which $446 in customer deposits from retail and commercial customers and $74 in sales tax, utility, and electric energy surcharge tax payables, offset by increases of $360 in deposits from custom work projects, $11 in prepayments for the DAS program, and $2 from prepaid rent. Interest payable decreased by $34 due to lower bond and loan outstanding.

Deferred inflows of resources increased by $279 due to a $564 increase in pensions, offset by a decrease of $285 in OPEB based on actuarial reports.

CleanPowerSF

CleanPowerSF’s net position of $91,138 increased by $51,137 or 127.8%, resulting from an increase of $59,230 in total assets and deferred outflows of resources, offset by an increase of $8,093 in total liabilities and deferred inflows of resources (see Table 1D). Increase in total assets was $58,835 due to $58,678 in cash and investment with City Treasury from higher electricity sales, $216 in prepaid charges, advances, and other receivables mainly due to higher vendor prepayments for purchased electricity, and $18 increase in interest receivable due to higher average cash balance. Charges for services receivables decreased by $77 due to increase of $1,225 in allowance for uncollectible attributable to higher past due balances as a result of the Mayor’s emergency declaration that Hetch Hetchy temporarily suspended collection procedures for past due accounts to help customers with financial hardship due to COVID-19, offset by $1,148 increase in billings from higher consumption.

Deferred outflows of resources increased by $395 due to increases of $233 in pensions and $162 in OPEB based on actuarial reports.

Total liabilities of $29,162 increased by $5,990 or 25.9%, which was explained by $5,696 in payables to vendors and contractors for goods and services under contractual agreements as a result of higher power purchases, $955 in OPEB obligations based on actuar ial assumptions, $735 in net pension liability based on actuarial report, $306 in unearned revenue, of which $306 from net energy metering credits to retail and commercial customers, and $13 from utility and electric energy surcharge tax payables, offset by a decrease

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

19 (Continued)

of $13 from customers’ prepayments. Employee related benefits including vacation, sick leave and accrued payroll increased by $121 mainly due to more days in current year-end payroll accrual when compared to prior year, coupled with a 3% increase of COLA. General liability increased by $99 based on actuarial estimates. The increases were offset by a decrease of $1,922 in due to other City departments, including $2,000 working capital loan repayment to Hetchy Power, net of $69 accrued interest, and $9 to City Attorney’s Office for unbilled legal services.

Deferred inflows of resources increased by $2,103 due to a $1,096 increase in OPEB and a $1,007 increase in pensions based on actuarial reports.

Results of Operations
The following tables summarize Hetch Hetchy’s revenues, expenses, and changes in net position:

2021-2020 2020-2019
2021 2020 2019 Change Change
Revenues:

Charges for services $ 390,924 420,937 345,109 (30,013) 75,828 Rents and concessions 247 347 277 (100) 70 Interest and investment (loss) income (157) 9,449 10,288 (9,606) (839) Other non-operating revenues 21,552 28,868 13,920 (7,316) 14,948 Total revenues 412,566 459,601 369,594 (47,035) 90,007 Expenses:

Operating expenses 408,871 389,026 310,277 19,845 78,749 Interest expenses 1,988 2,809 3,066 (821) (257) Amortization of premium, discount, and issuance costs (219) (228) (237) 9 9 Non-operating expenses 965 1,071 1,365 (106) (294) Total expenses 411,605 392,678 314,471 18,927 78,207 Change in net position before transfers 961 66,923 55,123 (65,962) 11,800 Transfers from the City and County of San Francisco 16,000 14,000 24,522 2,000 (10,522) Transfers to the City and County of San Francisco (532) (32) (32) (500) — Net transfers 15,468 13,968 24,490 1,500 (10,522) Change in net position 16,429 80,891 79,613 (64,462) 1,278 Net position at beginning of year 767,780 686,889 607,276 80,891 79,613 Net position at end of year $ 784,209 767,780 686,889 16,429 80,891 Table 2A - Consolidated Hetch Hetchy
Comparative Condensed Revenues, Expenses, and Changes in Net Position Years ended June 30, 2021, 2020, and 2019

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

20 (Continued)

2021-2020 2020-2019
2021 2020 2019 Change Change
Revenues:

Charges for services $ 46,979 34,797 33,880 12,182 917 Rents and concessions 111 156 125 (45) 31 Interest and investment (loss) income (232) 1,932 2,670 (2,164) (738) Other non-operating revenues 1,352 3,861 3,013 (2,509) 848 Total revenues 48,210 40,746 39,688 7,464 1,058 Expenses:

Operating expenses 50,517 44,873 50,305 5,644 (5,432) Non-operating expenses 63 11 — 52 11 Total expenses 50,580 44,884 50,305 5,696 (5,421) Change in net position before transfers (2,370) (4,138) (10,617) 1,768 6,479 Transfers from the City and County of San Francisco 16,000 14,000 20,000 2,000 (6,000) Change in net position 13,630 9,862 9,383 3,768 479 Net position at beginning of year 211,035 201,173 191,790 9,862 9,383 Net p
osition at end of year $ 224,665 211,035 201,173 13,630 9,862 Table 2B - Hetchy Water
Years ended June 30, 2021, 2020, and 2019
Comparative Condensed Revenues, Expenses, and Changes in Net Position 2021-2020 2020-2019
2021 2020 2019 Change Change
Revenues:

Charges for services $ 136,247 140,680 143,409 (4,433) (2,729) Rents and concessions 136 191 152 (55) 39 Interest and investment income 24 5,746 6,883 (5,722) (1,137) Other non-operating revenues 19,273 25,006 10,907 (5,733) 14,099 Total revenues 155,680 171,623 161,351 (15,943) 10,272 Expenses:

Operating expenses 145,638 148,127 122,688 (2,489) 25,439 Interest expenses 1,970 2,740 2,936 (770) (196) Amortization of premium, discount, and issuance costs (219) (228) (237) 9 9 Non-operating expenses 902 1,060 1,365 (158) (305) Total expenses 148,291 151,699 126,752 (3,408) 24,947 Change in net position before transfers 7,389 19,924 34,599 (12,535) (14,675) Transfers from the City and County of San Francisco — — 4,522 — (4,522) Transfers to the C ty and County of San Francisco (532) (32) (32) (500) — Net transfers (532) (32) 4,490 (500) (4,522) Change in net position 6,857 19,892 39,089 (13,035) (19,197) Net position at beginning of year 465,607 445,715 406,626 19,892 39,089 Net position at end of year $ 472,464 465,607 445,715 6,857 19,892 Years ended June 30, 2021, 2020, and 2019
Table 2C - Hetchy Power
Comparative Condensed Revenues, Expenses, and Changes in Net Position

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

21 (Continued)

Result of Operations, Fiscal Year 2021

Hetch Hetchy

Hetch Hetchy’s total revenues were $412,566, a decrease of $47,035 or 10.2% over prior year (see Table 2A). Charges for services decreased by $30,013 or 7.1% from prior year’s revenues mainly due to lower billings from CleanPowerSF and Hetchy Power. Total expenses increased by $18,927 or 4.8% primarily due to increase in California Independent System Operator (CAISO) charges for CleanPowerSF market energy purchases (See Table 2A).

Hetchy Water

Hetchy Water’s total revenues were $48,210, an increase of $7,464 or 18.3% from prior year’s revenues (see Table 2B). Increase was due to $12,182 from charges for services, offset by decreases of $2,509 from other non-operating revenues, $2,164 in interest and investment income, and $45 from rents and concessions.

Charges for services were $46,979, an increase of $12,182 or 35.0% mainly due to increased water assessment fees from the Water Enterprise to fund upcountry water-related costs and higher consumption from Lawrence Livermore National Laboratory. Rents were $111, a decrease of $45 or 28.8% mainly from lower cottage rental revenue. Other non-operating revenues were $1,352, a decrease of $2,509 or 65.0% mainly due to decreases of $1,510 in Federal and State grants revenue resulting from lower collections from State grants related to 2018 Moccasin Storm, $995 from prior year Rim Fire recoveries, and $4 in net gain from sale of fixed assets. Interest and investment loss was $232 mainly du e to unrealized loss attributed to decrease in market value in cash and investments with City Treasury and lower interest rates.

Total operating expenses, excluding other non-operating expenses, were $50,517, an increase of $5,644 or

12.6%. The increase was attributed to $3,567 in pe rsonnel services resulting from cost of living adjustments, higher retirement contribution rates, an d increased personnel and fr inge benefit costs. Other increases include $773 in contractual services ma inly from increased engineering and management consulting services, $733 in depreciation and amortization related to additional building, structure and equipment placed in service, $664 in services provided by other departments mainly due to higher bureau support costs and legal service charges from City Attorney’s Office, and $162 in other operating expenses 2021-2020 2020-2019
2021 2020 2019 Change Change
Revenues:

Charges for services $ 207,698 245,460 167,820 (37,762) 77,640 Interest and investment income 51 1,771 735 (1,720) 1,036 Other non-operating revenues 927 1 — 926 1 Total revenues 208,676 247,232 168,555 (38,556) 78,677 Expenses:

Operating expenses 212,716 196,026 137,284 16,690 58,742 Interest expenses 18 69 130 (51) (61) Total expenses 212,734 196,095 137,414 16,639 58,681 Change in net position (4,058) 51,137 31,141 (55,195) 19,996 Net pos tion at beginning of year 91,138 40,001 8,860 51,137 31,141 Net pos tion at end of year $ 87,080 91,138 40,001 (4,058) 51,137 Table 2D - CleanPowerSF
Comparative Condensed Revenues, Expenses, and Changes in Net Position Years ended June 30, 2021, 2020, and 2019

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

22 (Continued)

mainly due to higher capital spending. These increases were offset by decreases of $190 in general and administrative expenses mainly due to lower judgements and claims expenses and $65 decrease in materials and supplies mainly for water and sewage treatment supplies.

Other non-operating expenses were $63, an increase of $52 due to payments to community-based organization programs. A transfer in of $16,000 was re ceived from the Water Enterprise to fund upcountry projects.

As a result of the above activities, net position for the year ended June 30, 2021 increased by $13,630 or

6.5% compared to prior year.

Hetchy Power

Hetchy Power’s total revenues were $155,680, a decrease of $15,943 or 9.3% from prior year’s revenues (see Table 2C). Decreases included $5,733 from othe r non-operating revenues, $5,722 from interest and investment income, $4,433 from charges for services, and $55 from rents and concessions.

Charges for services were $136,247, a decrease of $4,433 or 3.2% was attributed to a decrease of $8,362 in sales to City departments, wholesale, and Treasu re Island customers due to COVID-19 related impacts and $667 increase in allowance for doubtful accounts. Receivables aging over 120 days increased significantly due to the suspension of collection efforts and moratorium on utility shutoffs in response to the COVID-19 emergency proclamation issued by the Mayor. The decrease was offset by increases of $2,537 in sales to retail customers mainly due to new affordable redevelopment housing accounts and $2,059 in resale of capacity to CleanPowerSF due to excess capaci ty of electric system reliability compliance product.

Rents were $136, a decrease of $55 or 28.8% mainly due to lower cottage rental revenue. Interest and investment income were $24, a decrease of $5,722 or 99.6% mainly due to decreases of $4,691 in interest earned from lower interest rates and cash balance, unrealized loss, and $1,031 from interest accrued for Treasure Island submarine power cable in prior year.

Other non-operating revenues were $19,273, a decrease of $5,733, or 22.9%, mainly due to decreases of $5,739 from Low Carbon Fuel Standard (LCFS) credit sa les revenue, attributed to less carbon fuel credit generated by San Francisco Municipal Transportation Agency, $2,574 in license fee from Transbay Cable Project due to final payment received in prior year, $1,139 in Cap and Trade revenue due to decrease of 23,000 or 16% allowance sold, and $654 decrease in fees collected from DAS program. Other decreases include $402 in State and Federal grants revenue result ing from lower collections from State grants related to 2018 Moccasin Storm and Federal grants related to Hazard Mitigation grant, $70 in Federal interest subsidy due to lower debt outstanding, $37 in damage claims revenue, and $5 in net gain from sale of fixed assets. These decreases were offset by increases of $2,921 in collection for Power System Impact Mitigation Project, $797 in settlement revenue related to litigation, $736 in commercial deposits from Alice Griffith Housing Project recognized as revenue, $259 in overhead charges, and $174 in miscellaneous revenue mainly from generation interconnection study and refunds from vendor.

Total operating expenses, excluding interest expenses, other non-operating expenses, and amortization of premium, discount, and issuance costs, decreased by $2,489 or 1.7%, to $145,638. The decrease was primarily due to $6,138 in purchased electricity and transmission, distribution, and other power costs due to lower electricity sales, $289 in services provided by other departments mainly due to lower bureau support costs, $270 in material and supplies due to lower equipment maintenance, and $96 decrease in depreciation and amortization for machinery and equipment. The decreases were offset by increases of $1,704 in general and administrative expenses mainly due to higher litigation expenses, $1,572 in other operating expenses mainly due to higher capital spending, $984 in contractual services mainly from new in-

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

23 (Continued)

city inventory warehouse rental at Pier 23 in San Francisco, and $44 in personnel services resulting from cost of living adjustments, higher retirement cont ribution rates, higher pension obligations based on actuarial reports, and increased personnel and fringe benefit costs.

Interest expenses were $1,970, a decrease of $770 or 28.1% due to decrease in outstanding debt and lower interest rates for commercial paper. Amortization of premium and discount slightly decreased by $9 or

3.9% to $219.

Other non-operating expenses were $902, a decrease of $158 or 14.9% mainly due to decrease in payments for GoSolarSF Incentive Program. Transfer out of $532 includes $500 to General Fund for repayment of Educational Revenue Augmentation Funds an d $32 to the Office of the City’s Administrator for the Surety Bond Program.

As a result of the above activities, net position for the year ended June 30, 2021 increased by $6,857 or

1.5% compared to prior year.

CleanPowerSF

CleanPowerSF’s total revenues were $208,676, a $38,556 or 15.6% decrease over prior year (see Table 2D). Charges for services decreased by $37,762 or 15.4% mainly due to a decrease of $32,077 in electricity sales to retail and commercial customers resulting from consumption decrease of 92,503 MWh or 3%, a one-time customer assistance bill credit of $2,817 rela ted to COVID-19 utility bill relief, an increase of $2,451 in allowance for doubtful accounts, and $417 lower capacity sales to other entities. Receivables aging over 120 days increased significantly due to the suspension of collection efforts and moratorium on utility shutoffs in response to the COVID-19 emergency proclamation issued by the Mayor. Interest and investment income decreased by $1,720 or 97.1% due to unrealized loss and lower interest rates on pooled cash and investments. Other non-operating revenue increased by $926 due to liquidated damage compensation from vendor for the delay of Renewable Energy Project.

Total operating expenses, excluding interest expenses were $212,716, an increase of $16,690 or 8.5% from prior year. The increase was due to $16,219 in purchased electricity and transmission, distribution and other power costs as a result of higher prices in the CAISO market and increase in resource adequacy capacity purchases related to new compliance requiremen ts from the California Public Utilities Commission.

Other increases include $1,200 in services provided by other departments due to increased labor support from Hetchy Power and legal service charges from City Attorney’s Office, and $305 increase in other operating expenses mainly from the Neighborhood Steward Program and the new Local Renewable Energy Program. These increases were offset by decreases of $529 in professional and contractual services mainly from lower management consulting services, $279 in personnel services mainly due to lower pension obligations and OPEB based on actuarial reports, $195 in general and administrative expenses mainly due to lower judgements and claims based on actuarial estimates, and $31 in material and supplies due to reduced furnishings expenses. Interest expenses were $18, a decrease of $51 or 73.9% due to lower principal outstanding from Hetchy Power working capital loan.

As a result of the above activities, net position for the year ended June 30, 2021 decreased by $4,058 or

4.5% compared to prior year.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

24 (Continued)

Result of Operations, Fiscal Year 2020

Hetch Hetchy

Hetch Hetchy’s total revenues were $459,601, an increase of $90,007 or 24.4% over prior year (see Table 2A). Charges for services were $420,937, an increase of $75,828 or 22%, due to increases of $77,640 from CleanPowerSF electricity sales and $917 from Hetchy Water due to increased water assessment fees from the Water Enterprise to fund upcountry water-related costs, offset by a decrease of $2,729 from Hetchy Power mainly due to lower electricity sales to retail and Treasure Island customers and lower Congestion Revenue Right (CRR) credit payments from CAISO. Other non-operating revenues increased by $14,948 or 107.4% mainly due to increases of $6,920 from Low Carbon Fuel Standard (LCFS) credit sales revenue and $4,825 from the Power System Impact Mitigation Project. Hetch Hetchy’s total expenses were $392,678, an increase of $78,207 or 24.9% over prior year.

Hetchy Water

Hetchy Water’s total revenues were $40,746, an increase of $1,058 or 2.7% from prior year’s revenues (see Table 2B). Increases included $917 from charges for services, $848 from other non-operating revenues, and $31 from rents and concessions. These increases were offset by a decrease of $738 in interest and investment income.

Charges for services were $34,797, an increase of $917 or 2.7% due to increased water assessment fees from the Water Enterprise to fund upcountry water-related costs. Rents were $156, an increase of $31 or

24.8% mainly from cottage rental revenue. Other non-operating revenues were $3,861, an increase of $848 or 28.1% mainly due to payment of $995 from Rim Fi re insurance recoveries, offset by decreases of $125 collections from State grants related to 2018 Moccasin Storm Project and Lower Cherry Aqueduct Project, $18 in overhead charges and $4 decrease in net gain from sale of fixed assets and scrap. Interest and investment income were $1,932, a decrease of $738 or 27.6% mainly due to lower unrealized gains attributed to decrease in market value in cash and investments with City Treasury.

Total operating expenses, excluding other non-operatin g expenses were $44,873, a decrease of $5,432 or

10.8%. The decrease was attributed to $8,831 in other operating expenses mainly due to reduced capital spending and $104 in depreciation and amortization related to building, structure and equipment. These decreases were offset by increases of $2,597 in personnel services resulting from cost of living adjustments, higher retirement contribution rates, higher pension obligations based on actuarial reports and increased personnel and fringe benefit costs, $437 in contractual services mainly from increased engineering services, $231 in services provided by other departments mainly due to higher light, heat, and power charges, $204 in water and sewage treatment supplies for water facilities, and $34 in general and administrative expenses mainly due to higher judgements and claims based on actuarial estimates.

Other non-operating expenses increased by $11 due to payments to community-based organization programs. Transfer in of $14,000 was received from the Water Enterprise to fund upcountry projects.

As a result of the above activities, net position for the year ended June 30, 2020 increased by $9,862 or

4.9% compared to prior year.

Hetchy Power

Hetchy Power’s total revenues were $171,623, an increase of $10,272 or 6.4% from prior year’s revenues (see Table 2C). Increases included $14,099 from other non-operating revenues and $39 from rents and

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

25 (Continued)

concessions. The increases were offset by decreases of $2,729 from charges for services and $1,137 from interest and investment income.

Charges for services were $140,680, a decrease of $2,729 or 1.9% was attributed to decreases of $4,213 in sale of electricity to retail, wholesale and Treasure Island customers due to COVID-19 and CAISO CRR credits, and $709 in resale of capacity related to electric system reliability compliance product, offset by an increase of $2,193 in sales to other City departments mainly due to average rate increase. Rents were $191, an increase of $39 or 25.7% mainly from cottage rental revenue. Interest and investment income were $5,746, a decrease of $1,137 or 16.5% mainly due to $1,073 in interest earned resulting from lower interest rates and $1,023 in unrealized gains attributed to decrease in market value in cash and investments with City Treasury, offset by an increase of $959 in interest accrued in connection of an upgraded submarine power cable for the Treasure Island. Other non-operating revenues were $25,006, an increase of $14,099 or 129.3% mainly due to $6,920 from LCFS credit sales revenue, $4,825 from the Power System Impact Mitigation Project, $1,610 in fees collected from the DAS program, $1,479 in State and Federal grants related to disaster emergency recoveries for the 2018 Moccasin Storm Project, Early Intake Switchyard Project and Rim Fire Project, $3 41 in Cap and Trade revenues, $92 reimbursement for the Central Subway Project, $52 in annual license fee received from the Transbay Cable Project, $42 in damage claims, and $12 in overhead charges. These increases were offset by decreases of $705 in Rim Fire insurance recoveries from prior year, $330 in miscellaneous revenue from completion of Hunters Point Projects, $195 in settlement received from prior year, $41 in Federal interest subsidy due to lower debt outstanding, and $3 in net gain from sale of fixed assets, scrap, and waste.

Total operating expenses, excluding interest expenses, other non-operating expenses, and amortization of premium, discount, and issuance costs, increased by $25,439 or 20.7% to $148,127. The increase was attributed to $16,130 in other operating expenses mainly due to lower capitalization of project expense, $3,129 in personnel services resulting from cost of living adjustments, higher retirement contribution rates, higher pension obligations based on actuarial report s and increased personnel and fringe benefit costs, $1,656 in contractual services mainly for equipment maintenance and property rent, $1,588 in materials and supplies mainly explained by prior year recognition of material and supplies to inventory for the in-city warehouse, $1,394 in purchased electricity and transmission, distribution and other power costs mainly due to wheeling charge rate increase, $1,239 in depreciation and amortization related to additional building, structure and equipment placed in service, and $710 in general and administrative expenses mainly due to judgements and claims based on actuarial estimates. These increases were offset by a decrease of $407 in services of other departments mainly due to legal services provided by City Attorney. Interest expenses were $2,740, a decrease of $196 or 6.7% mainly due to higher capitalized interest. Amortization of premium and discount slightly decreased by $9 or 3.8% to $228.

Other non-operating expenses were $1,060, a decrease of $305 or 22.3% due to $354 in loss from sale of fixed assets in prior year, offset by an increase of $49 in payments for GoSolarSF Incentive Program and community-based organization programs. Transfer out of $32 to the Office of the City’s Administrator for the Surety Bond Program.

As a result of the above activities, net position for the year ended June 30, 2020 increased by $19,892 or

4.5% compared to prior year.

CleanPowerSF

CleanPowerSF’s total revenues were $247,232, a $78,677 or 46.7% increase over prior year (see Table 2D). Charges for services increased by $77,640 or 46.3% mainly due to $74,099 increased electricity sales to retail and commercial customers, and $3,541 from capacity sales to Hetchy Power and other entities.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

26 (Continued)

Consumption increased to 1,010,934 MWh or 51% and number of customer accounts have grown from 376,787 to 383,895 as of June 2020. Interest and investment income increased by $1,036 or 141% due to $638 in interest earned resulting from higher average cash balance and $398 in unrealized gains attributed to increase in market value in cash and investme nts with City Treasury. Other non-operating revenue increased by $1 due to termination fees from customers.

Total operating expenses, excluding interest expenses were $196,026, an increase of $58,742 or 42.8% from prior year. The increase was due to $51,932 in purchased electricity and transmission, distribution and other power costs as a result of higher electricity sales, $3,308 in personnel services resulting from cost of living adjustments, higher retirement contribution rates, higher pension obligations based on actuarial reports and increased personnel and fr inge benefit costs, $2,771 in professional and contractual services mainly from services provided by Calpine Energy Solution for customer billings, $1,142 in general and administrative mainly from increased taxes, license, and permits fees, $63 in other operating expenses mainly from the Neighborhood Steward Program Project and $6 in materials and supplies. These increases were offset by a decrease of $480 in services provided by other departments mainly explained by lower mail services and support provided by Hetchy Power for administrative services. Interest expenses were $69, a decrease of $61 or 46.9% due to lower outstanding balance for the working capital loan from Hetchy Power.

As a result of the above activities, net position for the year ended June 30, 2020 increased by $51,137 or 127.8% compared to prior year.

Capital Assets

The following tables summarize Hetch Hetchy’s changes in capital assets.

2021-2020 2020-2019
2021 2020 2019 Change Change
Hetch Hetchy
Facilities, improvements, machinery, and equipment $ 432,916 386,560 359,986 46,356 26,574 Intangible assets 24,932 25,393 25,854 (461) (461) Land and rights-of-way 5,181 5,181 5,181 — — Construction work in progress 206,508 189,077 159,610 17,431 29,467 Total 669,537 606,211 550,631 63,326 55,580
Hetchy Water
Facilities, improvements, machinery, and equipment 128,335 122,433 97,250 5,902 25,183 Intangible assets 10,581 10,789 10,996 (208) (207) Land and rights-of-way 3,232 3,232 3,232 — — Construction work in progress 35,333 24,328 37,625 11,005 (13,297) Total 177,481 160,782 149,103 16,699 11,679
Hetchy Power
Facilities, improvements, machinery, and equipment 304,581 264,127 262,736 40,454 1,391 Intangible assets 14,351 14,604 14,858 (253) (254) Land and rights-of-way 1,949 1,949 1,949 — — Construction work in progress 171,175 164,749 121,985 6,426 42,764 Total $ 492,056 445,429 401,528 46,627 43,901
Table 3A - Capital Assets, Net of Accumulated Depreciation and Amortization As of June 30, 2021, 2020, and 2019

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

27 (Continued)

Capital Assets, Fiscal Year 2021

Hetch Hetchy

Hetch Hetchy has capital assets of $669,537, net of accumulated depreciation and amortization, invested in both water and power utility capital assets as of June 30, 2021 (see Table 3A). This amount represents an increase of $63,326 or 10.4%, resulting from increases of $46,356 in facilities, improvements, machinery and equipment and $17,431 in construction work in prog ress, offset by a decrease of $461 in amortization of intangible assets. The investment in capital assets includes land, buildings, improvements, hydropower facilities, dams, transmission lines, machinery, and equipment.

Major additions to construction work in progress, depreciable facilities, improvements, intangible assets, machinery, and equipment placed in service, including transfers of completed projects from construction work in progress, during the year ended June 30, 2021 include the following:

Hetchy Water

Hetchy Water has capital assets of $177,481, net of accumulated depreciation and amortization, invested in a broad range of utility capital assets as of June 30, 2021 (see Table 3A). This amount represents an increase of $16,699 or 10.4%, primarily due to increases of $11,005 in construction work in progress and Hetchy Hetchy
Water Power 2021 Total
Bay Corridor Project $ — 31,556 31,556 Mountain Tunnel Improvement Project 7,744 9,465 17,209 Transmission Line Clearance Mitigation & Upgrade — 6,176 6,176 Repair & Replacement Life Extension Program 5,188 — 5,188 Moccasin Penstock Rehabilitation and Powerhouse Rewind — 4,374 4,374 Van Ness - Bus Rapid Transit — 2,742 2,742 Moccasin Reservoir Security Fence 2,723 — 2,723 San Joaquin Pipeline Valve & Safe Entry Improvement 2,115 — 2,115 Treasure Island Capital Improvements — 2,025 2,025 Other project additions individually below $2,000 4,816 13,721 18,537 Additions to Construction Work in Progress $ 22,586 70,059 92,645 Holm Powerhouse Rehabilitation & Kirkwood Powerhouse Oil Containment Upgrades $— 21,920 21,920
Electrical Underground Duct Bank 23rd & Illinois South Street — 18,133 18,133 Moccasin Reservoir Security Fence 3,549 — 3,549 Switch Yard Asset — 3,533 3,533
San Joaquin Pipeline Rehabilitation 3,243 — 3,243 San Francisco Academy Solar Carport — 2,657 2,657 Other project additions individually below $2,000 4,911 9,585 14,496 Facilities, Improvements, Intangible Assets, Machinery, and Equipment Placed in Service $ 11,703 55,828 67,531 Table 3B - Hetch Hetchy
Major Additions to Construction Work in Progress and
Facilities, Improvements, Intangible Assets, Machinery, and Equipment Placed in Service Year ended June 30, 2021

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

28 (Continued)

$5,902 in facilities, improvements, machinery, and equipment, offset by a decrease of $208 in amortization of intangible assets.

For the year ended June 30, 2021, Hetchy Water’s major additions to construction work in progress totaled $22,586. Major depreciable facilities, improvements, intangible assets, machinery, and equipment placed in service totaled $11,703 (see Table 3B).

Hetchy Power

Hetchy Power has capital assets of $492,056, net of accumulated depreciation and amortization, invested in utility capital assets as of June 30, 2021 (see Table 3A). This amount represents an increase of $46,627 or 10.5%, primarily due to increases of $40,454 in facilities, improvements, machinery, and equipment and $6,426 in construction work in progress, offset by a decrease of $253 in amortization of intangible assets.

For the year ended June 30, 2021, Hetchy Power’s major additions to construction work in progress totaled $70,059. Major depreciable facilities, improvements, intangible assets, machinery, and equipment placed in service totaled $55,828 (see Table 3B).

CleanPowerSF

CleanPowerSF had no capital assets as of June 30, 2021 and 2020.

See Note 4 for additional information about capital assets.

Capital Assets, Fiscal Year 2020

Hetch Hetchy

Hetch Hetchy has capital assets of $606,211, net of accumulated depreciation and amortization, invested in both water and power utility capital assets as of June 30, 2020 (see Table 3A). This amount represents an increase of $55,580 or 10.1%, resulting from increases of $29,467 in construction work in progress and $26,574 in facilities, improvements, machinery, and equipment, offset by a decrease of $461 in amortization of intangible assets. The investment in capital assets includes land, buildings, improvements, hydropower facilities, dams, transmission lines, machinery, and equipment.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

29 (Continued)

Hetchy Water

Hetchy Water has capital assets of $160,782, net of accumulated depreciation and amortization, invested in a broad range of utility capital assets as of June 30, 2020 (see Table 3A). This amount represents an increase of $11,679 or 7.8%, primarily due to an increase of $25,183 in facilities, improvements, machinery, and equipment, offset by decreases of $13,297 in construction work in progress, and $207 in amortization of intangible assets.

For the year ended June 30, 2020, Hetchy Water’s major additions to construction work in progress totaled $17,669. Major depreciable facilities, improvements, intangible assets, machinery, and equipment placed in service totaled $30,249 (see Table 3C).

Hetchy Power

Hetchy Power has capital assets of $445,429, net of accumulated depreciation and amortization, invested in utility capital assets as of June 30, 2020 (see Table 3A). This amount represents an increase of $43,901 or 10.9%, primarily due to increases of $42,764 in construction work in progress and $1,391 in facilities, improvements, machinery, and equipment; offset by a decrease of $254 in amortization of intangible assets.

Hetchy Hetchy
Water Power 2020 Total
Bay Corridor Project $ —      16,789 16,789
2018 Moccasin Storm 8,966 —      8,966
Power Asset Acquisition Analysis —      8,580 8,580
Van Ness - Bus Rapid Transit —      8,557 8,557
Other Powerhouse Projects —      7,687 7,687
Mountain Tunnel Improvement Project 2,477 3,027 5,504 Warnerville Substation Rehabilitation —      5,067 5,067 Other project additions individually below $5,000 6,226 20,418 26,644 Additions to Construction Work in Progress $ 17,669 70,125 87,794 San Joaquin Pipeline Replacement $ 7,315 —      7,315 Moccasin Creek Downstream Channel Improvements 5,055 —      5,055 Lower Cherry Aqueduct Rehabilitation 4,442 —      4,442 Kirkwood Penstock —      3,668 3,668
Moccasin Spillway Facilities 3,141 —      3,141
Guardrail & Pavement 1,376 1,681 3,057
Intervening Facilities —      2,335 2,335
Early Intake Switchyard Slope Hazard Mitigation —      2,219 2,219 Other project additions individually below $2,000 8,920 6,957 15,877 Facilities, Improvements, Intangible Assets, Machinery, and Equipment Placed in Service $ 30,249 16,860 47,109 Table 3C - Hetch Hetchy
Major Additions to Construction Work in Progress and
Facilities, Improvements, Intangible Assets, Machinery, and Equipment Placed in Service Year ended June 30, 2020

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

30 (Continued)

For the year ended June 30, 2020, Hetchy Power’s major additions to construction work in progress totaled $70,125. Major depreciable facilities, improvements, intangible assets, machinery, and equipment placed in service totaled $16,860 (see Table 3C).

CleanPowerSF

CleanPowerSF had no capital assets as of June 30, 2020 and 2019.

See Note 4 for additional information about capital assets.

Debt Administration

Hetch Hetchy

As of June 30, 2021, Hetch Hetchy has outstanding Certificates of Participation, Clean Renewable Energy Bonds (CREBs), Qualified Energy Conservation Bonds (QECBs), New Clean Renewable Energy Bonds (NCREBs), 2015 Series AB revenue bonds, and commercial paper. The aforementioned debts are obligations of the Power Enterprise. See Hetchy Power section below for more details.

Hetchy Water

Hetchy Water did not have debt outstanding as of June 30, 2021 and 2020. Debt, including bond issuances, associated with the funding of water-related, upcoun try infrastructure capital improvements is issued through the Water Enterprise, and is reflected in the Water Enterprise’s financial statements.

Hetchy Power

As of June 30, 2021 and 2020, Hetchy Power had outstanding debt of $174,414 and $127,171, respectively, as shown in Table 4. More detailed information about the Hetchy Power’s debt activity is presented in Notes 6, 7 and 8 to the financial statements.

CleanPowerSF

CleanPowerSF did not have any debt outstanding as of June 30, 2021 and 2020.

2021 -2020 2020 -2019
2021 2020 2019 Change Change
Clean Renewable Energy Bonds 2008 $ 823 1,231 1,639 (408) (408) Certificates of Participation 2009 Series C 838 1,235 1,619 (397) (384) Certificates of Participation 2009 Series D (BABs) 12,593 12,593 12,593 — — Qualified Energy Conservation Bonds 2011 3,687 4,229 4,765 (542) (536) New Clean Renewable Energy Bonds 2012 — 130 713 (130) (583) New Clean Renewable Energy Bonds 2015 1,779 3,190 3,422 (1,411) (232) 2015 Series A Revenue Bonds 35,297 35,444 35,585 (147) (141) 2015 Series B Revenue Bonds 4,726 5,584 6,422 (858) (838) Commercial Paper 114,671 63,535 50,724 51,136 12,811 Total $ 174,414 127,171 117,482 47,243 9,689 Outstanding Debt, Net of Unamortized Costs
As of June 30, 2021, 2020, and 2019
Table 4 - Hetchy Power

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

31 (Continued)

The increase of $47,243 was mainly due to an increase of $51,136 in commercial paper issuance, offset by $2,402 in principal repayments, $1,272 in return of unspent bond proceeds for 2015 NCREBs, and $219 in amortization of premium and discount.

Credit Ratings and Bond Insurance – The Power Enterprise’s 2015 Series AB Power Revenue Bonds have been rated “AA-” by Fitch Inc and “AA” by Standard and Poor’s (S&P) as of June 30, 2021 and 2020, respectively.

In December 2020, Moody's Investors Service, ("Mood y's") assigned a first-time A2 Issuer Rating to CleanPowerSF, with a stable outlook. Hetch Hetchy Water and Power contains the Power Enterprise as a separate enterprise fund, with CleanPowerSF a compon ent unit of the Power Enterprise. CleanPowerSF is tracked and audited as a standalone fund, with fina ncial statements, including revenues and expenses, separate and discrete from the Power Enterprise. As su ch, CleanPowerSF is deemed to be a separate credit from the Power Enterprise, with its own credit rating.

Debt Service Coverage – Pursuant to the Indenture, the Power Enterprise is required to collect sufficient net revenues each fiscal year, together with any Available Funds (except Bond Reserve Funds) which include unappropriated fund balances and reserves, and cash and book value of investments held by the Treasurer for the Hetchy Power, that the SFPUC reasonably expects would be available, to pay principal and interest becoming due and payable on all outstanding bonds as provided in the Indenture, less any refundable credits, at least equal to 1.25 times annual debt service for said fiscal year. The Series 2015 AB power revenue bonds represent the first series of senior lien revenue bonds of Hetchy Power. Pursuant to Power’s Master Trust Indenture, senior lien debt service coverage excludes debt service on subordinate obligations, such as Hetchy Power’s existing CREBS, NCREBs, and QECBs. Because interest on the Series 2015 AB power revenue bonds was capitalized, Hetchy Power was not obligated to make debt service payments on the Series 2015 AB power revenue bonds until fiscal year 2018. Therefore, Hetchy Power did not calculate and report the Indenture-based debt service coverage ratio prior to fiscal year 2018. During fiscal year 2021, the Power Enterprise’s net revenues, together with fund balances available to pay debt service and not budgeted to be expended, were sufficient to meet the rate covenant requirements under the Power Enterprise’s Indenture (see Note 8).

Debt Authorization – Pursuant to Charter Section 9.107(6), the Power Enterprise can incur indebtedness upon three-fourths vote of the Board of Supervisors, for the purpose of the reconstruction or replacement of existing water facilities and electric power facilities, or combinations thereof, under the jurisdiction of the Public Utilities Commission. Pursuant to Charter Section 9.107(8), the Power Enterprise can issue revenue bonds, without voter approval, upon an affirmative vote of the Board of Supervisors, for the purpose of the acquisition, construction, installation, equipping, improvement, or rehabilitation of equipment or facilities for renewable energy and energy conservation. Pursuant to Proposition A, approved by the San Francisco voters on June 5, 2018, City Charter Section 8B.124 is amended to authorize the Power Enterprise to enter into indebtedness, including revenue bonds, notes, commercial paper or other forms of indebtedness, when authorized by ordinance approved by a two-thirds vote of the Board of Supervisors to reconstruct, replace, expand, repair, improve or construct new power facilities under the jurisdiction of SFPUC or for any other purpose of the Power Enterprise, and in compliance with City Charter Section 8B.124. Proposition A expressly prohibits the SFPUC from issuing bonds to finance the construction of power plants that generate electricity using fossil fuels or nuclear energy. As of June 30, 2021 and 2020, $39,555 of Hetchy Power revenue bonds were issued against existing authorization of $535,699 and $392,728, respectively.

Cost of Debt Capital – The Power Enterprise’s outstanding long-term senior lien debt consists of the 2015 Series AB Power Revenue Bonds issued in May 2015, wh ich are the first series of bonds issued under the Master Indenture and are senior in lien to all the other Enterprise’s outstanding debt obligations. Coupon

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

32 (Continued)

interest rates range from 3.0% to 5.0%. The Power Enterprise has previously issued and incurred debt service on Tax Credit Bonds and certificates of participation, which constitute subordinate obligations.

Interest rates on the Tax Credit Bonds, which include QECBs and NCREBs, ranging from 1.2% to 1.5% (net of the federal tax subsidy). Certificates of participation carried interest rates ranging from 2.0% to 6.5%. The Power Enterprise’s short-term debt issued under its commercial paper program has interest rates ranging from 0.1% to 0.2% and 0.2% to 4.0% during fiscal years 2021 and 2020, respectively.

Rates and Charges

Hetchy Water

Hetchy Water charges for services relates to the storage and delivery of water. Assessment fees from the Water Enterprise, which cover the water-related upcountry costs, were $44,149 and $34,585 for the years ended June 30, 2021 and 2020, respectively. In fiscal year 2022, the assessment fees will be $45,815, an increase of $1,666 or 3.8% as reflected in the fiscal year 2022 adopted budget.

Hetchy Power

Municipal Rates

Hetchy Power charges for services relates to power generation and electricity delivery to contractual and municipal customers. For municipal power services, cu stomers are typically charged a General Use rate or Enterprise rate. Enterprise rates are charged based on projected PG&E equivalent rates by customer class.

General fund department customers are mostly charged a General Use rate, a rate that is currently below cost of service. These General Use rates, however, are moving closer towards cost of service and increasing by $0.01 per kWh on an annual basis beginning July 1, 2020. The General Use rates have been adopted every two years.

On May 10, 2020, the Commission adopted two years of General Use rates effective July 1, 2020 through June 30, 2022. The adopted General Use rate for fiscal years 2021 and 2022 are $0.08877/kWh and $0.09877/kWh, respectively. The Power Enterprise continues to develop rates under the cost of service analysis model and has started work on the next powe r rate study which is projected to be completed in 2022.

Retail Rates

The Commission approved a new schedule of retail electric rates, fees, and charges for residential, commercial, and industrial customers where Hetch Hetc hy has been designated as the power provider for retail customers to be applied to meter readings on or after July 1, 2016. Total bundled service charges for residential service rates and low-income residential service rates are calculated using the total rates, monthly, based on monthly meter reading, plus any applicable taxes.

To date, Hetchy Power has prepared service standards, developed system plans and specifications, acquired materials and equipment, and initiated construction of primary distribution facilities.

Pursuant to City and County of San Francisco Charter Section 8B.125, an independent rate study is performed at least once every five years. The rate study is undertaken to examine future revenue requirements and cost-of-service of the Power Enterprise. In fall 2015, SFPUC engaged a consultant to perform a cost-of-service study. The informed rate se tting from this study resulted in recommendation and approval by the Commission in the spring 2016 for rates to be effective July 1, 2016. Work is underway on

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

33 the next power rate study which is projected to be completed in 2022 and provide power rates effective for fiscal year 2023. The SFPUC Rates Schedules and Fees is available at https://sfpuc.org/accounts- services/water-power-and-sewer-rates.

CleanPowerSF

CleanPowerSF began offering services in May 2016, gi ving residential and commercial electricity consumers in San Francisco a choice of having their electricity supplied from clean renewable sources, such as solar and wind, at competitive rates. CleanPowerSF offers two products: a “Green” product comprised of at least 48% renewable energy and a “SuperGreen” product comprised of 100% renewable energy. Most customers take service under the “Green” product rates and remaining customers have opted to upgrade to “ S u p e r G r e e n ” p r o d u c t r a t e s . O n M a y 2 5 , 2 0 2 1 , C o m m i s s i o n a p p r o v e d a C l e a n P o w e r S F r a t e a d j u s t m e n t formula. Through Resolution 21-0085 CleanPowerSF rate s will be formulaically adjusted, when PG&E rates change to the lesser of no more than 5% higher than PG&E generation rates or rates that recover program costs. The CleanPowerSF Rates Schedules are av ailable at http://clean powersf.org/residential for residential customers and http://cleanpowersf.org/commercial for commercial customers.

CleanPowerSF revenues are adequate to support its own operations; the SFPUC intends that these rates be sufficient to pay for impending projects, and be financially independent from Hetch Hetchy in the future.

CleanPowerSF is subject to Section 8B.125 of the City Charter, which requires an independent rate study be performed at least once every five years, and the Commission sets rates and charges for the program.

CleanPowerSF rates will be included in the next powe r rate study which is projected to be completed in 2022.

Request for Information

This report is designed to provide our citizens, customers, investors, and creditors with an overview of Hetch Hetchy’s finances and to demonstrate Hetch Hetchy’s respective accountability for the money it receives.

Questions regarding any of the information provided in this report or requests for additional information should be addressed to San Francisco Public Utilities Commission, Chief Financial Officer, 525 Golden Gate Avenue, 13th Floor, San Francisco, CA 94102.

This report is available at https://sfpuc.org/about-us/reports/audited-financial-statements-reports.

34 *Included interfund loan receivable and loan payable of $1,800 for fiscal year ended 2020 between Hetchy Power and CleanPowerSF.

See accompanying notes to financial statements.

Hetchy Hetchy 2021 Hetchy Hetchy 2020
Water Power Total Water Power Total
Assets
Current assets:

Cash and investments with City Treasury $ 89,373 190,719 90,838 370,930 79,172 191,687 84,192 — 355,051 Cash and investments outside City Treasury 1 611 — 612 1 1 — — 2 Receivables:

Charges for services (net of allowance for doubtful accounts from 442 19,024 28,265 47,731 29 2,967 34,712 — 37,708 Due from other City departments, current portion — 7,413 — 7,413 104 2,874 — (1,800) 1,178 Due from other governments 579 267 — 846 2,575 1,644 — — 4,219 Interest 21 125 55 201 183 580 215 — 978
Restricted interest and other receivables — 11,800 — 11,800 24 168 — — 192 Total current receivables 1,042 38,629 28,320 67,991 2,915 8,233 34,927 (1,800) 44,275 Prepaid charges, advances, and other receivables, current portion 402 2,666 2,184 5,252 512 2,247 2,760 — 5,519 Inventory 191 1,820 — 2,011 187 1,609 — — 1,796 Restricted cash and investments outside City Treasury, current portion — 153 — 153 — 151 — — 151 Total current assets 91,009 234,598 121,342 446,949 82,787 203,928 121,879 (1,800) 406,794 Non-current assets:

Restricted cash and investments with City Treasury 6,990 5,241 — 12,231 9,768 8,060 — — 17,828 Restricted cash and investments outside City Treasury, less current portion — 3,690 — 3,690 — 3,795 — — 3,795 Capital assets, not being depreciated and amortized 38,571 174,555 — 213,126 27,566 168,129 — — 195,695 Capital assets, net of accumulated depreciation and amortization 138,910 317,501 — 456,411 133,216 277,300 — — 410,516 Prepaid charges, advances, and other receivables, less current portion 152 753 — 905 156 767 — — 923 Due from other City departments, less current portion — 4,993 — 4,993 — 12,295 — — 12,295 Total non-current assets 184,623 506,733 — 691,356 170,706 470,346 — — 641,052 Total assets 275,632 741,331 121,342 1,138,305 253,493 674,274 121,879 (1,800) 1,047,846 Deferred outflows of resources:

Pensions 7,799 9,531 803 18,133 7,950 9,716 572 — 18,238 Other post-employment benefits 3,725 4,552 442 8,719 2,332 2,850 270 — 5,452 Total deferred outflows of resources 11,524 14,083 1,245 26,852 10,282 12,566 842 — 23,690 Liabilities
Current liabilities:

Accounts payable 4,262 22,909 15,859 43,030 958 14,185 21,906 — 37,049 Accrued payroll 1,042 2,596 291 3,929 888 2,298 200 — 3,386 Accrued vacation and sick leave, current portion 1,059 1,777 205 3,041 911 1,596 175 — 2,682 Accrued workers’ compensation, current portion 197 378 — 575 201 384 — — 585 Damage claims liability, current portion 218 409 6 633 274 705 53 — 1,032 Due to other City departments, current portion — 369 — 369 240 231 1,809 (1,800) 480 Unearned revenues, refunds, and other, current portion 22 5,141 1,028 6,191 18 4,852 848 — 5,718 Bond and loan interest payable — 459 — 459 — 508 — — 508 Bonds, current portion — 1,928 — 1,928 — 2,115 — — 2,115 Certificates of participation, current portion — 405 — 405 — 384 — — 384 Commercial paper — 114,671 — 114,671 — 63,535 — — 63,535 Current liabilities payable from restricted assets 9,057 15,393 — 24,450 3,279 8,459 — — 11,738 Total current liabilities 15,857 166,435 17,389 199,681 6,769 99,252 24,991 (1,800) 129,212 Long-term liabilities:

Other post-employment benefits obligations 14,444 17,653 2,909 35,006 16,350 19,983 2,197 — 38,530 Net pension liability 26,645 32,566 3,008 62,219 21,477 26,249 1,805 — 49,531 Accrued vacation and sick leave, less current portion 1,126 1,840 195 3,161 735 1,361 116 — 2,212 Accrued workers’ compensation, less current portion 923 1,740 — 2,663 986 1,816 — — 2,802 Damage claims liability, less current portion 307 699 — 1,006 284 1,517 53 — 1,854 Due to other City departments, less current portion — — — — — 369 — — 369 Bonds, less current portion — 44,384 — 44,384 — 47,693 — — 47,693 Unearned revenues, refunds, and other, less current portion 116 852 9,000 9,968 609 2,790 — — 3,399 Certificates of participation, less current portion — 13,026 — 13,026 — 13,444 — — 13,444 Total long-term liabilities 43,561 112,760 15,112 171,433 40,441 115,222 4,171 — 159,834 Total liabilities 59,418 279,195 32,501 371,114 47,210 214,474 29,162 (1,800) 289,046 Deferred inflows of resources:

Related to pensions 988 1,207 1,093 3,288 4,335 5,298 1,210 — 10,843 Other post-employment benefits 2,085 2,548 1,913 6,546 1,195 1,461 1,211 — 3,867 Total deferred inflows of resources 3,073 3,755 3,006 9,834 5,530 6,759 2,421 — 14,710 Net position:

Net investment in capital assets 177,481 323,066 — 500,547 160,782 322,204 — — 482,986 Restricted for debt service — 99 — 99 — 142 — — 142 Restricted for capital projects — — — — 6,513 — — — 6,513 Unrestricted 47,184 149,299 87,080 283,563 43,740 143,261 91,138 — 278,139 Total net position $ 224,665 472,464 87,080 784,209 211,035 465,607 91,138 — 767,780 Hetchy Power of $1,258 and CleanPowerSF of $5,485 as of June 30, 2021; and Hetchy Power of $591 and CleanPowerSF of $1,810 as of June 30, 2020)

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Statements of Net Position
June 30, 2021 and 2020
(In thousands)
CleanPowerSF CleanPowerSF Elimination*

35 See accompanying notes to financial statements.

Hetchy Hetchy 2021 Hetchy Hetchy 2020
Water Power Total Water Power Total
Operating revenues:

Charges for services $ 46,979 136,247 207,698 390,924 34,797 140,680 245,460 420,937 Rents and concessions 111 136 — 247 156 191 — 347 Total operating revenues 47,090 136,383 207,698 391,171 34,953 140,871 245,460 421,284 Operating expenses:

Personnel services 19,871 40,756 7,641 68,268 16,304 40,712 7,920 64,936 Contractual services 2,415 8,726 7,028 18,169 1,642 7,742 7,557 16,941 Transmission/distribution and other power costs — 36,711 1,012 37,723 — 41,405 220 41,625 Purchased electricity — 5,982 189,977 195,959 — 7,426 174,550 181,976 Materials and supplies 1,272 1,990 26 3,288 1,337 2,260 57 3,654 Depreciation and amortization 6,009 15,627 — 21,636 5,276 15,723 — 20,999 Services provided by other departments 2,517 6,137 3,928 12,582 1,853 6,426 2,728 11,007 General and administrative and other 18,433 29,709 3,104 51,246 18,461 26,433 2,994 47,88 8 Total operating expenses 50,517 145,638 212,716 408,871 44,873 148,127 196,026 389,026 Operating income (loss) (3,427) (9,255) (5,018) (17,700) (9,920) (7,256) 49,434 32,258 Non-operating revenues (expenses):

Federal and state grants 1,349 1,483 — 2,832 2,859 1,885 — 4,744 Interest and investment (loss) income (232) 24 51 (157) 1,932 5,746 1,771 9,449 Interest expenses — (1,970) (18) (1,988) — (2,740) (69) (2,809) Amortization of premium and discount — 219 — 219 — 228 — 228 Net gain from sale of assets — — — — 4 5 — 9
Other non-operating revenues 3 17,790 927 18,720 998 23,116 1 24,115 Other non-operating expenses (63) (902) — (965) (11) (1,060) — (1,071) Net non-operating revenues 1,057 16,644 960 18,661 5,782 27,180 1,703 34,665 Change in net position before transfers (2,370) 7,389 (4,058) 961 (4,138) 19,924 51,137 66,923 Transfers from the City and County of San Francisco 16,000 — — 16,000 14,000 — — 14,000 Transfers to the City and County of San Francisco — (532) — (532) — (32) — (32) Net transfers 16,000 (532) — 15,468 14,000 (32) — 13,968 Change in net position 13,630 6,857 (4,058) 16,429 9,862 19,892 51,137 80,891 Net position at beginning of year 211,035 465,607 91,138 767,780 201,173 445,715 40,001 686,889 Net position at end of year $ 224,665 472,464 87,080 784,209 211,035 465,607 91,138 767,780

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Statements of Revenues, Expenses, and Changes in Net Position Years ended June 30, 2021 and 2020
(In thousands)
CleanPowerSF CleanPowerSF

36 (Continued)

Hetchy Hetchy 2021 Hetchy Hetchy 2020
Water Power Total Water Power Total
Cash flows from operating activities:

Cash received from customers, including cash deposits $ 46,176 120,981 223,325 390,482 34,843 142,063 245,843 422,749 Cash received from tenants for rent 116 142 — 258 127 157 — 284 Cash paid to employees for services (19,597) (40,236) (5,344) (65,177) (15,959) (39,924) (4,401) (60,284) Cash paid to suppliers for goods and services (20,967) (81,743) (212,085) (314,795) (21,185) (77,267) (184,310) (282,762) Cash paid for judgments and claims (563) (4,361) (153) (5,077) (343) (1,572) (208) (2,123) Net cash provided by (used in) operating activities 5,165 (5,217) 5,743 5,691 (2,517) 23,457 56,924 77,864 Cash flows from non-capital and related financing activities:

Cash received from grants 3,345 2,860 — 6,205 3,195 842 — 4,037 Ca
sh received for license fees — 3,151 — 3,151 — 5,712 — 5,712 Cash received from miscellaneous revenues 3 13,427 927 14,357 998 16,252 1 17,251 Cash received from settlements — 797 — 797 — — — — Cash paid for rebates, program incentives, and other (63) (902) — (965) (11) (1,060) — (1,071) Cash paid for Hetchy Power loan interest — — (235) (235) — — — — Transfers from the City and County of San Francisco 16,000 — — 16,000 14,000 — — 14,000 Transfers to the City and County of San Francisco — (532) — ( 532) — (32) — (32) Net cash provided by non-capital financing activities 19,285 18,801 692 38,778 18,182 21,714 1 39,897 Cash flows from capital and related financing activities:

Acquisition and construction of capital assets (16,981) (62,461) — (79,442) (19,075) (66,390) — (85,465) Proceeds from sale of capital assets — — — — 4 5 — 9 Principal payments on long-term debt — (3,674) — (3,674) — (2,894) — (2,894) Proceeds from commercial paper borrowings — 51,136 — 51,136 — 12,811 — 12,811 Interest paid on long-term debt — (2,970) — (2,970) — (3,096) — (3,096) Interest paid on commercial paper borrowings — (132) — (132) — (805) — (805) Federal interest income subsidy — 511 — 511 — 467 — 467 Net cash used in capital and related financing activities (16,981) (17,590) — (34,571) (19,071) (59,902) — (78,973) Cash flows from investing activities:

Interest Income 739 1,986 802 3,527 1,816 5,847 1,187 8,850 Proceeds from sale of investments outside City Treasury — 3,968 — 3,968 — 5,028 — 5,028 Purchases of investments outside City Treasury — (3,968) — (3,968) — (5,028) — (5,028) Net cash provided by investing activities 739 1,986 802 3,527 1,816 5, 847 1,187 8,850 Increase (decrease) in cash and cash equivalents 8,208 (2,020) 7,237 13,425 (1,590) (8,884) 58,112 47,638 Cash and cash equivalents:

Beginning of year 88,068 202,285 83,527 373,880 89,658 211,169 25,415 326,242 End of year $ 96,276 200,265 90,764 387,305 88,068 202,285 83,527 373,880 Reconciliation of cash and cash equivalents to the statements of net position:

Cash and investments with City Treasury:

Unrestricted $ 89,373 190,719 90,838 370,930 79,172 191,687 84,192 355,051 Restricted 6,990 5,241 — 12,231 9,768 8,060 — 17,828 Less: Unrealized gain on investments (88) (149) (74) (311) (873) (1,40 9) (665) (2,947) Cash and investments outside City Treasury:

Unrestricted 1 611 — 612 1 1 — 2
Restricted — 3,843 — 3,843 — 3,946 — 3,946 Cash and cash equivalents at end of year on statements of cash flows $ 96,276 200,265 90,764 387,305 88,068 202,285 83,527 373,880

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Statements of Cash Flows
Years ended June 30, 2021 and 2020
(In thousands)
CleanPowerSF CleanPowerSF

37 See accompanying notes to financial statements.

Hetchy Hetchy 2021 Hetchy Hetchy 2020
Water Power Total Water Power Total
Reconciliation of operating income (loss) to net cash provided by (used in) operating activities:

Operating income (loss) $ (3,427) (9,255) (5,018) (17,700) (9,920) (7,256) 49,434 32,258 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization 6,009 15,627 — 21,636 5,276 15,723 — 20,999 Provision for uncollectible accounts — 667 3,675 4,342 — 572 1,225 1,797 Write-off of capital assets 51 8,333 — 8,384 1,062 11,175 — 12,237 Changes in operating assets and liabilities:

Receivables:

Charges for services (413) (16,724) 2,772 (14,365) 50 2,265 (1,148) 1,167 Prepaid charges, advances, and other 114 (12,172) 576 (11,482) (46) 1,994 (216) 1,732 Due from other City departments 104 2,437 — 2,541 (104) (1,627) — (1,731) Inventory (4) (211) — (215) 11 (192) — (181)
Accounts payable 3,304 8,724 (6,047) 5,981 358 65 5,696 6,119 Accrued payroll 154 298 91 543 243 494 41 778
Other post-employment benefits obligations (2,409) (2,945) 1,242 (4,112) (277) (337) 1,889 1,275 Pension obligations 1,972 2,411 855 5,238 45 56 1,509 1,610 Accrued vacation and sick leave 539 660 109 1,308 258 314 80 652 Accrued workers’ compensation (67) (82) — (149) (51) (61) — (112) Damage claims liability (33) (1,114) (100) (1,247) 334 169 99 602 Due to other City departments (240) (231) (1,592) (2,063) 240 250 (1,991) (1,501) Unearned revenues, refunds, and other liabilities (489) (1,640) 9,180 7,051 4 (147) 306 163 Total adjustments 8,592 4,038 10,761 23,391 7,403 30,713 7,490 45,606 Net cash provided by (used in) operating activities $ 5,165 (5,217) 5,743 5,691 (2,517) 23,457 56,924 77,864 Noncash transactions:

Accrued capital asset costs $ 9,057 15,393 — 24,450 3,279 8,459 — 11,738 Payables to Hetchy Power — — — — — — 1,800 1,800 Receivables from CleanPowerSF — — — — — 1,800 — 1,800 Receivables from Wastewater — 739 — 739 — 847 — 847 Unrealized gain on investments (88) (149) (74) (311) (873) (1,409) (665) (2,947) CleanPowerSFCleanPowerSF

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Statements of Cash Flows
Years ended June 30, 2021 and 2020
(In thousands)

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

38 (Continued)

(1) Description of Reporting Entity

San Francisco Hetch Hetchy Water and Power (Hetch Hetchy or the Enterprise) was established as a result of the Raker Act of 1913, which granted water and power resources rights-of-way on the Tuolumne River in Yosemite National Park and Stanislaus National Forest to the City and County of San Francisco (the City). CleanPowerSF, launched in May 2016, provides green electricity from renewable sources to residential and commercial customers in San Francisco and was reported as part of Hetch Hetchy starting fiscal year 2016. He tch Hetchy is a stand-alone enterprise comprised of three funds, Hetchy Power (the Power Enterprise), CleanPowerSF and Hetchy Water, the portion of the Water Enterprise’s operations, specifically the upcountry water supply and transmission service.

Hetch Hetchy accounts for the activities of Hetch Hetchy Water and Power and is engaged in the collection and conveyance of appr oximately 85% of the regional sy stem’s water supply and in the generation and transmission of electricity from that resource, as well as the City Power services including energy efficiency and renewable.

Approximately 81% of the electricity generated by Hetchy Power is used to provide electric service to the City’s municipal customers (including the San Francisco Municipal Transportation Agency, Recreation and Parks Department, the Port of San Francisco, the San Francisco International Airport and its tenants, Zuckerberg San Francisco General Hospital and Trauma Center, streetlights, Moscone Convention Center, and the Water and Wastewater Enterprises). The majority of the remaining 19% balance of electricity is sold to CleanPowerSF and the wholesale electric market. As a result of the 1913 Raker Act, energy produced above the City’s Municipal Load is sold first to the Districts to cover their agricultural pumping and municipal load needs and any remaining energy is either sold to other m u n i c i p a l i t i e s a n d / o r g o v e r n m e n t a g e n c i e s ( n o t f o r r e s a l e ) o r s o l d i n t o t h e C A I S O . H e t c h H e t c h y operation is an integrated system of reservoirs, hydroelectric power plants, aqueducts, pipelines, and transmission lines.

Hetch Hetchy also purchases wholesale electric power from various energy providers that are used in conjunction with owned hydro resources to meet the power requirements of its customers. Operations and business decisions can be greatly influenced by market conditions, state and federal power matters before the California Public Utilities Commission (CPUC), the CAISO, and the Federal Energy Regulatory Commission (FERC). Therefore, Hetch Hetchy serves as the City’s representative at CPUC, CAISO, and FERC forums and continues to monitor regulatory proceedings.

Until August 1, 2008, the San Francisco Public Utilities Commission (SFPUC) consisted of five members, all appointed by the Mayor. Proposition E, a City and County of San Francisco Charter amendment approved by the voters in the June 3, 2008 election, terminated the terms of all five existing members of the SFPUC, changed the process for appointing new members, and set qualifications for all members. Under the amen ded Charter, the Mayor continues to nominate candidates to the SFPUC, but nominees do not take office until the Board of Supervisors votes to approve their appointments by a majority (at least six members). The amended Charter provides for staggered four-year terms for SFPUC members and requires them to meet the following qualifications:

 Seat 1 must have experience in environmental policy and an understanding of environmental justice issues.
 Seat 2 must have experience in ratepayer or consumer advocacy.  Seat 3 must have experience in project finance.
 Seat 4 must have expertise in water systems, power systems, or public utility management.  Seat 5 is an at-large member.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

39 (Continued)

The SFPUC is a department of the City, and as such, the financial operations of Hetch Hetchy, Wastewater, and the Water Enterprises are included in the Annual Comprehensive Financial Report of the City as enterprise funds. These financial stat ements are intended to present only the financial position, and the changes in financial position and cash flows of only that portion of the City that is attributable to the transactions of Hetch Hetchy. They do not purport to, and do not, present fairly the financial position of the City as of June 30, 2021 and 2020, and the changes in its financial position, or, where applicable, the cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles (GAAP).

(2) Significant Accounting Policies

(a) Basis of Accounting and Measurement Focus
The accounts of Hetch Hetchy are organized on the basis of proprietary fund types and are included as enterprise funds of the City. The activities of Hetch Hetchy and each fund are accounted for with a separate set of self-balancing accounts that comprise Hetch Hetchy’s and each fund’s assets, deferred outflows, liabilitie s, deferred inflows, ne t position, revenues, and expenses. Enterprise funds account for activities (i) that are financed with debt that is secured solely by a pledge of the net revenues from fees and charges of the activity; or (ii) that are required by laws or regulations that the activity ’s costs of providing services, including capital costs (such as depreciation or de bt service), be recovered with fees and charges, rather than with taxes or similar revenues; or (iii) that the pr icing policies of the activity establish fees and charges designed to recover its costs, includin g capital costs (such as depreciation or debt service).

The financial activities of Hetch Hetchy are accounted for on a flow of economic resources measurement focus, using the accrual basis of a ccounting in accordance with U.S. GAAP. Under this method, all assets and liabilities associated with operations are included on the Statements of Net Position, revenues are recognized when earned, and expenses are recognized when liabilities are incurred. Operat ing revenues are defined as ch arges to customers and rental income.

Hetch Hetchy applies all applicable Govern mental Accounting Standards Board (GASB) pronouncements.

(b) Cash and Cash Equivalents
Hetch Hetchy considers its pooled deposits and investments held with the City Treasury to be demand deposits and, therefore, cash and cash equivalents for financial reporting. The City Treasury also holds non-pooled cash and invest ments for the Enterprise. Non-pooled restricted deposits and restricted deposits and investments held outside the City Treasury with original maturities of three months or less are considered to be cash equivalents.

(c) Investments
Money market funds are carried at cost, which approximates fair value. All other investments are stated at fair value based upon quoted market prices. Changes in fair value are recognized as investment gains or losses and are recorded as a component of non-operating revenues.

(d) Inventory
Inventory consists primarily of construction materials and maintenanc e supplies and is valued at average cost. Inventory is expensed as it is consumed.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

40 (Continued)

(e) Capital Assets
Capital assets are defined as assets with an in itial individual cost of more than $5 and an estimated useful life in excess of one year. Capital assets with an original acquisition date prior to July 1, 1977 are recorded in the financial statements at estimated cost, as determined by an independent professional appraisal, or at cost, if known. All subs equent acquisitions have been recorded at cost. All donated capital assets are valued at estimated fair value at the time of donation. Depreciation and amortization are comp uted using the straight-line method over the estimated useful lives of the related assets, which range from 1 to 100 years for equipment and 1 to 200 years for buildings, structures, and improvements. No depreciation or amortization is recorded in the year of acquisition, and depreciati on or amortization is recorded in the year of disposal.

(f) Intangible Assets
Under GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets, intangible assets are defined as identifiable, non-financial assets capable of being separated, sold, transferred, or licensed, and include contra ctual or legal rights. Examples of intangible assets include rights-of-way easements, land use rights, water rights, licenses, and permits. The accounting pronouncement also provides guidance on the capitalization of internally generated intangible assets, such as the development and installation of computer software by or on behalf of the reporting entity.

According to the standard, Hetch Hetchy is required to capitalize intangible assets with a useful life extending beyond one reporting period. He tch Hetchy has established a capitalization threshold of $100. GASB Statement No. 51 also requires amortization of intangible assets over the benefit period, except for certain assets having an indefinite useful life. Assets with an indefinite useful life generally provide a benefit that is not constrained by legal or contractual limitations or any other external factor and, therefore, are not amortized (see Note 4).

(g) Construction Work in Progress
The cost of acquisition and construction of major plant and equipment is recorded as construction work in progress. Costs of construction projects that are discontinued are recorded as expenses in the year in which the decision is made to discontinue such projects.

(h) Capitalization of Interest
A portion of the interest cost incurred on capital projects is capitalized on assets that require a period of time for construction or to otherw ise prepare them for their intended use. Such amounts are amortized over the useful lives of the assets (see Note 4).

(i) Bond Discount, Premium, and Issuance Costs
Bond issuance costs related to prepaid insurance costs are capitalized and amortized using the effective interest method. Other bond issuance costs are expensed when incurred. Original issue bond discount or premium are offset ag ainst the related debt and are also amortized using the effective interest method.

(j) Accrued Vacation and Sick Leave
Accrued vacation pay, which may be accumulated up to 10 weeks per employee, is charged to expense as earned. Sick leave earned subsequent to December 6, 1978 is non-vesting and may be accumulated up to six months per employee.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

41 (Continued)

(k) Workers’ Compensation
The Enterprise is self-insured for workers’ compensation claims and accrues the estimated cost of those claims, including the estimated cost of incurred but not reported claims (see Note 12(b)).

(l) General Liability
The Enterprise is self-insured for general li ability and uninsurable property damage claims.

Commercially uninsurable property includes assets that are underground or provide transmission and distribution. Maintained commercial coverage does not cover claims attributed to loss from earthquake, contaminat ion, pollution remediat ion efforts, and other specific naturally occurring contam inants such as mold. The liability represents an estimate of the cost of all outstanding claims, including adverse loss development and estimated incurred but not reported claims (see Note 12(a)).

(m) Arbitrage Rebate Payable
Certain bonds are subject to arbitrage rebate requirements in accordance with regulations issued by the U.S. Treasury Department. The requirements of the Clean Renewable Energy Bonds (CREBs), the Qualified Energy Conservation Bonds (QECBs), and the New Clean Renewable Energy Bonds (NCREBs) stipulate that the first payment of excess investment earnings, if any, is required to be rebated to the federal government, no later than 60 days after the end of the fifth bond year of the agreement. Hetch Hetchy did not have any arbitrage liability as of June 30, 2021 and 2020.

(n) Income Taxes
As a department of a government agency, the Enterprise is exempt from both federal income taxes and California State franchise taxes.

(o) Revenue Recognition
Water and power revenues are based on wate r and power consumption and billing rates.

Generally, customers are billed monthly. Revenues earned but unbilled are accrued as charges for services receivables on the Statements of Net Position. The unbilled amounts for the fiscal years ending June 30, 2021 and 2020 are as follows:

(p) Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses duri ng the reporting period. Actual results could differ from those estimates.

Hetchy Hetchy
Water Power CleanPowerSF Total
2021 $ — 13,823 12,600 26,423
2020 — 350 15,730 16,080

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

42 (Continued)

(q) Eliminations
Eliminations for internal activities between the Hetchy Power and CleanPowerSF are made in the Statements of Net Position. There were activities requiring eliminations during the fiscal year ended June 30, 2020. There were no activities requiring eliminations for fiscal year ended June 30, 2021.

(r) Accounting and Financial Reporting for Pollution Remediation Obligations According to GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations , a government would have to estimate its expected outlays for pollution remediation if it knows a site is pollute d and any of the following recognition triggers occur:
 Pollution poses an imminent danger to the public or environment and a government has little or no discretion to avoid fixing the problem;
 A government has violated a pollution prevention-related permit or license;  A regulator has identified (or evidence indicate s it will identify) a government as responsible (or potentially responsible) for cleaning up pollution, or for paying all or some of the cost of the cleanup;
 A government is named (or evidence indicates that it will be named) in a lawsuit to compel it to address the pollution; or
 A government begins or legally obligates itself to begin cleanup or post-cleanup activities (limited to amounts the government is legally required to complete).

As a part of ongoing operations, situations may occur requiring the removal of pollution or other hazardous material. These situations typically arise in the process of acquiring an asset, preparing an asset for its intended use, or during the Design Phase of projects under review by the project managers. Other times, pollution may arise during the implementation and construction of a major or minor capital project. Examples of pollution may include, but are not limited to, asbestos or lead paint removal; leaking of sewage in underground pipes or neighboring areas; chemical spills; removal and disposal of known toxic waste; harmful biological and chemical pollution of water; or contamination of surrounding soils by underground storage tanks (see Note 13(d)).

(s) Other Post-employment Benefits (OPEB)
As prescribed under GASB Statement No. 75, Accounting and Financial Reporting for Post- employment Benefits Other than Pensions , net OPEB liability, deferred outflows/inflows of resources related to OPEB, and OPEB expense are actuarially determined on a citywide basis.

Net OPEB liability is measured as the portion of the present value of projected benefit payments to be provided to current active and inactive employees attributed to those employees’ past service, less the amount of the Retiree Healthcare Trust Fund investments measured at fair value.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

43 (Continued)

(t) New Accounting Standards Adopted in Fiscal Year 2021 1) In January 2017, the GASB issued Statement No. 84, Fiduciary Activities. GASB Statement No. 84 establishes criteria for state and local governments to identify fiduciary activities and how those activities should be reported. The new standard is effective for periods beginning after December 15, 2019. The Enterprise adopted the provisions of this Statement in fiscal year 2021, which did not have a significant effect on its financial statements.

2) In August 2018, the GASB issued Statement No. 90, Accounting and Financial Reporting for Majority Equity Interests. GASB Statement No. 90 provides clarification when a government s h o u l d r e p o r t a m a j o r i t y e q u i t y i n t e r e s t i n a l e g a l l y s e p a r a t e o r g a n i z a t i o n a s e i t h e r a component unit or an investment. The new stan dard is effective for periods beginning after December 15, 2019. The Enterprise adopted the provisions of this Statement in fiscal year 2021, which did not have a significant effect on its financial statements.

3) In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. GASB Statement No. 97 clarifies rules related to reporting of fiduciary activities under Statements No. 14 and No. 84 and enhances the accounting and financial reporting of IRS Code section 457 plans that meet the definition of a pension plan. The new standard is effective for periods beginning after June 15, 2021.

The Enterprise adopted early the provisions of this Statement in fiscal year 2021, which did not have a significant effect on its financial statements.

4) In October 2021, the GASB issued Statement No. 98, The Annual Comprehensive Financial Report. GASB Statement No. 98 updates existing accounting standards by changing the name of the Comprehensive Annual Financial Report to the Annual Comprehensive Financial Report. The new standard is effective for periods ending after December 15, 2021. The Enterprise adopted the provisions of this Statement in fiscal year 2021, which did not have a significant effect on its financial statements.

(u) GASB Statements Implemented in Fiscal Year 2020
In May 2020, the GASB issued Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this St atement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective da tes of certain provisio ns in Statements and Implementation Guides that first became effective or are scheduled to become effective for periods beginning after June 15, 2018. The Enterp rise adopted the provisions of this Statement in fiscal year 2020.

(v) Future Implementation of New Accounting Standards
1) In June 2017, the GASB issued Statement No. 87, Leases. GASB Statement No. 87 establishes a single model for lease accounting and requires reporting of certain lease liabilities that currently are not reported. The new standard is effective for periods beginning after June 15, 2021. The Enterprise will implement the provisions of Statement No. 87 in fiscal year 2022.

2) In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period . GASB Statement No. 89 establishes accounting

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

44 (Continued)

requirements for interest cost incurred before the end of a construction period. The new standard is effective for periods beginning after December 15, 2020. The Enterprise will implement the provisions of Statement No. 89 in fiscal year 2022.

3) In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations . GASB Statement No. 91 enhances the compatibility and consistency of conduit debt obligation reporting and reporting of related transactions by State and local government issuers. The new standard is effective for periods beginning after December 15, 2021. The Enterprise will implement the provisions of Statement No. 91 in fiscal year 2023.

4) In January 2020, the GASB issued Statement No. 92, Omnibus 2020. GASB Statement No. 92 addresses practice issues that have been identified during implementation and application of certain GASB Statements. The new standard is effective for periods beginning after June 15, 2021. The Enterprise will implement the provisions of Statement No. 92 in fiscal year 2022.

5) In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates (IBOR). The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. The new standard is effective for periods beginning after June 15, 2021. The Enterprise will implement the provisions of Statement No. 93 in fiscal year 2022.

6) In March 2020, the GASB Issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements . The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). The new standard is effective for periods beginning after June 15, 2022. The Enterprise will implement the provisions of Statement No. 94 in fiscal year 2023.

7) In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements . This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) by a government. The new standard is effective for periods beginning after June 15, 2022. The Enterprise will implement the provisions of Statement No. 96 in fiscal year 2023.

(3) Cash, Cash Equivalents, and Investments

Hetch Hetchy’s cash, cash equivalents, and investme nts with the City Treasury are invested in an unrated City pool pursuant to investment policy guidelines established by the City Treasurer. The objectives of the policy guidelines are, in order of priority, preservation of capital, liquidity, and yield.

The policy addresses soundness of financial institutio ns in which the City will deposit funds, types of investment instruments as permitted by the California Government Code, and the percentage of the portfolio, which may be invested in certain instruments with longer terms to maturity. The City Treasurer allocates income from the investment of pooled cash at month-end in proportion to Hetch Hetchy’s average daily cash balances. The primary objectives of Hetch Hetchy’s investment policy are consistent with the City’s policy.

Restricted assets are held by an independent trustee outside the City’s investment pool. The assets are held for the purpose of paying future interest and principal on the bonds and for eligible capital project expenditures. The balances as of June 30, 2021 and 2020 were $3,843 and $3,946, respectively. The Enterprise held all investments in guaranteed investment contracts, treasury and

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

45 (Continued)

government obligations, commercial paper, corpor ate bonds, and notes, as well as money market mutual funds consisting of treasury and government obligations. The balance as of June 30, 2021 included 2015 Series A bonds proceeds of $2,193, certificates of participation proceeds of $1,115, $612 held at a commercial bank in a non-interest-bearing checking account that is covered by depository insurance, 2015 Series B bonds proceeds of $516, and commercial paper of $19. The balance as of June 30, 2020 included 2015 Series A bonds proceeds of $2,193, certificates of participation proceeds of $1,220, 2015 Series B bonds proceeds of $516, commercial paper of $17, and $2 held at a commercial bank in a non-interest-bearing checking account that is covered by depository insurance.

Hetch Hetchy did not have any unrealized gain and loss in the restricted cash and investments outside City Treasury as of June 30, 2021 and 2020.

Hetch Hetchy categorizes its fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The inputs and techniques used for valuing securities are not necessarily an indi cation of risk associated with investing in those securities.

The following is a summary of the Hetch Hetchy restricted and unrestricted cash and investments outside City Treasury and the fair value hierarchy as of June 30, 2021 and 2020.

Credit Ratings
Investments (S&P/Moody's) Maturities Fair Value
Hetchy Water
Cash and Cash Equivalents N/A $ 1 1 — — —
Total Cash and Cash Equivalents outside City Treasury $ 1 1 — — — Hetchy Power
U.S. Treasury Money Market Funds AAAm/Aaa-mf < 90 days $ 3,824 3,824 — — — Cash and Cash Equivalents N/A 19 19 — — —
Total Restricted Cash and Investments outside City Treasury $ 3,843 3,843 — — — Cash and Cash Equivalents N/A $ 611 611 — — —
Total Cash and Cash Equivalents outside City Treasury $ 611 611 — — — Hetch Hetchy Cash and Investments outside City Treasury Fair Value Measurements Using
Quoted prices
in active
markets for
identical
assets
(Level 1)
Significant
other
observable
inputs
(Level 2)

Unobservable
Inputs
(Level 3)
June 30, 2021
Investments
exempt from
fair value

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

46 (Continued)

For fiscal years 2021 and 2020, proceeds from 2015 Series A and B bonds held as restricted cash and investments outside City Treasury in the amount of $2,709 were invested in U.S. Treasury Money Market with maturity date less than 90 days. The credit ratings of the U.S. Treasury Money Market as of June 30, 2021 and 2020 were “AAAm” by S&P and “Aaa-mf” by Moody’s.

Hetch Hetchy’s cash, cash equivalents, and investments are shown on the accompanying Statements of Net Position as of June 30, 2021 and 2020:

The following table shows the percentage distribution of the City’s pooled investment by maturity:

Credit Ratings
Quoted
prices in
active
markets for
identical
assets
Significant
other
observable
inputs
Unobservable
Inputs
(S&P/Moody's) Maturities Fair Value (Level 1) (Level 2) (Level 3)

Hetchy Water
Cash and Cash Equivalents N/A $1 1 — — — Total Cash and Cash Equivalents outside City Treasury $1 1 — — —

Hetchy Power
U.S. Treasury Money Market Funds AAAm/Aaa-mf < 90 days $ 3,929 3,929 — — — Cash and Cash Equivalents N/A 17 17 — — — Total Restricted Cash and Investments outside City Treasury $ 3,946 3,946 — — — Cash and Cash Equivalents N/A $1 1 — — — Total Cash and Cash Equivalents outside City Treasury $1 1 — — —

Hetch Hetchy Cash and Investments outside City Treasury Fair Value Measurements Using
June 30, 2020
Investments
exempt from
fair valueInvestments
Hetchy Hetchy
Water Power CleanPowerSF Total 2021
Current assets:

Cash and investments with C ty Treasury $ 89,373 190,719 90,838 370,930 Cash and investments outside City Treasury 1 611 — 612 Restricted cash and investments outside C ty Treasury — 153 — 153 Non-current assets:

Restricted cash and investments w th City Treasury 6,990 5,241 — 12,231 Restricted cash and investments outside C ty Treasury — 3,690 — 3,690 Total cash, cash equivalents, and investments $ 96,364 200,414 90,838 387,616 Hetchy Hetchy
Water Power CleanPowerSF Total 2020
Current assets:

Cash and investments w th City Treasury $ 79,172 191,687 84,192 355,051 Cash and investments outside C ty Treasury 1 1 — 2 Restricted cash and investments outside C ty Treasury — 151 — 151 Non-current assets:

Restricted cash and investments with City Treasury 9,768 8,060 — 17,828 Restricted cash and investments outside C ty Treasury — 3,795 — 3,795 Total cash, cash equivalents, and investments $ 88,941 203,694 84,192 376,827 Fiscal years
ended June 30 Under 1 1 to less than 6 6 to less than 12 12 to 60 2021 14.5% 27.6% 29.7% 28.2%
2020 30.1% 32.4% 15.6% 21.9%
Investment maturities (in months)

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

47 (Continued)

(4) Capital Assets

Capital assets with a useful life of 50 years or greater include buildings and structures, reservoirs, dams, power stations, certain water mains and pipelines, transmission and distribution systems, tunnels, and bridges.

a) Hetch Hetchy capital assets as of June 30, 2021 and 2020 consist of the following:

* Decrease in construction work in progress is greater than in crease in capital asse ts being depreciated explained by $8,384 in capital project write-offs, mainly related to Bay Corridor Project, Transmission and Di stribution System Project, and Treasure Island Capital Improvement Project. Th e remaining difference of $701 was offset by direct additions to machinery and equipment.

* Decrease in construction work in progress is greater than increase in capital assets being de preciated explained by $12,237 i n capital project write-offs, mainly related to Transmission and Distribution System Imp rovement Project, Transbay Cable Project, Treasure Island Submarine Project and Alternative Transmission Project. The remaining difference of $1,019 was offset by direct additions to machinery and equipment.

2020 Increases Decreases 2021
Cap tal assets not being depreciated and amortized:

Land and rights-of-way $ 5,181 — — 5,181
Intangible assets 1,437 — — 1,437
Construction work in progress 189,077 92,645 (75,214) * 206,508 Total cap tal assets not being depreciated and amortized 195,695 92,645 (75,214) 213,126 Cap tal assets being depreciated and amortized:

Facilities and improvements 723,182 59,781 — 782,963 Intangible assets 45,715 — — 45,715
Machinery and equipment 136,573 7,750 — 144,323 Total cap tal assets being depreciated and amortized 905,470 67,531 *— 973,001 Less accumulated depreciation and amortization for:

Facilities and improvements (389,294) (16,152) — (405,446) Intangible assets (21,759) (461) — (22,220) Machinery and equipment (83,901) (5,023) — (88,924) Total accumulated depreciation and amortization (494,954) (21,636) — (516,590) Total capital assets being depreciated and amortized, net 410,516 45,895 — 456,411 Total capital assets, net $ 606,211 138,540 (75,214) 669,537 2019 Increases Decreases 2020
Capital assets not being depreciated and amortized:

Land and rights-of-way $ 5,181 — — 5,181
Intangible assets 1,437 — — 1,437
Construction work in progress 159,610 87,794 (58,327) * 189,077 Total cap tal assets not being depreciated and amortized 166,228 87,794 (58,327) 195,695 Capital assets being depreciated and amortized:

Facilities and improvements 679,362 43,820 — 723,182 Intangible assets 45,715 — — 45,715
Machinery and equipment 133,377 3,289 (93) 136,573 Total cap tal assets being depreciated and amortized 858,454 47,109 * (93) 905,470 Less accumulated depreciation and amortization for:

Facilities and improvements (374,449) (14,848) 3 (389,294) Intangible assets (21,298) (461) — (21,759) Machinery and equipment (78,304) (5,690) 93 (83,901) Total accumulated depreciation and amortization (474,051) (20,999) 96 (494,954) Total capital assets being depreciated and amortized, net 384,403 26,110 3 410,516 Total capital assets, net $ 550,631 113,904 (58,324) 606,211

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

48 (Continued)

b) Hetchy Water capital assets as of June 30, 2021 and 2020 consist of the following:

* Decrease in construction in progress incl uded $51 in capital project write-offs, main ly related to Hetchy Water’s share of ro ad improvement projects and 2018 Moccasin Strom project. The rema ining difference of $173 was offset by direct additions to machinery and equipment.

* Decrease in construction work in progress is greater than in crease in capital asse ts being depreciated explained by $1,062 in capital project write-offs, mainly related to Hetchy Water’s share of 2018 Moccasin Storm Project and Lower Cherry Aqueduct Project. The remaining difference of $345 was offset by direct additions to machinery and equipment.

2020 Increases Decreases 2021
Capital assets not being depreciated and amortized:

Land and rights-of-way $ 3,232 — — 3,232
Intangible assets 6 — — 6
Construction work in progress 24,328 22,586 (11,581) * 35,333 Total capital assets not being depreciated and amortized 27,566 22,586 (11,581) 38,571 Capital assets being depreciated and amortized:

Facil ties and improvements 284,480 11,488 —    295,968 Intangible assets 20,522 —    —    20,522
Machinery and equipment 27,303 215 —    27,518
Total capital assets being depreciated and amortized 332,305 11,703 *—    344,008 Less accumulated depreciation and amortization for:

Facil ties and improvements (169,874) (4,821) — (174,695) Intangible assets (9,739) (208) — (9,947) Machinery and equipment (19,476) (980) — (20,456) Total accumulated depreciation and amortization (199,089) (6,009) — (205,098) Total capital assets being depreciated and amortized, net 133,216 5,694 — 138,910 Total capital assets, net $ 160,782 28,280 (11,581) 177,481 2019 Increases Decreases 2020
Cap tal assets not being depreciated and amortized:

Land and rights-of-way $ 3,232 — — 3,232
Intangible assets 6 — — 6
Construction work in progress 37,625 17,669 (30,966) * 24,328 Total capital assets not being depreciated and amortized 40,863 17,669 (30,966) 27,566 Cap tal assets being depreciated and amortized:

Facil ties and improvements 254,630 29,850 — 284,480 Intangible assets 20,522 — — 20,522
Machinery and equipment 26,932 399 (28) 27,303 Total capital assets being depreciated and amortized 302,084 30,249 *( 2 8 ) 332,305 Less accumulated depreciation and amortization for:

Facil ties and improvements (166,017) (3,860) 3 (169,874) Intangible assets (9,532) (207) — (9,739) Machinery and equipment (18,295) (1,209) 28 (19,476) Total accumulated depreciation and amortization (193,844) (5,276) 31 (199,089) Total cap tal assets being depreciated and amortized, net 108,240 24,973 3 133,216 Total cap tal assets, net $ 149,103 42,642 (30,963) 160,782

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

49 (Continued)

c) Hetchy Power capital assets as of June 30, 2021 and 2020 consist of the following:

* Decrease in construction work in progress is greater than incr ease in capital assets being depreciated explained by $8,333 in capital project write-offs, mainly related to Bay Corridor Project, Transmission and Di stribution System Project, and Treasure Island Capital Improvement Project. Th e remaining difference of $528 was offset by direct additions to machinery and equipment.

* Decrease in construction work in progress is greater than increase in capital assets bein g depreciated explained by $11,175 in capital project write-offs, mainly related to Transmission and Distribution System Improvement Project, Transbay Cable Project, Treasure Island Submarine Project and Alternative Transmission Project. The remaining difference of $674 was offset by direct additions to machinery and equipment.

GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 Financial Accounting Standards Board (FASB) and American Institute of Certified Public Accountants (AICPA) Pronouncements , requires that interest expense incurred during construction of assets be capitalized.

2020 Increases Decreases 2021
Cap tal assets not being depreciated and amortized:

Land and rights-of-way $ 1,949 — — 1,949
Intangible assets 1,431 — — 1,431
Construction work in progress 164,749 70,059 (63,633) * 171,175 Total cap tal assets not being depreciated and amortized 168,129 70,059 (63,633) 174,555 Cap tal assets being depreciated and amortized:

Facilities and improvements 438,702 48,293 — 486,995 Intangible assets 25,193 — — 25,193
Machinery and equipment 109,270 7,535 — 116,805 Total cap tal assets being depreciated and amortized 573,165 55,828 *— 628,993 Less accumulated depreciation and amortization for:

Facilities and improvements (219,420) (11,331) — (230,751) Intangible assets (12,020) (253) — (12,273) Machinery and equipment (64,425) (4,043) — (68,468) Total accumulated depreciation and amortization (295,865) (15,627) — (311,492) Total cap tal assets being depreciated and amortized, net 277,300 40,201 — 317,501 Total cap tal assets, net $ 445,429 110,260 (63,633) 492,056 2019 Increases Decreases 2020
Capital assets not being depreciated and amortized:

Land and rights-of-way $ 1,949 — — 1,949
Intangible assets 1,431 — — 1,431
Construction work in progress 121,985 70,125 (27,361) *1 6 4 , 7 4 9 Total cap tal assets not being depreciated and amortized 125,365 70,125 (27,361) 168,129 Capital assets being depreciated and amortized:

Facilities and improvements 424,732 13,970 — 438,702 Intangible assets 25,193 — — 25,193
Machinery and equipment 106,445 2,890 (65) 109,270 Total cap tal assets being depreciated and amortized 556,370 16,860 *( 6 5 ) 573,165 Less accumulated depreciation and amortization for:

Facilities and improvements (208,432) (10,988) — (219,420) Intangible assets (11,766) (254) — (12,020) Machinery and equipment (60,009) (4,481) 65 (64,425) Total accumulated depreciation and amortization (280,207) (15,723) 65 (295,865) Total cap tal assets being depreciated and amortized, net 276,163 1,137 — 277,300 Total capital assets, net $ 401,528 71,262 (27,361) 445,429

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

50 (Continued)

Interest included in the construction work in progress and total interest expense incurred during the years ended June 30, 2021 and 2020 are as follows:

(5) Restricted Assets

Pursuant to the Hetchy Power Trust Indenture (the “Indenture”), established in fiscal year 2015, net revenues of the Hetchy Power are pledged first to the 2015 Series AB Bonds, and have a priority lien on the pledge of net revenues to the outstanding CREBs, QECBs, and NCREBs (the “Subordinate Obligations”). The Lease/Purchase Agreements for the Subordinate Obligations pledge the net revenues of the Hetchy Power to these bonds, and such pledge is subordinate in lien to the net revenues pledge for the 2015 Series AB Bonds (the “Bonds” or “Bond”).

In the Indenture, the SFPUC covenants and agrees that it will pay into the Revenue Fund as received all Revenues of Hetchy Power
and shall be used and applied, as provided by the Indenture, solely for the purposes of operating and maintaining Hetchy Power and paying all costs, charges, and expenses in connection therewith and for the purpose of making repairs, renewals, and replacements to Hetchy Power and constructing additions, betterments, and extensions thereto.

The Indenture provides that Revenues deposited in the Revenue Fund shall be disbursed in the following order of priority:

1. The payment of operation and maintenance expenses;

2. Any priority reconstruction and replacement fund deposits;

3. Deposit in the interest account of each Bond Fund;

4. Deposit in the bond retirement account of each Bond Fund;

5. Deposit in the reserve fund;

6. (i) Payment of principal and premium, if any, and interest on any Subordinate Obligations; (ii) deposit into a reserve fund securing any Subordinate Obligations; (iii) Swap Agreement payments pursuant to Swap Agreements entered into by the SFPUC with respect to any Subordinate Obligations; and (iv) payment to any financial institution or insurance company providing any letter of credit, line of credit, or ot her credit or liquidity facility, including municipal bond insurance and guarantees, that secures th e payment of principal or interest on any Subordinate Obligations; in each case in any orde r of priority within this paragraph which may be hereafter established by the SFPUC resolution;

7. Any additional reconstruction and replacement fund deposits into the reconstruction and replacement fund;

8. Any necessary or desirable capital additions or improvements to the Hetchy Power;

9. Any payment under a Take-or-Pay Power Purchase Agreement that does not constitute an operation and maintenance expense;

10. Any payment under a Swap Agreement that does not constitute a Swap Agreement payment; and

11. Any other lawful purpose of the SFPUC.

In the Indenture, the SFPUC covenants and agrees to transfer to the Trustee for deposit in the Interest Account of each applicable Bond Fund all Refundable Credits received by the SFPUC.

Hetchy Power 2021 2020
Interest expensed $ 1,970 2,740
Interest included in construction work in progress 1,083 1,127 Total interest incurred $ 3,053 3,867

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

51 (Continued)

In accordance with the Agreements, Hetch Hetchy maintains certain restricted cash and investment balances in trust.

(a) Hetchy Water has the following restricted assets held in trust as of June 30, 2021 and 2020:

(b) Hetchy Power has the following restricted assets held in trust as of June 30, 2021 and 2020:

Restricted assets listed above as cash and investments with City Treasury are held in fund accounts within the Hetch Hetchy Revenue Fund.

(6) Short-Term Debt

Effective March 2019, under Charter Sections 9. 107(6) and 9.107(8), and 2018 Proposition A, the Commission and Board of Supervisors authorized the issuance of up to $250,000 in commercial paper notes for the purpose of reconstructing, repl acing, expanding, repairing or improving power facilities of Hetchy Power. Interest rates for the commercial paper ranged from 0.1% to 0.2% and

0.2% to 4.0% in fiscal years 2021 and 2020, respectively. The Enterprise had $114,671 and $63,535 commercial paper outstanding as of June 30, 2021 and 2020, respectively. The Enterprise had $135,329 and $186,465 in unused authorization as of June 30, 2021 and 2020, respectively.

In accordance with GASB Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements , Significant Events of default as specified in the Reimbursement Agreements include 1) non-payment, 2) material breach of warranty, representation, or other non- remedied breach of covenants as specified in the respective agreements and 3) bankruptcy, which may result in all outstanding obligations to be immediately due and payable (unless waived by the respective Bank, if applicable); or issuance of a No-Issuance Notice, reduction in credit to outstanding amount plus interest coverage, and/or termination of the respective agreement. As of June 30, 2021, there were no such events described herein.
2021 2020
Cash and investments with City Treasury:

Hetch Hetchy bond construction fund $ 6,990 9,768
Interest receivable:

Hetch Hetchy bond construction fund — 24
Total restricted assets $ 6,990 9,792
2021 2020
Cash and investments with City Treasury:

Hetch Hetchy bond construction fund $ 5,241 8,060
Cash and investments outside City Treasury:
2009 Series C Certificates of participation - 525 Golden Gate 223 247 2009 Series D Certificates of participation - 525 Golden Gate 892 973 2015 Series A Revenue Bonds 2,193 2,193
2015 Series B Revenue Bonds 516 516
Commercial Paper 19 17
Total restricted cash and investments outside City Treasury 3,843 3,946 Interest and other receivables:

Hetch Hetchy bond construction fund 11,800 168
Total restricted assets $ 20,884 12,174

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

52 (Continued)

(7) Changes in Long-Term Liabilities
a) Hetch Hetchy’s long-term liability activities for the years ended June 30, 2021 and 2020 are as follows:

Interest Maturity Due within
rate (Calendar Year) 2020 Additions Reductions 2021 one year Bonds:

Clean Renewable Energy Bonds 0.00 % 2022 $ 1,265 — (422) 843 422 Qualified Energy Conservation Bonds 4.74 2027 4,229 — (542) 3,687 549 New Clean Renewable Energy Bonds 2012 4.74 2020 130 — (130) — — New Clean Renewable Energy Bonds 2015 4.62 2032 3,190 — (1,411) 1,779 142 2015 Series A Revenue Bonds 4.00 - 5.00 2045 32,025 — — 32,025 — 2015 Series B Revenue Bonds 3.00 - 4.00 2026 5,335 — (785) 4,550 815 Less issuance discount (34) — 14 (20) — Add issuance premiums 3,668 — (220) 3,448 — Total bonds payable 49,808 — (3,496) 46,312 1,928 2009 Series C Certificates of participation (COPs) 2.00 - 5.00 2022 1,214 — (384) 830 405 2009 Series C COPs issuance premiums 21 — (13) 8 — 2009 Series D COPs (Build America) 6.36 - 6.49 2041 12,593 — — 12,593 — Other post-employment benefits obligations 38,530 5,646 (9,170) 35,006 — Net pension liability 49,531 28,918 (16,230) 62,219 — Accrue
d vacation and sick leave 4,894 2,932 (1,624) 6,202 3,041 Accrued workers’ compensation 3,387 113 (262) 3,238 575 Damage claims liability 2,886 4,843 (6,090) 1,639 633 Due to other City departments 840 — (471) 369 369 Unearned revenues, refunds, and other 9,117 28,750 (21,708) 16,159 6,191 Total $ 172,821 71,202 (59,448) 184,575 13,142
Interest Maturity Due within
rate (Calendar Year) 2019 Additions Reductions 2020 one year Bonds:

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

53 (Continued)

b) Hetchy Water’s long-term liability activities for the years ended June 30, 2021 and 2020 are as follows:

c) Hetchy Power’s long-term liability activities for the years ended June 30, 2021 and 2020 are as follows:

Due within
2020 Additions Reductions 2021 one year
Other post-employment benefits obligations $ 16,350 1,818 (3,724) 14,444 — Net pension liability 21,477 12,119 (6,951) 26,645 — Accrued vacation and sick leave 1,646 1,034 (495) 2,185 1,059 Accrued workers’ compensation 1,187 18 (85) 1,120 197 Damage claims liability 558 478 (511) 525 218 Due to other City departments 240 — (240) — — Unearned revenues, refunds, and other 627 629 (1,118) 138 22 Total $ 42,085 16,096 (13,124) 45,057 1,496
Due within
2019 Additions Reductions 2020 one year
Other post-employment benefits obligations $ 15,404 2,206 (1,260) 16,350 — Net pension liability 20,390 5,611 (4,524) 21,477 — Accrued vacation and sick leave 1,388 653 (395) 1,646 911 Accrued workers’ compensation 1,238 75 (126) 1,187 201 Damage claims liability 224 550 (216) 558 274 Due to other City departments — 240 — 240 240 Unearned revenues, refunds, and other 623 24 (20) 627 18 Total $ 39,267 9,359 (6,541) 42,085 1,644 Interest Maturity Due within
rate (Calendar Year) 2020 Additions Reductions 2021 one year Bonds:

Clean Renewable Energy Bonds 0.00 % 2022 $ 1,265 — (422) 843 422 Qualified Energy Conservation Bonds 4.74 2027 4,229 — (542) 3,687 549 New Clean Renewable Energy Bonds 2012 4.74 2020 130 — (130) — — New Clean Renewable Energy Bonds 2015 4.62 2032 3,190 — (1,411) 1,779 142 2015 Series A Revenue Bonds 4.00 - 5.00 2045 32,025 — — 32,025 — 2015 Series B Revenue Bonds 3.00 - 4.00 2026 5,335 — (785) 4,550 815 Less issuance discount (34) — 14 (20) — Add issuance premiums 3,668 — (220) 3,448 — Total bonds payable 49,808 — (3,496) 46,312 1,928 2009 Series C Certificates of participation (COPs) 2.00 - 5.00 2022 1,214 — (384) 830 405 2009 Series C COPs issuance premiums 21 — (13) 8 — 2009 Series D COPs (Build America) 6.36 - 6.49 2041 12,593 — — 12,593 — Other post-employment benefits obligations 19,983 2,223 (4,553) 17,653 — Net pension liability 26,249 14,812 (8,495) 32,566 — Accrued vacation and sick leave 2,957 1,763 (1,103) 3,617 1,777 Accrued workers’ compensation 2,200 95 (177) 2,118 378 Damage claims liability 2,222 4,212 (5,326) 1,108 409 Due to other City departments 600 — (231) 369 369 Unearned revenues, refunds, and other 7,642 8,560 (10,209) 5,993 5,141 Total $ 125,489 31,665 (33,987) 123,167 10,407

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

54 (Continued)

d) CleanPowerSF’s long-term liability activities for the years ended June 30, 2021 and 2020 are as follows:

GASB Statement No. 88 Implemented in Fiscal Year 2019

In March 2018, the GASB issued Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements . GASB Statement No. 88 establishes additional financial statement note disclosure requirements related to debt obligations of govern ments, including direct borrowings and direct placements. This Statement applies to all Hetchy Power bonds and is discussed in each bond hereafter.

Interest Maturity Due within
rate (Calendar Year) 2019 Additions Reductions 2020 one year Bonds:

Clean Renewable Energy Bonds 0.00 % 2022 $ 1,687 — (422) 1,265 422 Qualified Energy Conservation Bonds 4.74 2027 4,765 — (536) 4,229 542 New Clean Renewable Energy Bonds 2012 4.74 2020 713 — (583) 130 130 New Clean Renewable Energy Bonds 2015 4.62 2032 3,422 — (232) 3,190 236 2015 Series A Revenue Bonds 4.00 - 5.00 2045 32,025 — — 32,025 — 2015 Series B Revenue Bonds 3.00 - 4.00 2026 6,090 — (755) 5,335 785 Less issuance discount (48) — 14 (34) — Add issuance premiums 3,892 — (224) 3,668 — Total bonds payable 52,546 — (2,738) 49,808 2,115 2009 Series C Certificates of participation (COPs) 2.00 - 5.00 2022 1,580 — (366) 1,214 384 2009 Series C COPs issuance premiums 39 — (18) 21 — 2009 Series D COPs (Build America) 6.36 - 6.49 2041 12,593 — — 12,593 — Other post-employment benefits obligations 18,826 2,697 (1,540) 19,983 — Net pension liability 24,920 6,858 (5,529) 26,249 — Accrued vacation and sick leave 2,643 1,474 (1,160) 2,957 1,596 Accrued workers’ compensation 2,261 261 (322) 2,200 384 Damage claims liability 2,053 9,182 (9,013) 2,222 705 Due to other City departments 350 14,090 (13,840) 600 231 Unearned revenues, refunds, and other 7,789 5,815 (5,962) 7,642 4,852 Total $ 125,600 40,377 (40,488) 125,489 10,267
Due within
2020 Additions Reductions 2021 one year
Other post-employment benef ts obligations $ 2,197 1,605 (893) 2,909 — Net pension liabil ty 1,805 1,987 (784) 3,008 — Accrued vacation and sick leave 291 135 (26) 400 205 Damage claims liabil ty 106 153 (253) 6 6 Unearned revenues, refunds, and other 848 19,561 (10,381) 10,028 1,028 Total $ 5,247 23,441 (12,337) 16,351 1,239 Due within
2019 Additions Reductions 2020 one year
Other post-employment benef ts obligations $ 1,242 2,206 (1,251) 2,197 — Net pension liabil ty 1,070 2,052 (1,317) 1,805 — Accrued vacation and sick leave 211 114 (34) 291 175 Damage claims liabil ty 7 307 (208) 106 53 Unearned revenues, refunds, and other 542 13,376 (13,070) 848 848 Total $ 3,072 18,055 (15,880) 5,247 1,076

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

55 (Continued)

(a) Clean Renewable Energy Bonds
In November 2008, Hetchy Power issued $6,325 of taxable CREBs to finance the installation of solar energy equipment on City-owned facilities , including Chinatown Branch Library, Maxine Hall Medical Center, City Distribution Division Warehouse, North Point Wastewater Plant, Chinatown Public Health Center, Municipal Transportation Agency Woods, and Municipal Transportation Agency Ways and Structures. Th e CREBs were non-rated and privately-placed with Banc of America Leasing. The net effective interest rate on the CREBs, after the federal tax subsidy, is 0% through 2022. Hetchy Power began making principal payments in the amount of $422 on December 15, 2008 and will continue annual payments for 15 years until December 15, 2022. Funding for these payments will be guaranteed by net power revenues. Interest payments are not required, since the effective equivalent of interest on the bonds is paid in the form of federal tax credits in lieu of interest paid by the issuer.

Significant events of default as specified in the Equipment Lease/Purchase Agreement, include 1) payment defaults, 2) material breach of warranty, representation, or covenants of the Equipment Lease/Purchase Agreement (not cured within applicable grace periods) and 3) bankruptcy and insolvency events, which could cause acceleration of all Rental Payments.

Assets constructed by the projects funded from proceeds of this debt obligation are pledged as collateral. As of June 30, 2021, there were no such events described herein. The future annual debt service relating to the CREBs outstanding as of June 30, 2021 is as follows:

(b) Qualified Energy Conservation Bonds
In December 2011, Hetchy Power issued $8,291 of taxable QECBs. The QECBs were issued to fund certain qualified green components for the SFPUC’s 525 Golden Gate Headquarters project. The QECBs were non-rated and privately placed with Banc of America Leasing. The net effective interest rate on the QECBs, after the federal tax subsidy, is 1.2% through 2028.

Significant events of default as specified in the Equipment Lease/Purchase Agreement, include 1) payment defaults 2) material breach of warranty, representation, or covenants of the Equipment Lease/Purchase Agreement (not cured within applicable grace periods) and 3) bankruptcy and insolvency events, which could cause acceleration of all Rental Payments. Assets constructed by the projects funded from proceeds of this debt obligation are pledged as collateral. As of June 30, 2021, there were no such events described herein.

Fiscal years ending June 30: Principal
2022 $ 422
2023 421
843
Less: Current portion (422)
Less: Unamortized bond discount (20)
Long-term portion as of June 30, 2021 $ 401

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

56 (Continued)

The future annual debt service relating to the QECBs outstanding as of June 30, 2021 is as follows:

* The SFPUC received IRS notice dated June 29, 2021 that the federal interest subsidy is reduced by 5.7% or a total reductio n of $26 due to sequestration over the remaining life of the bonds assuming the sequestration rate will remain the same.

(c) New Clean Renewable Energy Bonds 2012
In April 2012, Hetchy Power issued $6,600 of taxable NCREBs. The NCREBs were issued to fund certain qualified facilities that provide clean, renewable energy at Davies Symphony Hall, City Hall, and University Mound Reservoir. The NCREBs were non-rated and privately placed with Banc of America Leasing. The net effective interest rate on the NCREBs, after the federal tax subsidy, is 1.5% through 2021. $288 and $2,523 of principal were prepaid in fiscal year 2017 and 2016, respectively. There was no prepayme nt thereafter. 2012 NCREBs have been fully repaid as of June 30, 2021.

Assets constructed by the projects funded from proceeds of this debt obligation are pledged as collateral. As of June 30, 2021, there were no such events described herein. (d) New Clean Renewable Energy Bonds 2015
In October 2015, Hetchy Power issued $4,100 of taxable 2015 NCREBs. The 2015 NCREBs were issued to fund certain qualified clean, renewable energy solar generation facilities at the Marina Middle School and the San Francisco Police Academy. The 2015 NCREBs were non- rated and privately placed with Ba nc of America Leasing. The net effective interest rate on the 2015 NCREBs, after the federal tax subsidy, is 1.4% through 2033. $1,272 and $0 of principal were prepaid in fiscal years 2021 and 2020, respectively.

Assets constructed by the projects funded from proceeds of this debt obligation are pledged as collateral. As of June 30, 2021, there were no such events described herein.

Interest Federal Interest
before interest net of
Fiscal years ending June 30: Principal subsidy subsidy* subsidy 2022 $ 549 168 (119) 49
2023 555 142 (100) 42
2024 562 116 (82) 34
2025 569 89 (63) 26
2026 576 62 (44) 18
2027-2028 876 42 (28) 14
3,687 619 (436) 183
Less: Current portion (549)
Long-term portion as of June 30, 2021 $ 3,138

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

57 (Continued)

The future annual debt service relating to the 2015 NCREBs outstanding as of June 30, 2021 is as follows:

* The SFPUC received IRS notice dated June 29, 2021 that the fede ral interest subsidy is reduced by 5.7% or a total reduction of $20 due to sequestration over the remaining life of the bonds assuming the sequestration rate will remain the same.

(e) Power Revenue Bonds 2015 Series A (Green) and Series B In May 2015, Hetchy Power issued tax-exempt revenue bonds, 2015 Series A (Green) in the amount of $32,025 with interest rates ranging from 4.0% to 5.0% and 2015 Series B in the amount of $7,530 with interest rates ranging from 3.0% to 4.0%. Proceeds from the bonds were used to finance reconstruction or replacement of existing facilities of the SFPUC’s Hetch Hetchy project, to fund capitalized interest on the 2015 Series AB Bonds, to fund a debt service reserve account for the 2015 Series AB Bonds, and to pay costs of issuance of the 2015 Series AB bonds. The bonds were rated “A+” and “AA-” by S&P and Fitch, respectively. Final maturity for 2015 Series AB are November 1, 2045 and November 1, 2026, respectively. The true interest cost is 3.95%. As of June 30, 2021 and 2020, the outstanding principal amounts were $36,575 and $37,360, respectively.

Significant events of default as specified in th e Power Enterprise Indenture (applicable to Power Revenue Bonds) include 1) non-payment, 2) mate rial breach of warranty, representation, or indenture covenants (not cured within applic able grace periods) and 3) bankruptcy and insolvency events, which may result in the Trustee (upon written request by the majority of the owners (by aggregate amount of the bond obligations), declare the principal and the interest accrued thereon to be due and payable immediately. As of June 30, 2021, there were no such events described herein.

Interest Federal Interest
before interest net of
Fiscal years ending June 30: Principal subsidy subsidy* subsidy 2022 $ 142 81 (53) 28
2023 146 74 (49) 25
2024 148 67 (44) 23
2025 150 60 (40) 20
2026 152 53 (35) 18
2027-2031 792 159 (105) 54
2032-2033 249 12 (8) 4
1,779 506 (334) 172
Less: Current portion (142)
Long-term portion as of June 30, 2021 $ 1,637

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

58 (Continued)

The future annual debt service relating to the 2015 Series AB Bonds outstanding as of June 30, 2021 are as follows:

(f) Certificates of Participation Issued for the 525 Golden Gate Headquarters Building In October 2009, the City issued $167,670 in certificates of participation to fund construction of the headquarters of the SFPUC at 525 Golden Gate Avenue. The 2009 Series C certificates were issued for $38,120 and 2009 Series D for $129,550 as “Build America Bonds” (BABs) on a taxable basis under the 2009 American Recovery and Reinvestment Act. The 2009 Series C certificates carry interest rates ranging from 2.0% to 5.0% and mature on November 1, 2022.

The 2009 Series D certificates carry interest rates ranging from 6.4% to 6.5% and mature on November 1, 2041. After adjusting Series D for the federal interest subsidy, the true interest cost averages 3.4% and 4.3% for Series C and Series D certificates, respectively.

Under the terms of a Memorandum of Understanding between the City and the SFPUC dated October 1, 2009, the City conveyed the real pr operty to the Trustee, the Bank of New York Mellon Trust Company, N.A., which was replaced by U.S. Bank in March 2014 under a property lease in exchange for the proceeds of the sale of the certificates. The Trustee has leased the property back to the City for the City’s use under a project lease. The City is obligated under the project lease to pay base rental payments and other payments to the Trustee each year during the 32-year term of the project lease. The Commission makes annual base rental payments to the City for the building equal to annual debt service on the certificates. It is anticipated these lease costs will be offset with reductions in costs associated with current office rental expense.

Hetchy Power’s share is reflected on the Hetchy Power fund statements. There are no events of default stated in this memorandum of understanding.

Fiscal years ending June 30: Principal Interest Total
2022 $ — 1,593 1,593
2023 — 1,593 1,593
2024 — 1,593 1,593
2025 — 1,593 1,593
2026 — 1,593 1,593
2027-2031 5,235 7,388 12,623
2032-2036 6,860 5,873 12,733
2037-2041 8,755 3,931 12,686
2042-2046 11,175 1,452 12,627
32,025 26,609 58,634
Add: Unamortized bond premium 3,272
Long-term portion as of June 30, 2021 $ 35,297
Hetchy Power - Power Revenue Bonds 2015 Series A (Green) Fiscal years ending June 30: Principal Interest Total
2022 $ 815 157 972
2023 850 124 974
2024 880 93 973
2025 910 62 972
2026 945 25 970
2027 150 3 153
4,550 464 5,014
Less: Current portion (815)
Add: Unamortized bond premium 176
Long-term portion as of June 30, 2021 $ 3,911
Hetchy Power - Power Revenue Bonds 2015 Series B

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

59 (Continued)

The Power, Water, and Wastewater Enterprises have ownership interest in the building equal to their projected usage of space as follows: Water (73%), Wastewater (15%), and Power (12%).

Similarly, each Enterprise is responsible for a portion of the annual base rental payment based on their ownership percentages less contributed equity. The percentage share of base rental payments for the Enterprises is as follows: Wa ter (71.4%), Wastewater (18.9%), and Power (9.7%). The future annual debt service relating to the certificates of participation 2009 Series C and D outstanding as of June 30, 2021 are as follow:

* The SFPUC received IRS notice dated June 29, 2021 that the federal interest subsidy is reduced by 5.7% or a total reduction of $207 due to sequestration over the remaining life of the bonds assuming the sequestration rate will remain the same.

(8) Revenue Pledge

Hetchy Power has pledged future power revenues to repay the 2008 CREBs, the 2011 QECBs, the 2012 NCREBs, and the 2015 NCREBs. Additionally, Hetchy Power has pledged future power revenues for 2015 Series AB power revenue bonds. Proceeds from the bonds provided financing for various capital construction and facility energy efficiency projects. The Series 2015 AB power revenue bonds are payable through fiscal year 2046 and are solely payable from net revenues of Hetchy Power on a senior lien basis to the 2008 CREBs, the 2011 QECBs, the 2012 NCREBs, and the 2015 NCREBs.

Fiscal years ending June 30: Principal Interest Total
2022 $ 405 31 436
2023 425 10 435
830 41 871
Less: Current portion (405)
Add: Unamortized bond premium 8
Long-term portion as of June 30, 2021 $ 433
Hetchy Power - Certificates of Participation 2009 Series C (Tax Exempt) Interest Federal Interest
before interest net of
Fiscal years ending June 30: Principal subsidy subsidy* subsidy 2022 $ — 812 (268) 544
2023 — 812 (268) 544
2024 445 798 (263) 535
2025 463 769 (254) 515
2026 483 739 (244) 495
2027-2031 2,736 3,199 (1,056) 2,143
2032-2036 3,370 2,218 (732) 1,486
2037-2041 4,155 1,002 (331) 671
2042 941 32 (10) 22
10,381 (3,426) 6,955
Long-term portion as of June 30, 2021 $ 12,593
Hetchy Power - Certificates of Participation 2009 Series D (Taxable BABs)

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

60 (Continued)

The original amount of bonds issued, total principal and interest remaining, principal and interest paid during fiscal years 2021 and 2020, applicable net revenues, and funds available for debt service are as follows:

* P e r I n de n t u r e , d e b t s e r v i c e f o r c o v e r a g e i s c a l c u la te d u s i n g t he amount of principal and interest paid during the year for the 2015 series AB power revenue bonds, which has a senior lien on power enterprise revenues; principal and interest paid during the year for the 2015 Series AB power revenue bonds was $2,567.

(9) Other Non-Operating Revenues – Transbay Cable Construction and Licensing Fees

In 2007, the Board of Supervisors adopted the resolution to enter into two non-exclusive licenses with the Transbay Cable LLC (the Licensee) for the Transbay Cable Project. The Licensee proposed to install, operate, and maintain approximately 53 miles of high-voltage direct current transmission cable running from the City of Pittsburg to the City. The first license is a Construction License to install a 400 MW high-voltage transmission line, with a four-year term. The Licensee has paid Hetchy Power $3,500 in Renewable Energy, Transmission and Grid Reliability. Of this amount, $1,905 of the payments were spent for study and development of two City-owned transmission projects, a Newark-San Francisco project, and a Potrero-Embarcadero project. In 2020, the Board of Supervisors adopted an ordinance to use $1,593 of the remaining funds from this license to analyze the proposed purchase of power assets from Pacific Gas & Electric Company. The entire licensing fees were fully spent as of 2020.

The second license is an operational license for operation of the transmission line with 25-year term and an option to renew for 10 years. The Licensee agrees to pay Hetchy Power in excess of $20,000 in 10 separate installments of $2,000 annually with adjustments for inflation, as the “San Francisco Electric Reliability Payment” to implement, advance, promote, or enhance policies and projects consistent with City Energy Policies. The project came on line November 29, 2010, and Hetchy Power received the first installment of $2,000. As of June 30, 2021, cumulative revenues to date of $22,708 were recorded, with final payment of $2,574 received in fiscal year 2020. Per agreement, the SFPUC shall consult with Departments of Environment and Public Health, as well as community members, including the Power Plant Task Force, in developing its proposals to the Board of Supervisors on how to spend the San Francisco Electricity Reliability Payment, and shall consider specifically renewable energy, conservation, and environmental health programs, which benefit low- income, at-risk, and environmentally disadvantaged communities. The San Francisco Electricity Reliability Payment shall also be partly used for green jobs training and placement programs, which benefit low-income, at-risk, and environmentally disadvantaged communities. As of June 30, 2021, cumulative expenses of $9,611 have been incurred, with $1,254 and $843 in fiscal years 2021 and 2020, respectively.

(10) Employee Benefits

(a) Pension Plan

Retirement Plan – Hetch Hetchy participates in a cost-sharing multiple-employer defined benefit pension Plan (SFERS Plan). The Plan is administered by the San Francisco City and County Employees’ Retirement System (SFERS). For purposes of measuring the net pension liability, deferred outflows/inflows of resources related to pensions, pension expense, information about Hetchy Power 2021 2020
Bonds issued with revenue pledge $ 64,871 64,871
Principal and interest remaining due at the end of the year 71,082 76,829 Principal and interest paid during the year* 5,368 4,743 Net revenues for the year ended June 30 10,609 34,522 Funds available for debt service 34,178 80,561

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

61 (Continued)

the fiduciary net position of the SFERS Plan, and additions to/deductions from the SFERS Plan’s fiduciary net position have been determined on the same basis as they are reported by the SFERS Plan. Contributions are recognized in the period in which they are due pursuant to legal requirements. Benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

GASB Statement No. 68 requires that the SFERS Plan reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

SFERS Plan – The City is an employer of the plan with a proportionate share of 94.39% as of June 30, 2020 (measurement date), 0.26% increased from prior year. Hetch Hetchy’s allocation percentage was determined based on its employer contributions divided by the City’s total employer contributions for fiscal years 2020 and 2019. Hetch Hetchy’s net pension liability, deferred outflows/inflows of resources related to pensions, amortization of deferred outflows/inflows, and pension expense is based on its allocated percentage. Hetch Hetchy’s allocation of the City’s proportionate share was 1.22%, of which 0.52% for Hetchy Water, 0.64% for Hetchy Power, and 0.06% for CleanPowerSF as of June 30, 2020 (measurement date).

Hetch Hetchy’s allocation of the City’s proportionate share was 1.17%, of which 0.51% for Hetchy Water, 0.62% for Hetchy Power, and 0.04% for CleanPowerSF as of June 30, 2019 (measurement date).

Plan Description – The Plan provides basic service retirement, disability, and death benefits based on specified percentages of defined fina l average monthly salary and provides annual cost-of-living adjustments (COLA) after retirement. The Plan also provides pension continuation benefits to qualified survivors. The City Charter and the Administrative Code are the authorities which establish and amend the benefit provisions and employer obligations of the Plan. The Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for the Plan. That report may be obtained on the Retirement System’s website or by writing to the San Francisco Employees’ Retirement System, 1145 Market Street, 5
th Floor, San Francisco, CA 94103 or by calling (415) 487-7000.

Benefits – The Retirement System provides service retirement, disability and death benefits based on specified percentages of defined final average monthly salary and annual COLA after retirement. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. The Retirement System pays benefits according to the category of employment and the type of benefit coverage prov ided by the City. The four main categories of Plan members are:

a) Miscellaneous Non-Safety Members – staff, oper ational, supervisory, and all other eligible employees who are not in special membership categories. b) Sheriff’s Department and Miscellaneous Safety members – sheriffs assuming office on and after January 7, 2012, and undersheriffs, deputized personnel of the Sheriff’s department, and miscellaneous safety employees hired on and after January 7, 2012.

Fiscal Year 2021 Fiscal Year 2020
Valuation Date (VD) June 30, 2019 updated to June 30, 2020 June 30, 2018 updated to June 30, 2019 Measurement Date (MD) June 30, 2020 June 30, 2019
Measurement Period (MP) July 1, 2019 to June 30, 2020 July 1, 2018 to June 30, 2019

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

62 (Continued)

c) Firefighter Members – firefighters and other employees whose principal duties are in fire prevention and suppression work or who occupy positions designated by law as firefighter member positions.
d) Police Members – police officers and other employees whose principal duties are in active law enforcement or who occupy positions designated by law as police member positions.

The membership groups and the related service retirement benefits are included in the Notes to the Basic Financial Statements of San Francisco Employees’ Retirement System.

All members are eligible to apply for a disability retirement benefit, regardless of age, when they have 10 or more years of credited service and they sustain an injury or illness that prevents them from performing their duties. Safety members are eligible to apply for an industrial disability retirement benefit from their first day on the job if their disability is caused by an illness or injury that they receive while performing their duties.

All retired members receive a benefit adjustment each July 1, which is the Basic COLA. The majority of adjustments are determined by ch anges in Consumer Price Index with increases capped at 2%. The Plan provides for a Supplemental COLA in years when there are sufficient “excess” investment earnings in the Plan. The maximum benefit adjustment each July 1 is 3.5% including the Basic COLA. Effective July 1, 2012, voters approved changes in the criteria for payment of the Supplemental COLA benefit, so that Supplemental COLAs would only be paid when the Plan is also fully funded on a market value of assets basis. Certain provisions of this voter-approved proposition were challenged in the Courts. A decision by the California Courts modified the interpretation of the proposition. Effective July 1, 2012, members who retired before November 6, 1996 will receive a Supplemental COLA only when the Plan is also fully funded on a market value of assets basis. Ho wever, the “full funding” requirement does not apply to members who retired on or after November 6, 1996 and were hired before January 7, 2012. For all members hired before January 7, 2012, all Supplemental COLAs paid to them in retirement benefits will continue into the future even where an additional Supplemental COLA is not payable in any given year. For members hired on and after January 7, 2012, a Supplemental COLA will only be paid to retirees when the Plan is fully funded on a market value of asset basis and in addition for these members, Supplemental COLAs will not be permanent adjustments to retirement benefits. That is, in years when a Su pplemental COLA is not paid, all previously paid Supplemental COLAs will expire.

Funding and Contribution Policy

SFERS Plan – Contributions are made by both the City and the participating employees.

Employee contributions are mandatory as required by the Charter. Employee contribution rates varied from 7.5% to 13.0% as a percentage of gross covered salary in fiscal years 2021 and 2020. Most employee groups agreed through collective bargaining for employees to contribute the full amount of the employee contributions on a pretax basis. The City is required to contribute at an actuarially determined rate. Based on the July 1, 2019 actuarial report, the required employer contribution rate for fiscal year 2021 range from 22.40% to 26.90%. Based on the July 1, 2018 actuarial report, the required employer contribution rate for fiscal year 2020 range from 20.69% to 25.19%.

Employer contributions and employee contributions made by the employer to the Plan are recognized when due and the employer has made a formal commitment to provide the contributions. The City’s proportionate share of employer contributions recognized by the Retirement System in fiscal years ended June 30, 2020 and 2019 (measurement years) were

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

63 (Continued)

$701,307 and $607,408, respectively. Hetchy Water’s allocation of employer contributions were $3,574 and $3,073 or 45%, and Hetchy Power’s allocation of employer contributions were $4,369 and $3,756 or 55%, respectively, for fiscal years 2020 and 2019 (measurement periods). CleanPowerSF’s allocation of employer contributions were $300 and $161, respectively, for fiscal years 2020 and 2019 (measurement periods).

Pension Liabilities, Pension Expenses, and Deferre d Outflows and Inflows of Resources Related to Pensions

Fiscal Year 2021

As of June 30, 2021, the City reported net pension liabilities (NPL) for its proportionate share of the net pension liability of the SFERS Plan of $5,107,270. The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the SFERS Plan is measured as of June 30, 2020 (measurement date), and the total pension liability for the SFERS Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportion of the net pension liability for the SFERS Plan was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. Hetch Hetchy’s allocation of the City’s proportionate share of the net pension liability for the SFERS Plan as of June 30, 2021 was $62,219, of which $26,645 for Hetchy Water, $32,566 for Hetchy Power, and $3,008 for CleanPowerSF.

For the year ended June 30, 2021, the City’s recognized pension expense was $962,576 (which includes Retirement Benefit Plan pension expense of $25,243), including amortization of deferred outflows/inflows related pension items. Hetch Hetchy’s allocation of pension expense including amortization of deferred outflows/i nflows related pension items were $14,883, of which $6,103 for Hetchy Water, $7,459 for Hetchy Power, and $1,321 for CleanPowerSF.

Pension expense increased from the prior year, largely due to the amortization of deferrals.

At June 30, 2021, Hetch Hetchy’s reported deferred outflows of resources and deferred inflows of resources related to pensions were the following:

Hetchy Hetchy Hetchy Hetchy
Fiscal Year 2021 Water Power CleanPowerSF Total Water Power CleanPowerSF Total Pension contributions subsequent to the $ 4,130 5,048 466 9,644 — — — — measurement date
Differences between expected and actual
experience 905 1,106 102 2,113 83 102 9 194 Changes in assumptions 1,463 1,788 165 3,416 462 564 52 1,078 Net difference between projected and actual
earnings on pension plan investments 558 682 63 1,303 — — — — Change in employer's proportion 743 907 7 1,657 443 541 1,032 2,016 Total $ 7,799 9,531 803 18,133 988 1,207 1,093 3,288 Schedules of Deferred Outflows and Inflows of Resources Deferred Outflows of Deferred Inflows of
Resources Resources

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

64 (Continued)

Amounts reported as deferred outflows, exclusive of contributions made after the measurement date, and deferred inflows of resources will be amortized annually and recognized in pension expense as follows:

Fiscal Year 2020

As of June 30, 2020, the City reported net pens ion liabilities for its proportionate share of the pension liability of the Plan of $4,213,808. The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2019 (measurement date), and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2018 rolled forward to June 30, 2019 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. Hetch Hetchy’s allocation of the City’s proportionate share of the net pension liability for the Plan as of June 30, 2020 was $49,531, of which $21,477 for Hetchy Water, $26,249 for Hetchy Power, and $1,805 for CleanPowerSF.

For the year ended June 30, 2020, the City’s recognized pension expense was $883,395 including amortization of deferred outflow/inflow related pension items. Hetch Hetchy’s allocation of pension expense including amortizati on of deferred outflow/inflow related pension items were $9,852, of which $3,619 for Hetchy Water, $4,424 for Hetchy Power, and $1,809 for CleanPowerSF. Pension expense increased from the prior year, largely due to the amortization of deferrals.

At June 30, 2020, Hetch Hetchy’s reported deferred outflows of resources and deferred inflows of resources related to pensions were the following:

Fiscal Hetchy Hetchy
years Water Power CleanPowerSF Total
2022 $ (115) (141) (472) (728) 2023 665 812 (195) 1,282 2024 1,160 1,418 (90) 2,488
2025 971 1,187 1 2,159 $2 , 6 8 1 3,276 (756) 5,201
Hetchy Hetchy Hetchy Hetchy
Fiscal Year 2020 Water Power CleanPowerSF Total Water Power CleanPowerSF Total Pension contribution subsequent to the $ 3,574 4,369 300 8,243 —    —    —    — measurement date
Differences between expected and actual
experience 159 194 13 366 236 289 20 545
Changes in assumptions 3,055 3,733 257 7,045 —    —    —    — Net difference between projected and actual
earnings on pension plan investments —
—    —    —    3,958 4,837 333 9,128 Change in employer's proportion 1,162 1,420 2 2,584 141 172 857 1,170 Total $ 7,950 9,716 572 18,238 4,335 5,298 1,210 10,843 Schedules of Deferred Outflows and Inflows of Resources Deferred Outflows of Deferred Inflows of
Resources Resources

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

65 (Continued)

Actuarial Assumptions

Fiscal Year 2021

A summary of the actuarial assumptions and methods used to calculate the Total Pension Liability for SFERS Plan as of June 30, 2020 (measurement year) is provided below, including any assumptions that differ from those used in the July 1, 2019 actuarial valuation. Refer to the July 1, 2019 actuarial valuation report for a complete description of all other assumptions, which can be found on the Retirement System’s website http://mysfers.org.

For healthy annuitants, the sex distinct 2009 CalPERS healthy annuitant mortality table, adjusted 1.014 for females and 0.909 for males. For active members, the sex distinct 2009 CalPERS employee mortality tables, adjusted 0.918 for females and 0.948 for males. Rates are projected generationally from the 2009 base year using a modified version of the MP-2015 projection scale.

The actuarial assumptions used at the June 30, 2020 measurement date was based upon the result of a demographic experience study for the period July 1, 2009 through June 30, 2014 and an economic experience study as of July 1, 2019.

Fiscal Hetchy Hetchy
years Water Power CleanPowerSF Total
2021 $ 1,197 1,464 (235) 2,426 2022 (1,047) (1,280) (425) (2,752) 2023 (293) (359) (181) (833) 2024 184 224 (97) 311 $4 1 49 (938) (848)
Key Actuarial Assumptions
Valuation Date June 30, 2019 updated to June 30, 2020
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost
Expected Rate of Return 7.40% net of pension plan investment, including inflation Municipal Bond Yield 3.50% as of June 30, 2019

2.21% as of June 30, 2020
Bond Buyer 20-Bond GO Index, June 27, 2019 and June 25, 2020 Inflation 2.75%
Projected salary increases 3.50% plus merit component based employee classification and years of service Discount Rate 7.40% as of June 30, 2019

7.40% as of June 30, 2020
Administrative Expenses 0.60% of payroll as of June 30, 2019

0.60% of payroll as of June 30, 2020
Basic COLA
June 30, 2019
June 30, 2020
SFERS Plan

4.20%

2.00%

2.50%

3.10%

3.10%
Old Miscellaneous and
all New Plans
Old Police & Fire
Charters A8.559 and
A8.585
Old Police & Fire
Charters A8.595 and
A8.596
Old Police & Fire
Pre 7/1/75

4.20%

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

66 (Continued)

Fiscal Year 2020

A summary of the actuarial assumptions and methods used to calculate the Total Pension Liability as of June 30, 2019 (measurement period) is provided below, including any assumptions that differ from those used in the July 1, 2018 actuarial valuation. Refer to the July 1, 2018 actuarial valuation report for a complete description of all other assumptions, which can be found on the Retirement System’s website http://mysfers.org.

Mortality rates for active members and healthy an nuitants were based upon adjusted Employee and Healthy Annuitant CalPERS mortality tables projected generationally from the 2009 base year using a modified version of the MP-2015 projection scale.

Discount Rate

Fiscal Year 2021

SFERS Plan – The beginning and end of year measurements are based on different assumptions and contribution methods that may resu lt in different discount rates. The discount rate was 7.40% as of June 30, 2020 (measurement date) and June 30, 2019 (measurement date).

The discount rate used to measure the Total Pension Liability as of the June 30, 2020 was

7.40%. The projection of cash flows used to de termine the discount rate assumed that plan member contributions will continue to be made at the rates specified in the Charter. Employer contributions were assumed to be made in accordance with the contribution policy in effect for July 1, 2019 actuarial valuation. That policy includes contributions equal to the employer portion of the entry age, normal costs for members as of the valuation date, a payment for the expected administrative expenses, and an amortization payment on the unfunded actuarial liability.

3.50% as of June 30, 2019
Bond Buyer 20-Bond GO Index, June 28, 2018 and June 27, 2019 Inflation 2.75%
Salary Increases 3.50% plus merit component based on employee classification and years of service Discount Rate 7.50% as of June 30, 2018

7.40% as of June 30, 2019
Administrative Expenses 0.60% of payroll as of June 30, 2018

0.60% of payroll as of June 30, 2019
Basic COLA
Old Miscellaneous and
All New Plans
Old Police & Fire,
pre 7/1/75
Old Police & Fire,
Charters A8.595
and A8.596
Old Police & Fire,
Charters A8.559
and A8.585
June 30, 2018 2.00% 2.50% 3.10% 4.20%
June 30, 2019 2.00% 2.50% 3.10% 4.20%
Key Actuarial Assumptions

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

67 (Continued)

is amortized over a 19-year peri od commencing July 1, 2014. Experience gains and losses and assumption or method changes on or after July 1, 2014 are amortized over 20 years. The full amortization payment for the 2015 assumption chan ges is phased in over a period of 5 years.

For the July 1, 2016 valuation, the increase in th e unfunded actuarial liability attributable to the Supplemental COLAs granted on July 1, 2013 and July 1, 2014 are amortized over 17-years and 5-years respectively. All amortization schedules ar e established as a level percentage of payroll, so payments increase 3.50% each year. The unfund ed actuarial liability is based on an actuarial value of assets that smooths investment gains and losses over five years and a measurement of the actuarial liability that excludes the value of any future Supplemental COLAs.

While the contributions and measure of actuaria l liability in the funding valuation do not anticipate any future Supplemental COLAs, the projected contributions for the determination of the discount rate include the anticipated future amortization payments on future Supplemental COLAs for current members when they are expected to be granted. For members who worked after November 6, 1996 and before Proposition C passed (Post 1997 Retirees), a Supplemental COLA is granted if the actual investment earnings during the year exceed the expected investment earnings on the actuarial value of assets. For members who did not work after November 6, 1996 and before Proposition C passed, the market value of assets must also exceed the actuarial liability at the beginning of the year for a Supplemental COLA to be granted.

When a Supplemental COLA is granted, the amou nt depends on the amount of excess earnings and the basic COLA amount for each membership group. The large majority of members receive a 1.50% Supplemental COLA when granted.

Because the probability of a Supplemental COLA depends on the current funded level of the Retirement System for certain members, an assumption was developed as of June 30, 2020 for the probability and amount of Supplemental COLA for each future year. There were no excess earnings during the fiscal year ending June 30, 2020; consequently, no Supplemental COLA will be paid effective July 1, 2020. The table be low shows the net assumed Supplemental COLA for members with a 2.00% Basic COLA for sample years.

The projection of benefit payments to current members for determining the discount rate includes the payment of anticipated future Supplemental COLAs.

Based on these assumptions, the Retirement System’s fiduciary net position was projected to be available to make projected future benefit payments for current members for all future years.

Projected benefit payments are discounted at the long-term expected return on assets of 7.40% to the extent the fiduciary net position is available to make the payments and at the municipal bond rate of 2.21% to the extent they are not available. The single equivalent rate used to determine the Total Pension Liability as of June 30, 2020 is 7.40%.

Assumed Supplemental COLA for Members with a 2.00% Basic COLA Fiscal years
2022 0.75 % 0.19 %
2024 0.75 0.27
2026 0.75 0.30
2028 0.75 0.33
2030 0.75 0.35
2032 0.75 0.37
2034+ 0.75 0.38
96 - Prop C
Before 11/6/96
or After Prop C

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

68 (Continued)

The long-term expected rate of return on pensio n plan investments was 7.40%. It was set by the Retirement Board after consideration of both expected future returns and historical returns experienced by the Retirement System. Expected future returns were determined by using a building-block method in which best-estimate ranges of expected future real rates of return were developed for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Target allocation and best estimates of geometric long-term expected real rates of return (net of pension plan investment expense and inflation) for each major asset class are summarized in the following table.

Fiscal Year 2020

The beginning and end of year measurements are based on different assumptions and contribution methods that may result in different discount rates. The discount rate was 7.40% as of June 30, 2019 (measurement date) and 7. 50% as of June 30, 2018 (measurement date), respectively.

The discount rate used to measure the Total Pension Liability as of the June 30, 2019 was

7.40%. The projection of cash flows used to de termine the discount rate assumed that plan member contributions will continue to be made at the rates specified in the Charter. Employer contributions were assumed to be made in accordance with the contribution policy in effect for July 1, 2018 actuarial valuation. That policy includes contributions equal to the employer portion of the Entry Age normal costs for members as of the valuation date, a payment for the expected administrative expenses, and an amortization payment on the unfunded actuarial liability.

The amortization payment is based on closed periods that vary in length depending on the source. Charter amendments prior to July 1, 2014 are amortized over 20 years. After July 1, 2014, any Charter changes to active member benefits are amortized over 15 years and changes to inactive member benefits, including Supplemental COLAs, are amortized over 5 years. The remaining unfunded actuarial liability not attributable to Charter amendments as of July 1, 2013 is amortized over a 19-year peri od commencing July 1, 2014. Experience gains and losses and assumption or method changes on or after July 1, 2014 are amortized over 20 years. For the July 1, 2016 valuation, the increase in the un funded actuarial liability attributable to the Supplemental COLAs granted on July 1, 2013 and July 1, 2014 are amortized over 17-years and 5-years respectively. All amortization schedules ar e established as a level percentage of payroll, so payments increase 3.50% each year. The unfund ed actuarial liability is based on an actuarial value of assets that smooths investment gains and losses over five years and a measurement of the actuarial liability that excludes the value of any future Supplemental COLAs.

While the contributions and measure of actuaria l liability in the funding valuation do not anticipate any future Supplemental COLAs, the projected contributions for the determination of Asset Class
Target
Allocation
Long-Term Expected Real
Rate of Return
Global Equ ty 31.0 % 4.9 % Private Equ ty 18.0 7.9
Real Assets 17.0 5.7
Hedge Funds/Absolute Returns 15.0 3.0
Private Cred t 10.0 4.8
Treasuries 6.0 (0.5)
Liquid Credit 3.0 2.7
Total 100.0

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

69 (Continued)

the discount rate include the anticipated future amortization payments on future Supplemental COLAs for current members when they are expected to be granted. For members who worked after November 6, 1996 and before Proposition C passed (Post 1997 Retirees), a Supplemental COLA is granted if the actual investment earnings during the year exceed the expected investment earnings on the actuarial value of assets. For members who did not work after November 6, 1996 and before Proposition C passed, the market value of assets must also exceed the actuarial liability at the beginning of the year for a Supplemental COLA to be granted.

Because the probability of a Supplemental COLA depends on the current funded level of the Retirement System for certain members, the following assumptions were developed for the probability and amount of Supplemental COLA for each future year. The City has assumed that a full Supplemental COLA will be paid to all Post 1997 Retirees effective July 1, 2019. The table below shows the net assumed Supplemental COLA for members with a 2.00% Basic COLA for sample years.

The projection of benefit payments to current members for determining the discount rate includes the payment of anticipated future Supplemental COLAs.

Based on these assumptions, the Retirement System’s fiduciary net position was projected to be available to make projected future benefit payments for current members for all future years.

Projected benefit payments are discounted at the long-term expected return on assets of 7.40% to the extent the fiduciary net position is available to make the payments and at the municipal bond rate of 3.50% to the extent they are not available. The single equivalent rate used to determine the Total Pension Liability as of June 30, 2019 is 7.40%.

Assumed Supplemental COLA for Members with a 2.00% Basic COLA Fiscal years
2021 0.75 % 0.27 %
2023 0.75 0.34
2025 0.75 0.36
2027 0.75 0.37
2030+ 0.75 0.38
96 - Prop C
Before 11/6/96
or After Prop C

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

70 (Continued)

Target allocation and best estimates of geometric long-term expected real rates of return (net of pension plan investment expense and inflation) for each major asset class are summarized in the following table:

Sensitivity of Proportionate Share of the Net Pension Liability to Changes in the Discount Rate

The following presents Hetch Hetchy’s allocation of the employer’s proportionate share of the net pension liability for the SFERS Plan, calculated using the discount rate, as well as what Hetch Hetchy’s allocation of the employer’s proportionate share of the net pension liability w o u l d b e i f i t w e r e c a l c u l a t e d u s i n g a d i s c o u n t r a t e t h a t i s 1 % l o w e r o r 1 % h i g h e r t h a n t h e current rate:

(b) Other Post-Employment Benefits

Hetch Hetchy participates in a single-employer defined benefit other post-employment plan (the Plan). The Plan is maintained by the City and is administered through the City’s Health Service System. It provides post-employment medical, dent al and vision insurance benefits to eligible employees, retired employees, surviving spouse s, and domestic part ners. Health benefit provisions are established and may be amended through negotiations between the City and the respective bargaining units. The City does not issue a separate report on its other post- employment benefit plan.

GASB Statement No. 75 requires that reported re sults must pertain to li ability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Asset Class
Target
Allocation
Long-Term Expected Real
Rate of Return
Global Equity 31.0 % 5.3 %
Private Equity 18.0 8.3
Real Assets 17.0 5.4
Hedge Funds/Absolute Returns 15.0 3.9
Private Credit 10.0 5.2
Treasuries 6.0 0.9
Liquid Credit 3.0 3.6
Total 100.0
Hetchy Hetchy
Fiscal Year 2021 Water Power CleanPowerSF Total
$ 47,111 57,580 5,318 110,009
26,645 32,566 3,008 62,219
9,736 11,899 1,099 22,734
Hetchy Hetchy
Fiscal Year 2020 Water Power CleanPowerSF Total
$ 40,539 49,547 3,407 93,493
21,477 26,249 1,805 49,531
5,727 6,999 481 13,207
1% Decrease Share of NPL @ 6.40%
Share of NPL @ 7.40%
1% Increase Share of NPL @ 8.40%
1% Decrease Share of NPL @ 6.40%
Share of NPL @ 7.40%
1% Increase Share of NPL @ 8.40%
Fiscal Year 2021 Fiscal Year 2020
Valuation Date (VD) June 30, 2020 June 30, 2018 updated to June 30, 2019 Measurement Date (MD) June 30, 2020 June 30, 2019
Measurement Period (MP) July 1, 2019 to June 30, 2020 July 1, 2018 to June 30, 2019 San Francisco Health Service System Retiree Plan - Single-Employer

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

71 (Continued)

Hetch Hetchy’s proportionate share percentage of the Plan was determined based on its percentage of citywide “pay-as-you-go” contributions for the year ended June 30, 2020. Hetch Hetchy’s net OPEB liability, deferred outflows/inflows of resources related to OPEB, amortization of deferred outflows/inflows and OPEB expense to each department is based on its allocated percentage. Hetch Hetchy’s proportionate share of the City’s OPEB elements was 0.92%, of which 0.38% for Hetchy Water, 0.46% for Hetchy Power, and 0.08% for CleanPowerSF as of June 30, 2020 (measurement date). Hetch Hetchy’s proportionate share of the City’s OPEB elements was 0.99%, of which 0.42% for Hetchy Water, 0.51% for Hetchy Power, and 0.06% for CleanPowerSF as of June 30, 2019 (measurement date).

Benefits

Permanent full-time and elected employees are eligible to retire and receive post-retirement health insurance benefits when they are eligible for retirement benefits from the City and County of San Francisco’s Retirement System. The eligibility requirements are as follows:

Normal Retirement Miscellaneous Age 50 with 20 years of credited service 1 Age 60 with 10 years of credited service
Safet y Age 50 with 5 years of credited service
Disabled Retirement2 Any age with 10 years of credited service Terminated Vested 5 years of credited service at separation

1 Age 53 with 20 years of credited service, age 60 with 10 years of credited service, or age 65 for Miscellaneous members hired on or after January 7, 2012.
2 No service requirement for Safety members retiring under the industrial disability benefit or for surviving spouses/domestic partners of those killed in the line of duty.

Retiree healthcare benefits are administered by the San Francisco Health Service System and include the following:

Medical: PPO – City Health Plan (self-insured) and UHC Medicare Advantage (fully- insured)
HMO – Kaiser (fully-insured) and Blue Shield (flex-funded) Dental: Delta Dental, DeltaCare US A and United Healthcare Dental Vision: Vision benefits are provided un der the medical insu rance plans and are administered by Vision Service Plan.

Projections of the sharing of benefit related costs are based on an established pattern of practice.

Contributions

Benefits provided under the Plan are curren tly paid through “pay-as-you-go” funding.

Additionally, under the City Charter, active officers and employees of the City who commenced employment on or after January 10, 2009, shall contribute to the Retiree Health Care Trust Fund (Trust Fund) a percentage of compensation not to exceed 2% of pre-tax compensation. The City shall contribute 1% of compensation for officers and employees who commenced employment on or after January 10, 2009 until the City’s GASB Actuary has determined that the City’s portion of the Trust Fund is fully funded. At that time, the City’s 1% contribution shall cease, and officers and employees will each contribute 50% of the maximum 2% of pre-tax compensation.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

72 (Continued)

Starting July 1, 2016, active officers and employees of the City who commenced employment on or before January 9, 2009, shall contribute 0.25% of pre-tax compensation into the Trust Fund.

Beginning on July 1st of each subsequent year, the active officers and employees of the City who commenced employment on or before January 9, 2009, shall contribute an additional 0.25% of pre-tax compensation up to a maximum of 1%. Starting July 1, 2016, the City shall contribute

0.25% of compensation into the Trust Fund for each officer and employee who commenced employment on or before January 9, 2009. Beginning on July 1 st of each subsequent year, the City shall contribute an additional 0.25% of compensation, up to a maximum of 1% for each officer and employee who commenced employment on or before January 9, 2009. When the City’s Actuary has determined that the City’s portion of the Trust Fund is fully funded, the City’s 1% contribution shall cease, and officers and employees will each contribute 50% of the maximum 1% of pre-tax compensation. Additional or existing contribution requirements may be established or modified by amendment to the City’s Charter.

Fiscal Year 2021

For the fiscal year ended June 30, 2021, the City ’s funding was based on “pay-as-you-go” plus a contribution of $39,555 to the Retiree Healthcare Trust Fund. The “pay-as-you-go” portion paid by the City was $206,439 for a total contribution of $245,994 for the fiscal year ended June 30, 2021. Hetch Hetchy’s proportionate share of the City’s contributions for fiscal year 2021 were $2,252: $929 for Hetchy Water, $1,136 for Hetchy Power, and $187 for CleanPowerSF.

Fiscal Year 2020

For the fiscal year ended June 30, 2020, the City ’s funding was based on “pay-as-you-go” plus a contribution of $39,518 to the Retiree Healthcare Trust Fund. The “pay-as-you-go” portion paid by the City was $196,445 for a total contribution of $235,963 for the fiscal year ended June 30, 2020. Hetch Hetchy’s proportionate share of the City’s contributions for fiscal year 2020 were $2,321: $985 for Hetchy Water, $1,204 for Hetchy Power, and $132 for CleanPowerSF.

OPEB Liabilities, OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB

Fiscal Year 2021

As of June 30, 2021, the City reported net OPEB liabilities related to the Plan of $3,823,334.

Hetch Hetchy’s proportionate share of the City’s net OPEB liability as of June 30, 2021 was $35,006: $14,444 for Hetchy Water, $17,653 for Hetchy Power, and $2,909 for CleanPowerSF.

For the year ended June 30, 2021, the City’s recognized OPEB expense was $320,684.

Amortization of the City’s deferred outflows an d inflows is included as a component of OPEB expense. Hetch Hetchy’s proportionate share of the City’s reduction of OPEB expense was $1,859: $1,480 for Hetchy Water and $1,809 for Hetchy Power, offset by an increase of $1,430 expense for CleanPowerSF.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

73 (Continued)

As of June 30, 2021, Hetch Hetchy reported its proportionate share of the City’s deferred outflows and inflows of resources related to OPEB from the following sources:

Fiscal Year 2020

As of June 30, 2020, the City reported net OPEB liabilities related to the Plan of $3,915,814.

Hetch Hetchy’s proportionate share of the City net OPEB liability as of June 30, 2020 was $38,530: $16,350 for Hetchy Water, $19,983 for Hetchy Power, and $2,197 for CleanPowerSF.

For the year ended June 30, 2020, the City’s recognized OPEB expense was $330,673.

Amortization of the City’s deferred outflows an d inflows is included as a component of OPEB expense. Hetch Hetchy’s proportionate share of the City’s OPEB expense was $3,595: $708 for Hetchy Water, $866 for Hetchy Power, and $2,021 for CleanPowerSF.

Hetchy Hetchy Hetchy Hetchy
Water Power CleanPowerSF Total Water Power CleanPowerSF Total Contributions subsequent to measurement date $ 929 1,136 187 2,252 —    —    —    — Differences between expected and actual
experience 524 640 106 1,270 2,070 2,529 417 5,016 Changes in assumptions 731 894 147 1,772 —    —    —    — Net difference between projected and actual
earnings on plan investments
9 12 2 23 —    —    —    —
Change in proportion 1,532 1,870 —    3,402 15 19 1,496 1,530 Total $ 3,725 4,552 442 8,719 2,085 2,548 1,913 6,546 Schedules of Deferred Outflows and Inflows of Resources Deferred Outflows of Deferred Inflows of
Resources Resources
Fiscal Hetchy Hetchy
years Water Power CleanPowerSF Total
2022 $ 90 110 (328) (128) 2023 96 117 (326) (113) 2024 94 116 (326) (116) 2025 99 120 (326) (107) 2026 245 299 (222) 322 Thereafter 87 106 (130) 63 Total $ 711 868 (1,658) (79) Deferred Outflows/(Inflows) of Resources

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

74 (Continued)

As of June 30, 2020, Hetch Hetchy reported its proportionate share of the City’s deferred outflows and inflows of resources related to OPEB from the following sources:

Hetchy Hetchy Hetchy Hetchy
Water Power CleanPowerSF Total Water Power CleanPowerSF Total Contributions subsequent to measurement date $ 985 1,204 132 2,321 —    —    —    — Differences between expected and actual
experience 694 849 93 1,636 1,150 1,406 155 2,711 Changes in assumptions 331 405 45 781 —    —    —    — Net difference between projected and actual
earnings on plan investments —    —    —    —    26 31 3 60 Change in proportion 322 392 —    714 19 24 1,053 1,096 Total $ 2,332 2,850 270 5,452 1,195 1,461 1,211 3,867 Schedules of Deferred Outflows and Inflows of Resources Deferred Outflows of Deferred Inflows of
Resources Resources
Fiscal Hetchy Hetchy
years Water Power CleanPowerSF Total
2021 $ (8) (9) (195) (212) 2022 (8) (9) (195) (212) 2023 (1) (2) (195) (198) 2024 (3) (3) (195) (201) 2025 2 2 (195) (191) Thereafter 170 206 (98) 278 Total $ 152 185 (1,073) (736) Deferred Outflows/(Inflows) of Resources

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

75 (Continued)

Actuarial Assumptions

Fiscal Year 2021

A summary of the actuarial assumptions and methods used to calculate the total OPEB liability as of June 30, 2020 (measurement year) is provided below:

The mortality rates in the base tables are projected generationally from the base year using the MP-2019 projection scale.

Key Actuarial Assumptions
Valuation Date June 30, 2020
Measurement Date June 30, 2020
Actuarial Cost Method The Entry Age Actuarial Cost Method is used to measure the Plan's Total OPEB Liability Healthcare Cost Trend Rates Pre-Medicare trend starts at 4.00% in 2022, 7.00% in 2023, trending down to ultimate rate of 4.04% in 2075 Medicare trend starts at 1.00% in 2022, 7.50% in 2023, trending down to ultimate rate of 4.04% in 2075 10-County average trend starts at 4.5% in 2022, 5.50% in 2023, trending down to ultimate rate of 4.04% in 2075 Vision and expenses trend remains a flat 3.0% for all years Expected Rate of Return on Plan Assets 7.00%
Salary Increase Rate Wage Inflation Component: 3.25%
Additional Merit Component (dependent on years of service):

Police: 0.50% - 7.50%
Fire: 0.50% - 14.00%
Muni Drivers: 0.00% - 16.00%
Craft: 0.50% - 3.75%
Misc: 0.30% - 5.50%
Inflation Rate Wage Inflation: 3.25% compounded annually Consumer Price Inflation: 2.50% compounded annually
Mortality Tables
Non-Annuitants
Published Table Male Female
Miscellaneous PubG-2010 Employee 0.834 0.866
Safety PubS-2010 Employee 1.011 0.979
Healthy Retirees
Published Table Male Female
Miscellaneous PubG-2010 Employee 1.031 0.977
Safety PubS-2010 Employee 0.947 1.044
Disabled Retirees
Published Table Male Female
Miscellaneous PubG-2010 Employee 1.045 1.003
Safety PubS-2010 Employee 0.916 0.995
Beneficiaries
Published Table Male Female
Miscellaneous PubG-2010 Employee 1.031 0.977
Safety PubG-2010 Employee 1.031 0.977
Base mortality tables are developed by multiplying a published table by an adjustment factor developed in SFERS experience study for the period ending June 30, 2019.

Adjustment Factor
Adjustment Factor
Adjustment Factor
Adjustment Factor

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

76 (Continued)

Fiscal Year 2020

A summary of the actuarial assumptions and methods used to calculate the total OPEB liability as of June 30, 2019 (measurement year) is provided below:

The mortality rates in the base tables are projected generationally from the base year using the modified version of the MP-2015 projection scale. The scale was modified using the Society of Actuaries’ model implementation tool with ra tes converging to the ultimate rate in 2017 (instead of 2029) and an ultimate rate of improvement of 0.85% (instead of 1.00%) up to age 85 decreasing to 0.70% (instead of 0.85%) at age 95.

Key Actuarial Assumptions
Valuation Date June 30, 2018 updated to June 30, 2019
Measurement Date June 30, 2019
Actuarial Cost Method The Entry Age Actuarial Cost Method is used to measure the Plan's Total OPEB Liability Healthcare Cost Trend Rates Pre-Medicare trend starts at 6.35% in 2021 and trends down to ultimate rate of 3.93% in 2076 Medicare trend starts at 7.00% in 2021 and trends down to ultimate rate of 3.93% in 2076 10-County average trend starts at 5.82% in 2021 and trends down to ultimate rate of 3.93% in 2076 Vision and expenses trend remains a flat 3.50% for all years Expected Rate of Return on Plan Assets 7.40%
Discount Rate 7.40%
Salary Increase Rate Wage Inflation Component: 3.50%
Additional Merit Component (dependent on years of service):

Police: 1.50% - 8.00%
Fire: 1.50% - 15.00%
Muni Drivers: 0.00% - 15.00%
Craft: 0.00% - 3.50%
Misc: 0.00% - 5.25%
Inflation Rate Wage Inflation: 3.50% compounded annually Consumer Price Inflation: 2.75% compounded annually
Mortality Tables
Non-Annuitant - CalPERS employee mortality tables without scale BB projection Gender Adjustment Factor Base Year
Female 0.918 2009
Male 0.948 2009
Healthy Annuitants - CalPERS healthy annuitant mortality table without scale BB projection Gender Adjustment Factor Base Year
Female 1.014 2009
Male 0.909 2009
Miscellaneous Disabled Annuitants - RP-2014 Disabled Retiree Tables without MP-2014 projection Gender Adjustment Factor Base Year
Female 1.066 2006
Male 0.942 2006
Safety Disabled Annuitants - CalPERS industrial disability mortality table without scale BB projection Gender Adjustment Factor Base Year
Female 0.983 2009
Male 0.909 2009
Base mortality tables are developed by multiplying a published table by an adjustment factor developed in SFERS experience study for the period ending June 30, 2014.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

77 (Continued)

Sensitivity of Liabilities to Changes in the Healthcare Cost Trend Rate and Discount Rate

The following presents Hetch Hetchy’s proportionate share of the City’s net OPEB liability calculated using the healthcare cost trend rate, as well as what its allocation of the City’s net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1% lower or 1% higher than the current rate as of June 30, 2021 and June 30, 2020:

Discount Rate

Fiscal Year 2021

The discount rate used to measure the total OPEB liability as of June 30, 2020 was 7.00%.

Based on the assumption that plan member contributions will continue to be made at the rates specified in the Charter, it was determined that the Plan’s projected fiduciary net position will be greater than or equal to the benefit payments projected for each future period. As such, the long-term expected rate of return on plan inve stments was applied to all periods of projected benefit payments to determine the total OPEB liability.

The long-term expected rate of return on OPEB plan investments was 7.00% based on expected future returns and historical returns experienced by the Trust Fund. Expected future returns were determined based on 10-year and 20-year capital market assumptions for the Trust Fund’s asset allocation.

Hetchy Hetchy
Water Power CleanPowerSF Total 2021
1% Decrease $ 12,488 15,264 2,515 30,267
Hea thcare Trend 14,444 17,653 2,909 35,006
1% Increase 16,992 20,767 3,422 41,181
Hetchy Hetchy
Water Power CleanPowerSF Total 2020
1% Decrease $ 14,150 17,295 1,901 33,346
Hea thcare Trend 16,350 19,983 2,197 38,530
1% Increase 19,080 23,320 2,563 44,963

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

78 (Continued)

Target allocation for each major asset class and best estimates of geometric real rates of return are summarized in the following table:

The asset allocation targets summarized above have a 20-year return estimate of 6.90%, which was weighted against a 10-year model estimating a 6.93% return, resulting in the ultimate long- term expected rate of return of 7.00%.

The following presents Hetch Hetchy’s proportionate share of the City’s net OPEB liability calculated using the discount rate, as well as what Hetch Hetchy’s proportionate share of the City’s net OPEB liability would be if it were calculated using a discount rate that is 1% lower or 1% higher than the current rate:

Fiscal Year 2020

The discount rate used to measure the total OPEB liability as of June 30, 2019 was 7.40%.

The long-term expected rate of return on OPEB plan investments was 7.40% based on expected future returns and historical returns experienced by the Trust Fund. Expected future returns were determined based on 10-year and 20-year capital market assumptions for the Trust Fund’s asset allocation.

Asset Class
Target
Allocation
Equities
U.S. Large Cap 28.0 % 8.4 % U.S. Small Cap 3.0 9.8
Developed Market Equity (non-U.S.) 15.0 9.6
Emerging Market Equ ty 13.0 11.7
Credit
Bank Loans 3.0 4.9
High Yield Bonds 3.0 4.9
Emerging Market Bonds 3.0 4.8
Rate Securities
Investment Grade Bonds 9.0 2.2
Long-term Government Bonds 4.0 3.1
Short-term Treasury Inflation-Protected Securities (TIPS) 4.0 1.9 Private Markets
Private Equity 5.0 12.5
Core Private Real Estate 5.0 6.4
Risk Mitigating Strategies
G Global Macro 5.0 4.1
Total 100.0 %
Long-term
Expected Real
Rate of Return
Hetchy Hetchy
Water Power CleanPowerSF Total
1% Decrease 6.00% $ 16,761 20,486 3,376 40,623
Discount Rate 7.00% 14,444 17,653 2,909 35,006
1% Increase 8.00% 12,551 15,341 2,528 30,420

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

79 (Continued)

Target allocation for each major asset class and best estimates of geometric real rates of return are summarized in the following table:

The asset allocation targets summarized above have a 20-year return estimate of 8.30%, which was weighted against a 10-year model estimating a 7.50% return, resulting in the ultimate long- term expected rate of return of 7.40%.

The City issues a publicly available financial report that includes the complete note disclosures and required supplementary information related to the City’s post-employment health care obligations. The report may be obtained by writing to the City and County of San Francisco, Office of the Controller, 1 Dr. Carlton B. Goodlett Place, Room 316, San Francisco, California 94102, or by calling (415) 554-7500.

(11) Related Parties

(a) Hetch Hetchy
Various common costs incurred by the SFPUC are allocated among Hetch Hetchy, Water, and Wastewater Enterprises. The allocations are based on the SFPUC management’s best estimate and may change from year to year depending on the activities incurred by each Enterprise and the information available. For the years ended June 30, 2021 and 2020, the SFPUC allocated $20,099 or 20.5% and $18,948 or 20.5% respectively, in administrative costs including COVID- 19 Project expenses, which is presented in the financial statements under various expense categories. These costs are then allocated to Hetchy Water, Hetchy Power, and CleanPowerSF in the Hetch Hetchy financial statements, using the periodically reviewed department overhead allocation model.

Asset Class
Target
Allocation
Equities
U.S. Equities 41.0 % 8.1 % Developed Market Equity (non-U.S.) 20.0 8.5 Emerging Market Equity 16.0 10.4
Credit
High Yield Bonds 3.0 6.5
Bank Loans 3.0 6.1
Emerging Market Bonds 3.0 5.2
Rate Securities
Investment Grade Bonds 9.0 3.9
Treasury Inflation Protected Securities 5.0 3.6 Total 100.0 %
Long-term
Expected Real
Rate of Return
Hetchy Hetchy
Water Power CleanPowerSF Total
1% Decrease 6.40% $1 8 , 8 7 9 23,074 2,536 44,489
Discount Rate 7.40% 16,350 19,983 2,197 38,530
1% Increase 8.40% 14,283 17,457 1,919 33,659

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

80 (Continued)

The City performs certain administrative servic es such as maintenance of accounting records and investment of cash for all fund groups within the City. The various funds are charged for these services based on the City’s indirect cost allocation plan. Some City departments provide direct services such as engineering, purchasing, legal, data processing, telecommunication, and human resources to Hetch Hetchy and charge amounts designed to recover those departments’ costs. These charges totaling approximately $12,582 and $11,007 for the years ended June 30, 2021 and 2020, respectively, have been included in services provided by other departments in the accompanying financial statements.

SFPUC’s 75-year lease agreement with the San Francisco Recreation and Parks Department, for the use of parking spaces for its fleet of vehicles at the Civic Center Garage, commenced on February 1, 2011. Total payment under this agre ement is $6,274, which was fully made as of fiscal year 2015. The expenses and prepayments among the three SFPUC Enterprises are based on 525 Golden Gate occupancy. As of June 30, 2021, Hetch Hetchy’s allocable shares of expenses and prepayment were $17 and $922, respectively, and as of June 30, 2020 were $18 and $939, respectively.

(b) Hetchy Water
For the years ended June 30, 2021 and 2020, the SFPUC allocated $4,585 or 4.7%, and $4,326 or 4.7%, respectively, in administrative costs including COVID- 19 Project expense to Hetchy Water.

The Water Enterprise purchases water from Hetchy Water. Included in the operating revenues are the water assessment fees of $44,149 and $34,585 for the years ended June 30, 2021 and 2020, respectively. The water assessment fees represent a recovery to fund upcountry, water-related costs that are not otherwise funded through Hetchy water-related revenue or Water revenue bonds.

Hetchy Water received $16,000 and $14,000 for the years ended June 30, 2021 and 2020, respectively, from the Water Enterprise to fund upcountry projects.

Hetchy Water had no receivable or payable with other City departments as of June 30, 2021. As of June 30, 2020, Hetchy Water had $240 in payable and $104 in receivable with the City Attorney’s Office for legal services.

(c) Hetchy Power
For the years ended June 30, 2021 and 2020, the SFPUC allocated $13,202 or 13.5%, and $12,581 or 13.6% respectively, in administrati ve costs including COVID-19 Project expense to Hetchy Power.

As of June 30, 2021, and 2020, operating revenues in sales of power to departments within the City were $82,129 and $99,797, respectively.

The Water Enterprise also purchases electricity and gas from Hetchy Power. This amount totaled $9,790 and $9,909 for the years ended June 30, 2021 and 2020, respectively.

The Wastewater Enterprise purchases electricity and gas from Hetchy Power. This amount totaled $10,122 and $10,760 for the years ended June 30, 2021 and 2020, respectively.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

81 (Continued)

The Low Carbon Fuel Standard (LCFS) program is a regulatory program overseen by the California Air Resources Board (CARB). The LCFS program seeks to reduce the carbon intensity of California’s transportation fuel by 20% by 2030. Transportation fuel suppliers can achieve this goal by either reducing the carbon intensity of their fuels or purchasing LCFS credits from other fuel suppliers that have a lower carbon intensity. In 2017, the San Francisco Municipal Transportation Agency (SFMTA) joined the LCFS program, signing up its transit fleet of electric buses, cable cars, and light rail vehicles and generating LCFS credits. Through a Memorandum of Understanding (MOU) with SFMTA, approved by the SFPUC Commission in Resolution 17- 0199, net proceeds from the sale of LCFS cred its would be shared 50/50 between SFMTA and Hetchy Power. Under the MOU, Hetchy Power would take responsibility for selling the LCFS credits. In Ordinance 0199-19, the Board of Supervisors authorized Hetchy Power to establish the Low Carbon Fuel Standard Fund to account for the revenue and expenditure from the sale of LCFS credits. The Ordinance also allowed Hetchy Power to sell LCFS credits on behalf of other City agencies. During fiscal year ended June 30, 2021, Hetchy Power received total payments of $2,362 for the LCSF credits, of which $1,181 or 50% was reallocated to SFMTA and the remaining portion was reported as other non-operating revenues on the Statements of Revenues, Expenses, and Change in Net Position . During fiscal year ended June 30, 2020, Hetchy Power received total payments of $13,840 for the LCSF credits, of which $6,920 or 50% was reallocated to SFMTA and the remaining portion was reported as other non-operating revenues on the Statements of Revenues, Expenses, and Change in Net Position.

Hetchy Power facilitates all electric and gas service connections between PG&E and City departments. In this capacity, Hetchy Power facilitates and coordinates the terms and payment for the service connections that are performed by PG&E. As of June 30, 2021 and 2020, there was no outstanding amount due from City departments related to this work. In the event Hetchy Power received money from PG&E after project completion, monies are to be refunded to the City departments for their respective credits.

Due from other City departments was $12,40 6 and $13,369 with elimination of $0 and $1,800 working capital loan to CleanPowerSF for the years ended June 30, 2021 and 2020, respectively. Hetchy Power serves as the City’s department for energy efficiency projects and maintains the Sustainable Energy Account (SEA) (formerly known as the Mayor’s Energy Conservation Account) fund to sponsor and financially support such projects at various City departments. In this role, Hetchy Power may secure low-interest financing to supplement funds available in the SEA fund. At June 30, 2021 and 2020, projects completed or under way throughout the City amounted to $4,556 and $5,062, respectively, and are recorded as due from other government agencies.

Hetch Hetchy funded a project for the Treasure Island Development Authority and recorded a receivable in connection with an upgraded submarine power cable for the Treasure Island as due from other government agencies. This amount totaled $6,627 and $6,581 for the years ended June 30, 2021 and 2020, respectively.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

82 (Continued)

As of June 30, 2021 and 2020, Hetchy Power recorded receivables of $739 and $847, respectively, due from Wastewater Enterprise for its share of costs relating to SFPUC Headquarters Living Machine System. Details of due from other City departments are as follows:

As of June 30, 2021, Hetchy Power had payables of $369 to the Port of San Francisco for Pier 70 Shoreside Power Project. As of June 30, 2020, Hetchy Power had payables in the amount of $600, of which $369 to the Port of San Francisco for Pier 70 Shoreside Power Project and $231 to the City Attorney’s Office for legal services.

(d) CleanPowerSF
For the years ended June 30, 2021 and 2020, the SFPUC allocated $2,312 or 2.4%, and $2,041 or 2.2%, respectively, in administrative costs to CleanPowerSF.

As of June 30, 2021, and 2020, operating revenue in sales of power to Hetchy Power were $1,072 and $694, respectively. Operating expenses in purchase of power from Hetchy Power were $2,456 and $339, respectively. Wholesale sales of energy, capacity and/or other electric power related products may be made between the CleanPowerSF and Hetchy Power, when available. CleanPowerSF and Hetchy Power transa c t f o r s u c h p r o d u c t s a t p r e v a i l i n g m a r k e t prices.

CleanPowerSF received program support services from Hetchy Power. This amount totaled $2,224 and $1,685 for the years ended June 30, 2021 and 2020, respectively.

CleanPowerSF had $0 and $9 in payables due to the other City departments for legal services as of June 30, 2021 and 2020, respectively.

(12) Risk Management

The Enterprise’s Risk Management program includes both self-insured (i.e., self-retention) and insured exposures at risk. Risk assessments and purchasing of insurance coverage are collaboratively coordinated by SFPUC Enterprise Risk Management and the City’s Office of Risk Management. With certain exceptions, the City and the Enterprise’s general approach is to first evaluate the exposure at risk for self-insurance. Based on this analysis, inte rnal mitigation strategies and financing through a self-retention mechanism are generally more economical, as the SFPUC in coordination with the City Attorney’s Office administers, adjusts, settles, de fends, and pays claims from budgeted resources (i.e., pay-as-you-go fund). When economically more viable or when required by debt financing covenants, the Enterprise obtains commercial insurance. At least annually, the City actuarially determines general liability and workers’ compensation risk exposures. The Enterprise does not maintain commercial earthquake coverage, with certain minor exceptions, such as a sub-limit for fire- sprinkler leakage due to earthquake under the SFPU C Property Insurance Program. In the past three 2021 2020
Treasure Island Development Authority $ 6,627 6,581
SEA-related project: Moscone Center 4,556 5,062
Wastewater - 525 Golden Gate Headquarters Project 739 847 San Francisco Recreation and Park 419 524
City Attorney's Office — 331
Department of Public Works 65 24
Total due from other City departments 12,406 13,369
Less: current portion (7,413) (1,074)
Long-term portion as of June 30, net $ 4,993 12,295

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

83 (Continued)

years, there were no settlements that exceeded insurance coverage.

(a) General Liability
Through coordination with the Controller’s Office and City Attorney’s Office, the general liability risk exposure is actuarially determined and is addressed through pay-as-you-go funding as part of the budgetary process. Associated costs and estimates are recorded as expenses as required under GAAP for financial statement purposes for both the Enterprise and the City and County of San Francisco’s Annual Comprehensive Financial Report. The claim expense allocations are determined based on actuarially determined anticipated claim payments and the projected timing of disbursement.

The changes for the general liability (damage claims) for the years ended June 30, 2021 and 2020 are as follows:

(b) Workers’ Compensation
The City actuarially determines and allocates workers’ compensation costs to the Enterprise according to a formula based on the following: (i) the dollar amount of claims; (ii) yearly projections of payments based on historical expe rience; and (iii) the size of the Enterprise’s payroll. The administration of workers’ compensation claims and payouts are handled by the Workers’ Compensation Division of the City’s Department of Human Resources. Statewide workers’ compensation reforms have resulted in budgetary savings in recent years. The City continues to develop and implem ent improved programs, such as return-to-work programs, to (a) General Liability Self-Insured
(b) Workers' Compensation Self-Insured Through City-wide Pool (c) Property Purchased Insurance and Self-Insured
(d) Public Officials Liability Purchased Insurance
(e) Employment Practices Liability Purchased Insurance
(f) Cyber Liability Purchased Insurance
(g) Crime Purchased Insurance
(h) Electronic Data Processing Purchased Insurance and Self-Insured (i) Surety Bonds Purchased and Contractual Risk Transfer (j) Errors and Omissions Purchased and Contractual Risk Transfer (k) Builders' Risk Contractual Risk Transfer
Risk Coverage Approach
Beginning Claims and changes Claims End of
Fiscal years of year in estimates paid year
Hetch Hetchy
2,886$ 4,843 (6,090) 1,639
2,284 10,039 (9,437) 2,886
Hetchy Water
558$ 478 (511) 525
224 550 (216) 558
Hetchy Power
2,222$ 4,212 (5,326) 1,108
2,053 9,182 (9,013) 2,222
CleanPowerSF
106$ 153 (253) 6
7 307 (208) 106 2020
2021
2021
2021
2021
2020
2020
2020

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

84 (Continued)

lower or mitigate the growth of workers’ co mpensation costs. Programs include accident prevention, investigation, and du ty modification for injured employees with medical restrictions so return to work can occur as soon as possible.

The changes for the workers’ compensation liabilities for the years ended June 30, 2021 and 2020 are as follows:

*CleanPowerSF had no workers’ compensation liabilities as of June 30, 2021 and 2020. (c) Property
The Enterprise’s property risk management approach varies depending on whether the facility is currently under construction, the property is part of revenue-generating operations, the property is of high value, or is mission-critical in nature . During the course of construction, the Enterprise requires each contractor to provide its own insu rance, while ensuring the full scope of work is covered with satisfactory levels to limit the Enterprise’s risk exposure. Once construction is complete, the Enterprise performs an assessment to determine whether liability/loss coverage will be obtained through the commercial property policy or self-insurance. The majority of property scheduled in the insurance program is for (1) revenue generating facilities, (2) debt- financed facilities, (3) mandated coverage to meet statutory requirements for bonding of various public officials, or (4) high-value, mission-critical property or equipment.

(d) Public Officials Liability
All Enterprise public officials with financial ov ersight responsibilities are provided coverage through a commercial Public Officials Liability Policy.

(e) Employment Practices Liability
An Employment Practices Liability Policy is retained to protect against employment-related claims and liabilities.

(f) Cyber Liability
A Cyber Liability Policy is retained to protect against cyber-related claims and liabilities.

(g) Crime
The Enterprise also retains a Commercial Crime Policy, in lieu of bonding its employees, to provide coverage against liabilities or losses due to third-party crime or employee fraud.

Beginning Claims and changes Claims End of
Fiscal years of year in estimates paid year
Hetch Hetchy*
3,387$ 113 (262) 3,238 3,499 336 (448) 3,387 Hetchy Water
1,187$ 18 (85) 1,120 1,238 75 (126) 1,187 Hetchy Power
2,200$ 95 (177) 2,118 2,261 261 (322) 2,200 2020 2021
2020
2021
2020
2021

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

85 (Continued)

(h) Electronic Data Processing
The Electronic Data Processing policy protects selected high-value electronic property in case of damage or loss.

(i) Surety Bonds
Bonds are required in most phases of the public utilities construction contracting process for such phases as bid, performance, and payment or maintenance. Additionally, bonds may be required in other contracts where goods or services are provided to ensure compliance with applicable terms and conditions such as warranty.

(j) Errors and Omissions
Errors and omissions, also known as Profession al Liability, are commonly transferred through contract to the contracted professional, or retained through self insurance on a case-by-case basis depending on the size, complexity, or sc ope of construction or professional service contracts. Examples of such contracts are inclusive of services provided by engineers, architects, design professionals, and other licensed or certified professional service providers.

(k) Builders’ Risk
Builders’ Risk policies of insurance are required to be provided by the contractor on all construction projects for the full value of construction. (l) Energy Risk Management
Similar to other electric utilities with a heavy reliance on hydroelectric generation, Hetch Hetchy is exposed to risks that could impact its ability to generate net revenues to fund operating and capital investment activities. Hydroelectric generation facilities in the Sierra Nevada are the primary source of electricity for Hetch Hetchy. For this reason, the Hetch Hetchy revenues can vary with watershed hydrology, unexpected generator outages, and market prices for energy.

Given the inherent risk for all hydroelectric generation, several risk management interventions have been developed to mitigate exposure.

(m) Enterprise Risk Management
The Power Enterprise adopted the ISO 31000 standard for Hetchy Power and the CleanPowerSF program as the framework for implementing Enterprise Risk Management (ERM). The Enterprise utilizes this framework to systematically and proactively identify and mitigate risks that threatens its business objectives. Since not all ri sks are insurable or transferable contractually, the ERM program provides an additional method to manage risks and protect the Enterprise’s current and expanding business allowing for increa sed operational resiliency and the ability to capitalize on opportunities.

(13) Commitments and Litigation

(a) Commitments
As of June 30, 2021, and 2020, Hetch Hetchy, has outstanding commitments with third parties of $143,404 and $103,508, respectively, for various capital projects and other purchase agreements for materials and services.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

86 (Continued)

Hetchy Water

To meet certain requirements of the Don Pedro Reservoir operating license, the City entered into an agreement with the Modesto Irrigation District (MID) and Turlock Irrigation District (TID) in which the Districts would be responsible for a n i n c r e a s e i n w a t e r f l o w r e l e a s e s f r o m t h e reservoir in exchange for annual payments from the City, which are included in Hetchy Water’s operating expenses. The payment amounts were $5,069 and $4,979 for fiscal years 2021 and 2020, respectively. The payments are to be made for the duration of the license, but may be terminated with one year’s prior written notice after 2001. The City and the Districts have also agreed to monitor the fisheries in the lower Tuolumne River for the duration of the license. A maximum monitoring expense of $1,400 is to be shared between the City and the Districts over the term of the license. The City’s share of the monitoring costs is 52%, while the Districts are responsible for 48% of the costs.

Hetchy Power

Wholesale Distribution Tariff (WDT) and Key Operating Agreements for Grid Access

Upon expiration of the City’s previous Interconnection Agreement with PG&E, the City began taking service in 2015 under the Wholesale Distribution Tariff (WDT) for distribution service and under the CAISO Open-Access Transmission Tariff for transmission service. The FERC-regulated Wholesale Distribution Tariff is implemented by PG&E through the City specific Service Agreements and Interconnection Agreements. The terms of these agreements have been in contention since the effective date. The City continues to negotiate with PG&E and, where necessary, file complaints and protests at FERC. In September 2020, PG&E filed a revised WDT.

Under the terms of the new WDT, the City would pa y substantially higher rates, at least twice to potentially four times the current charges, and be required to install costly and inefficient equipment not needed for technical, safety or reliability of operations. In addition, Hetchy Power would no longer be allowed to connect to the “network” grid in the center of San Francisco; have new secondary interconnections; and/or serve an y small, typically unmetered loads, such as streetlights, traffic signal and bus shelters.

Staff prepare regular reporting to the Board of Supervisors outlining on-going disputes with PG&E over project requirements, costs and delays . During fiscal years 2021 and 2020, Hetchy Power purchased distribution services for $8,868 and $9,270, respectively, from PG&E under the terms of the Service Agreements and Interconnection Agreements that implement the WDT.

The City continues to litigate and dispute these terms at FERC and in the court systems; and pursue the purchase of the electric grid in San Francisco.

Western System Power Pool and other Market Purchases and Sales

H e t c h y P o w e r m a y p u r c h a s e o r s e l l e n e r g y a nd other related products (such as ancillary services, spinning reserves, resource adequacy products, and congestion revenue rights) with different market entities through the Western System Power Pool (WSPP) and the CAISO. During fiscal years 2021 and 2020, Hetchy Power purchased $0 and $2,041 of power and other related products, respectively. Sales of excess po wer, after meeting Hetch Hetchy’s obligations, were $469 or 110,043 MWh for 2021 and $3,105 or 134,574 MWh for 2020, respectively.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

87 (Continued)

Power Purchase Agreement (PPA)

Hetchy Power (Buyer) purchases energy, capacity, and environmental attributes from a local solar photovoltaic project located at Sunset Reservoir (the facility) pursuant to the 2009 25-year PPA with SFCity1, LP, owned by Duke Energy (Seller). In November 2010, the facility commenced commercial operation and began to provide Hetchy Power energy generated by the facility.

The PPA sets the starting purchase price of generated energy at $235/MWh, increasing by 3% each year throughout the term of the agreement, an d it is expected that the facility will generate 6,560 MWh per year. In fiscal year 2021, the facility generated 6,598 MWh and the rate was at $324/MWh. In the event that the facility genera tes more energy than expected due to better than normal meteorological conditions, the PPA requires the Buyer to purchase all the excess energy but generation in excess o f 1 2 0 % o f e x p e c t e d i s p u r c h a s e d a t n o c o s t . T h e P P A a l s o requires the Seller to generate a minimum amount of energy from the facility annually. If energy production falls below 50% of expected, the Seller must provide replacement power, and if energy falls below 90% of expected, the price for energy generated is lowered. In fiscal years 2021 and 2020, purchases of energy under the Agreement were $2,127, or 6,598 MWh, and $2,135, or 6,877 MWh, respectively.

CleanPowerSF

CleanPowerSF began serving customers in May 20 16 and entered into contracts with Calpine Energy Services L.P. (Calpine) and Shiloh I Wind Project LLC (Shiloh) to purchase renewable and conventional energy and resource adequacy capaci ty to meet its retail sales obligations. Both contracts feature 10-year master agreements under which multiple transactions may be executed. Calpine did not have any reserve balance requirement in fiscal years 2021 and 2020.

Since its launch, CleanPowerSF has added mult iple additional short- term and medium-term contracts with multiple counterparties pursuant to master agreements, including the WSPP Master Agreement, to purchase renewable, carbon-free and conventional energy and resource adequacy capacity, as well as long-term contracts for renewable energy and capacity with renewable energy developers sPower, Terra-Gen, NextEra and EDF Renewables. These contracts have been entered to allow CleanPowerSF to both meet its existing retail sales obligations and to support future retail sales from the citywide enrollment into the CleanPowerSF program. Citywide enrollment was substantively completed with the enrollment of residential accounts in April 2019. The total power purchase cost, net of wholesale sales, equaled $188,533 and $174,432 in fiscal years 2021 and 2020, respectively.

CleanPowerSF entered into a contract with Noble Americas Energy Solutions in November 2015 for a three-year term, not to exceed $5,600 to provide data management, billing administration and customer care services. On December 1, 2016, Noble Americas Energy Solutions was acquired by Calpine Corporation and was renamed Calpine Energy Solutions. Subsequently, CleanPowerSF’s contract was assigned to Calpine Energy Solutions under its new name and ownership. In August 2018, CleanPowerSF exercised its option under the contract to extend the term for three years, through October 31, 2021, and increased the contract’s not-to-exceed value to $18,769. During fiscal years 2021 and 2020, amounts paid were $6,664 and $6,240, respectively.

HETCH HETCHY WATER AND POWER AND CL

EANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)
88 (Continued)
CleanPowerSF Power Purcha
se Agreement (PPA)
In November 2020, CleanPowerSF executed a Power and Storage Purchase Agreement to purchase solar product and storage product from a solar powered generation facility and battery storage facility located at Livermore pursuant to the 25-year PPA with IP Aramis, LLC (Seller). As of June 30, 2021, CleanPowerSF received cash collateral of $9,000 for Development Assurance and Performance Assurance from the Seller.

CleanPowerSF Guarantee
In March 2018, CleanPowerSF entered into a five-year, $75,000 Credit Agreement with JPMorgan Chase Bank, National Association (“Bank”) to provide letters of credit or loans from the Bank to guarantee certain power purchase agreement payment obligations of CleanPowerSF and to meet working capital needs, if necessary. The Credit Agreement is secured by CleanPowerSF’s net revenues; there is no pledge of, or lien on net revenues that ranks senior to the obligations under the Credit Agreement. The Bank issued letters of credit in the face amounts totaling $13,810 and $17,985 for fiscal years ending June 30, 2021 and 2020, respectively. CleanPowerSF did not draw on the Credit Agreement during fiscal years 2021 and 2020. Accordingly, the uncommitted credit capacity under the Credit Agreement was $61,190 and $57,015 during fiscal years 2021 and 2020, respectively.

Financial covenants include that CleanPowerSF maintain a Debt Service Coverage Ratio as defined in the Credit Agreement of not less than 1.05 for each fiscal quarter, as determined for the four consecutive fiscal quarter periods ended on the last day of such fiscal quarter. As of June 30, 2021, CleanPowerSF was not in complian ce with this financial covenant as calculated for the four consecutive fiscal quarters ended on such date, resulting in a covenant event of default under the Credit Agreement. In connection with subsequent amendments to the Credit Agreement, JPMorgan Chase granted a waiver of such event of default for the period ended June 30, 2021. See Note 14(a), Subsequent Events, for additional details. CleanPowerSF was in compliance with other covenants and requirements of the Credit Agreement as of June 30, 2021.

GASB Statement No. 88, Certain Disclosures Related to Debt , Including Direct Borrowings and Direct Placements , requires the disclosure of certain information related to debt, including unused letters of credit. Significant events of default under the Credit Agreement, include 1) non-payment, 2) material breach of warranty, re presentation, or other non-remedied breach of covenants as specified in the agreement and 3) bankruptcy and insolvency events, which could result in all outstanding loans under the Credit Agreement to be immediately due and payable; or the immediate termination of the Bank’s commitment to issue letters of credit or make loans under the Credit Agreement.
(b) Litigation
Hetch Hetchy is a defendant in various legal actions and claims that arise during the normal course of business. The final disposition of thes e legal actions and claims is not determinable.

However, in the opinion of management, the outc ome of any litigation of these matters will not have a material effect on the financial position or changes in net position of Hetch Hetchy. (c) Grants
Grants that the Enterprise received are subject to audit and final acceptance by the granting agency. Current and prior year costs of such grants are subject to adjustment upon audit.

HETCH HETCHY WATER AND POWER AND CLEANPOWERSF
Notes to Financial Statements
June 30, 2021 and 2020
(Dollars in thousands, unless otherwise stated)

89 (d) Environmental Issue
As of June 30, 2021, and 2020, there was no pollution remediation liability recorded.

(14) Subsequent Events

(a) CleanPowerSF Guarantee
On November 10, 2021, CleanPowerSF and JPMorgan Chase Bank, National Association executed amendments to the March 2018 Credit Agreement. In connection with the amendments, JPMorgan waived the debt service coverage covenant event of default described in Note 13(a). Among other things, the amendm ents provided for a decrease in the Credit Agreement amount to $20,000 from $75,000 at the request of CleanPowerSF, and extended the agreement to March 2024. Additional changes to the agreement include elimination of target reserve requirements, revisions to debt service coverage and rate-setting covenants, changes to ongoing reporting requirements to the Bank, and changes to events of default, including the addition of an event of default if CleanPowerSF’s credit rating is downgraded below investment grade or suspended, withdrawn or otherwise unavailable.

(b) Power Enterprise, Issuance of Commercial Paper Notes On December 8, 2021, the SFPUC issued $23,000 in Power Enterprise commercial paper notes to finance a portion of the design, acquisition and construction of various capital projects in furtherance of the SFPUC’s Power Enterprise capital improvement program. The commercial paper notes were refinanced with proceeds of the Power Revenue Bonds Series 2021 AB issuance on December 22, 2021.

(c) Power Revenue Bonds Series 2021 AB Issuance
On December 21, 2021, the SFPUC issued its San Francisco Power Revenue Bonds, 2021 Sub-Series A (Green), and Sub-Series B together with an aggregate principal of $124,000 to refund approximately $137,714 aggregate principal amount of commercial paper notes issued pursuant to the Power Enterprise’s commercial paper program to finance or refinance a portion of the design, acquisition and construction of various capital projects in furtherance of the SFPUC’s Power Enterprise capital improvement program.

(d) SFPUC’s Claim to California State for Arrearages Relief The California Department of Community Services & Development is administering funds to energy utilities for the California Arrearage Payment Program (Program) during fiscal year 2022, sourced by the American Rescue Plan Act. The Program was created to provide relief for unpaid bills related to the COVID-19 pandemic. The SFPUC has submitted surveys to the Department of Community Services & Development. Hetch Hetchy received notice from California Department of Community Services & Development on October 28, 2021 stating that $1,218 will be allocated to Hetchy Power and $2,424 will be allocated to CleanPowerSF.

Funds for energy arrearage relief are expected to reach the agency sometime in early 2022.

Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards
The Honorable Mayor and Board of Supervisors
City and County of San Francisco, California:

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the business-type activities and each fund of San Francisco Hetch Hetchy Water and Power and CleanPowerSF (Hetch Hetchy), an enterprise fund of the City and County of San Francisco, California (the City), which comprise the statement of net position as of June 30, 2021, and the related statements of revenues, expenses, and changes in net position , and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated January 27, 2022.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Hetch Hetchy’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Hetch Hetchy’s internal control. Accordingly, we do not express an opinion on the effectiveness of Hetch Hetchy’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness , yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficienc ies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether Hetch Hetchy’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

KPMG LLP
Suite 1400
55 Second Street
San Francisco, CA 94105
KPMG LLP , a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. 91 Purpo
se of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Hetch Hetchy’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Hetch Hetchy’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

San Franc
isco, California
January 27, 2022

Attachmen
t B:

CleanPowerSF Rates Tables for Rates Effective
April 15, 2020 and January 15, 2021
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Proposed
Green Product
Rate
SuperGreen
Rate ($)
Billing
Determinant
Non‐Time of Use Residential
(E‐1)
E‐1, E‐1‐L, EM, EM‐L,
ES, ES‐L, ESR, ES‐R‐L,
ET, and ET‐L
Year round All hours 0.07995 0.08995 kWh
Peak 0.21314 0.22314 kWh
Part Peak 0.09835 0.10835 kWh
Off Peak 0.05150 0.06150 kWh
Part Peak 0.07751 0.08751 kWh
Off Peak 0.06463 0.07463 kWh
Peak 0.16093 0.17093 kWh
Off Peak 0.08768 0.09768 kWh
Peak 0.07629 0.08629 kWh
Off Peak 0.06243 0.07243 kWh
Peak 0.18215 0.19215 kWh
Off Peak 0.08227 0.09227 kWh
Peak 0.07860 0.08860 kWh
Off Peak 0.06039 0.07039 kWh
Peak 0.13669 0.14669 kWh
Off Peak 0.07520 0.08520 kWh
Peak 0.08196 0.09196 kWh
Off Peak 0.06517 0.07517 kWh
Peak 0.23587 0.24587 kWh
Part Peak 0.09606 0.10606 kWh
Off Peak 0.03136 0.04136 kWh
Peak 0.06684 0.07684 kWh
Part Peak 0.02900 0.03900 kWh
Off Peak 0.03369 0.04369 kWh
Peak 0.14612 0.15612 kWh
Part Peak 0.10279 0.11279 kWh
Off Peak 0.06292 0.07292 kWh
Peak 0.09100 0.10100 kWh
Part Peak 0.07890 0.08890 kWh
Off Peak 0.05614 0.06614 kWh
Reservation Charge 0.46 0.46 kW
All hours 0.07995 0.08995 kWh
Summer All hours 0.09648 0.10398 kWh
Winter All hours 0.05758 0.06508 kWh
Peak 0.11064 0.11814 kWh
Part Peak 0.08772 0.09522 kWh
Off Peak    0.06121 0.06871 kWh
Part Peak 0.08754 0.09504 kWh
Off Peak    0.06726 0.07476 kWh
Peak 0.34303 0.35053 kWh
Part Peak 0.11081 0.11831 kWh
Off Peak    0.05431 0.06181 kWh
Part Peak 0.07900 0.08650 kWh
Off Peak    0.06204 0.06954 kWh
Summer All hours 0.09648 0.10398 kWh
Winter All hours 0.05758 0.06508 kWh
Summer All hours 0.08359 0.08859 kWh
Winter All hours 0.05713 0.06213 kWh
Summer Demand 5.55 5.55 kW
Summer All hours 0.07425 0.07925 kWh
Winter All hours 0.05123 0.05623 kWh
Summer Demand 4.85 4.85 kW
A‐10
Medium General Demand
Non‐Time of Use ‐ Secondary
Voltage (A‐10A)
Med. General Demand
Non‐Time of Use ‐ Primary
Voltage (A‐10A‐P)
Small General Time‐of‐Use
Service
(A‐6)
A‐6
Summer
Winter
Direct‐Current General
Service A‐15
Small General Service
(A‐1‐A) A‐1
Small General Service
(A‐1‐B) A‐1X
Summer
Winter
Electric  Vehicle Time‐of‐Use
Service 2
(EV‐2)
EV‐2
Summer
Winter
Residential Multi Meter
Standby (S‐EM) SEM Year round
Residential Time of Use C
(E‐TOU‐C) E‐TOU‐C
Summer
Winter
Electric  Vehicle Time‐of‐Use
Service
(EV)
EV‐A, EV‐B
Summer
Winter
Residential Time of Use A
(E‐TOU‐A) E‐TOU‐A
Summer
Winter
Residential Time of Use B
(E‐TOU‐B) E‐TOU‐B
Summer
Winter
Schedule of CleanPowerSF Electric Rates and Charges Effective April 15, 2020
Residential Time of Use (1)
(E‐6) E‐6
Summer
Winter
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Proposed
Green Product
Rate
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges Effective April 15, 2020
Summer All hours 0.06511 0.07011 kWh
Winter All hours 0.04497 0.04997 kWh
Summer Demand 3.84 3.84 kW
Peak 0.13571 0.14071 kWh
Part Peak 0.08227 0.08727 kWh
Off Peak    0.05507 0.06007 kWh
Part Peak 0.06682 0.07182 kWh
Off Peak    0.05029 0.05529 kWh
Summer Demand 5.55 5.55 kW
Peak 0.12412 0.12912 kWh
Part Peak 0.07511 0.08011 kWh
Off Peak    0.04931 0.05431 kWh
Part Peak 0.06184 0.06684 kWh
Off Peak    0.04644 0.05144 kWh
Summer Demand 4.85 4.85 kW
Peak 0.11038 0.11538 kWh
Part Peak 0.06495 0.06995 kWh
Off Peak    0.04043 0.04543 kWh
Part Peak 0.05352 0.05852 kWh
Off Peak    0.03940 0.04440 kWh
Summer Demand 3.84 3.84 kW
Peak 0.11086 0.11586 kWh
Part Peak 0.06471 0.06971 kWh
Off Peak    0.03414 0.03914 kWh
Max Peak Demand 14.39 14.39 kW
Max Part Peak Demand 3.55 3.55 kW
Part Peak 0.05838 0.06338 kWh
Off Peak    0.04172 0.04672 kWh
Peak 0.09991 0.10491 kWh
Part Peak 0.05637 0.06137 kWh
Off Peak    0.02836 0.03336 kWh
Max Peak Demand 12.81 12.81 kW
Max Part Peak Dem and 3.12 3.12 kW
Part Peak 0.05049 0.05549 kWh
Off Peak    0.03527 0.04027 kWh
Peak 0.05893 0.06393 kWh
Part Peak 0.04463 0.04963 kWh
Off Peak    0.02573 0.03073 kWh
Max Peak Demand 14.08 14.08 kW
Max Part Peak Demand 3.52 3.52 kW
Part Peak 0.04688 0.05188 kWh
Off Peak    0.03236 0.03736 kWh
Peak 0.26636 0.27136 kWh
Part Peak 0.10369 0.10869 kWh
Off Peak 0.03836 0.04336 kWh
Part Peak 0.06178 0.06678 kWh
Off Peak 0.04568 0.05068 kWh
Peak 0.25223 0.25723 kWh
Part Peak 0.09405 0.09905 kWh
Off Peak 0.03250 0.03750 kWh
Part Peak 0.05386 0.05886 kWh
Off Peak 0.03918 0.04418 kWh
E‐19
A‐10
Medium General Demand
Time of Use ‐ Secondary
With Qualifying Solar PV
(E‐19‐S‐R)
Summer
Winter
Medium General Demand
Time of Us
e ‐ Primary
With Qualifying Solar PV
(E‐19‐P‐R)
Summer
Winter
Medium General Demand
Time of Use ‐ Secondary
(E‐19‐S)
Summer
Winter
Medium General Demand
Time of Use ‐ Primary
(E‐19‐P)
Summer
Winter
Medium General Demand
Time of Use ‐ Transmission
(E‐19‐T)
Summer
Winter
Summer
Winter
Medium General Demand
Time of Use ‐ Primary Voltage
(A‐10‐B‐P)
Summer
Winter
Medium Gene
ral Demand
Time of Use ‐ Transmission
(A‐10‐B‐T)
Summer
Winter
Med. General Demand
Non‐Time of Use ‐
Transmission (A‐10A‐T)
Medium General Demand
Time of Use ‐ Secondary
Voltage
(A‐10‐B)
A‐10‐B
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Proposed
Green Product
Rate
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges Effective April 15, 2020
Peak 0.24429 0.24929 kWh
Part Peak 0.09299 0.09799 kWh
Off Peak 0.03226 0.03726 kWh
Part Peak 0.05271 0.05771 kWh
Off Peak 0.03867 0.04367 kWh
Peak 0.10218 0.10968 kWh
Part Peak 0.06015 0.06765 kWh
Off Peak    0.03129 0.03879 kWh
Max Peak Demand 13.97 13.97 kW
Max Part Peak Demand 3.45 3.45 kW
Part Peak 0.05404 0.06154 kWh
Off Peak    0.03841 0.04591 kWh
Peak 0.10611 0.11361 kWh
Part Peak 0.05987 0.06737 kWh
Off Peak    0.03142 0.03892 kWh
Max Peak Demand 15.30 15.30 kW
Max Part Peak Demand 3.61 3.61 kW
Part Peak 0.05378 0.06128 kWh
Off Peak    0.03841 0.04591 kWh
Peak 0.06187 0.06937 kWh
Part Peak 0.04784 0.05534 kWh
Off Peak    0.02928 0.03678 kWh
Max Peak Demand 18.23 18.23 kW
Max Part Peak Demand 4.35 4.35 kW
Part Peak 0.05005 0.05755 kWh
Off Peak    0.03579 0.04329 kWh
Peak 0.24145 0.24895 kWh
Part Peak 0.09614 0.10364 kWh
Off Peak 0.03488 0.04238 kWh
Part Peak 0.05685 0.06435 kWh
Off Peak 0.04176 0.04926 kWh
Peak 0.25877 0.26627 kWh
Part Peak 0.09540 0.10290 kWh
Off Peak 0.03446 0.04196 kWh
Part Peak 0.05605 0.06355 kWh
Off Peak 0.04121 0.04871 kWh
Peak 0.25313 0.26063 kWh
Part Peak 0.08970 0.09720 kWh
Off Peak 0.03147 0.03897 kWh
Part Peak 0.05154 0.05904 kWh
Off Peak 0.03776 0.04526 kWh
Customer‐Owned Street and
Highway Lighting
Customer‐Owned Street and
Highway Lighting Electrolier
Meter Rate
Outdoor Area Lighting
Services
(LS‐1)
LS‐2, LS‐3, OL‐1Y e a r round All hours 0.06375 0.07125 kWh Traffic Control Service
(TC‐1) TC‐1Y e a r round All hours 0.07425 0.08175 kWh All hours 0.07926 0. 08676 kWh
Connected Load 1.51 1.51 kW
Winter All hours 0.05850 0.06600 kWh
E‐19
AG‐1A SummerAgricultural Power
(AG‐1)
Medium General Demand
With Qualifying Solar PV
Time of Use ‐ Primary
E‐20‐P‐R
Summer
Winter
Medium General Demand
With Qualifying Solar PV
Time of Use ‐ Transmission
E‐20‐T‐R
Summer
Winter
Service to Max Demands
>1,000 kW
Time of Use ‐ Transmission
(E‐20T)
Summer
Winter
Medium General Demand
With Qua
lifying Solar PV
Time of Use ‐ Secondary
E‐20‐S‐R
Summer
Winter
Medium General Demand
Time of Use ‐ Transmission
With Qualifying Solar PV
(E‐19‐T‐R)
Summer
Winter
Service to Max Demands
>1,000 kW
Time of Use ‐ Secondary
Voltage
(E‐20‐S)
E‐20
Summer
Winter
Service to Max Demands
>1,000 kW
Time of Use ‐ Primary Voltage
(E‐20‐P)
Summer
Wint
er
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Proposed
Green Product
Rate
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges Effective April 15, 2020
All hours 0.08290 0.09040 kWh
Max Demand 2.27 2.27 kW
Primary Voltage Disc. 0.84 0.84 kW
Winter All hours 0.05901 0.06651 kWh
Peak 0.14529 0.15279 kWh
Off Peak 0.04793 0.05543 kWh
Connected Load 1.52 1.52 kW
Part Peak 0.05235 0.05985 kWh
Off Peak 0.04075 0.04825 kWh
Peak 0.10406 0.11156 kWh
Off Peak 0.04924 0.05674 kWh
Max Demand 2.69 2.69 kW
Max Peak Demand 2.86 2.86 kW
Primary Voltage Disc.
(per Max Demand) 0.68 0.68 kW
Part Peak 0.04735 0.05485 kWh
Off Peak 0.03634 0.04384 kWh
Peak 0.12411 0.13161 kWh
Part Peak 0.05855 0.06605 kWh
Off Peak 0.03472 0.04222 kWh
Max Peak Demand 6.65 6.65 kW
Max Part Peak Demand 1.14 1.14 kW
Primary Voltage Disc.
(per Max Peak Demand) 1.17 1.17 kW
Trans. Volt. Disc.
(per Max Peak Demand) 2.14 2.14 kW
Trans. Volt. Disc.
(per Max Part‐Peak Demand) (0.02) (0.02)             kW Part Peak 0.04148 0.04898 kWh
Off Peak 0.03125 0.03875 kWh
Peak 0.13283 0.14033 kWh
Off Peak 0.05246 0.05996 kWh
Connected Load 4.15 4.15 kW
Part Peak 0.05619 0.06369 kWh
Off Peak 0.04407 0.05157 kWh
Peak 0.13007 0.13757 kWh
Off Peak 0.02572 0.03322 kWh
Max Demand 5.05 5.05 kW
Max Peak Demand 6.32 6.32 kW
Primary Voltage Disc.
(per Max Demand) 1.60 1.60 kW
Trans. Volt. Disc.
(per Max Demand) 2.78 2.78 kW
Part Peak 0.04747 0.05497 kWh
Off Peak 0.01673 0.02423 kWh
Peak 0.10313 0.11063 kWh
Part Peak 0.04810 0.05560 kWh
Off Peak 0.02760 0.03510 kWh
Max Peak Demand 11.72 11.72 kW
Max Part Peak Demand 2.20 2.20 kW
Primary Voltage Disc.
(per Max Peak Demand) 2.44 2.44 kW
Trans. Volt. Disc.
(per Max Peak Demand) 4.56 4.56 kW
Part Peak 0.03374 0.04124 kWh
Off Peak 0.02443 0.03193 kWh
Agricultural Power
(AG‐1)
Large Time‐of‐Use Agricultural
Power
(AG‐5C)
AG‐5C, AG‐5F
Summer
Winter
Large Time‐of‐Use Agricultural
Power
(AG‐5A)
AG‐5A, AG‐5D
Summer
Winter
Large Time‐of‐Use Agricultural
Power
(AG‐5B)
AG‐5B, AG‐5E
Summer
Winter
Agricultural Power, Time‐of‐
Use
(AG‐4B)
AG‐4B, AG‐4E
Summer
Winter
Agr
icultural Power, Time‐of‐
Use
(AG‐4C)
AG‐4C, AG‐4F
Summer
Winter
AG‐1B Summer
Agricultural Power, Time‐of‐
Use
(AG‐4A)
AG‐4A, AG‐4D
Summer
Winter
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Proposed
Green Product
Rate
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges Effective April 15, 2020
Year round Reservation Charge 0.46 0.46 kW
Peak 0.09186 0.09936 kWh
Part Peak 0.07340 0.08090 kWh
Off Peak 0.04921 0.05671 kWh
Part Peak 0.07634 0.08384 kWh
Off Peak 0.05761 0.06511 kWh
Year round Reservation Charge 0.38 0.38 kW
Peak 0.07243 0.07993 kWh
Part Peak 0.05721 0.06471 kWh
Off Peak 0.03709 0.04459 kWh
Part Peak 0.05961 0.06711 kWh
Off Peak 0.04414 0.05164 kWh
Peak 0.13600 0.14350 kWh
Part Peak 0.08916 0.09666 kWh
Off Peak    0.06937 0.07687 kWh
Peak 0.08344 0.09094 kWh
Part Peak 0.06810 0.07560 kWh
Super Off Peak 0.05248 0.05998 kWh
Peak 0.14076 0.14826 kWh
Off Peak    0.07305 0.08055 kWh
Peak 0.08033 0.08783 kWh
Off Peak 0.06409 0.07159 kWh
Super Off Peak 0.04847 0.05597 kWh
Peak 0.15563 0.16063 kWh
Part Peak 0.09694 0.10194 kWh
Off Peak    0.06595 0.07095 kWh
Peak 0.10041 0.10541 kWh
Part Peak 0.06665 0.07165 kWh
Super Off Peak 0.03208 0.03708 kWh
Peak 0.14351 0.14851 kWh
Part Peak 0.08804 0.09304 kWh
Off Peak    0.05870 0.06370 kWh
Peak 0.09153 0.09653 kWh
Part Peak 0.05953 0.06453 kWh
Super Off Peak 0.02495 0.02995 kWh
Peak 0.13594 0.14094 kWh
Part Peak 0.08197 0.08697 kWh
Off Peak    0.05336 0.05836 k
Wh
Peak 0.08547 0.09047 kWh
Off Peak 0.05424 0.05924 kWh
Super Off Peak 0.01967 0.02467 kWh
Peak 0.10083 0.10583 kWh
Part Peak 0.07228 0.07728 kWh
Off Peak    0.05210 0.05710 kWh
Max Peak Demand 14.30 14.30 kW
Max Part Peak Demand 2.08 2.08 kW
Peak 0.08270 0.08770 kWh
Off Peak 0.05202 0.05702 kWh
Super Off Peak 0.01085 0.01585 kWh
Max Peak Demand 1.70019 1.70019 kW
B‐19
Winter
Medium General Demand
Time of Use ‐ Transmission
(B‐10‐T)
Summer
Winter
Medium General Demand
Time of Use ‐ Secondary
(B‐19‐S)
Summer
Winter
Small General Time‐of‐Use
Service
(B‐6)
B‐6
Summer
Winter
Medium Gene
ral Demand
Time of Use ‐ Secondary
Voltage
(B‐10)
B‐10
Summer
Winter
Medium General Demand
Time of Use ‐ Primary Voltage
(B‐10‐P)
Summer
Small General Service
(B‐1) B‐1
Summer
Winter
Winter
Standby Service ‐
Secondary and Primary
Voltage
Applies to Full Standby
customers under Rate
Schedule S.  All partial
standby customers are
billed at their
Othe
rwise Applicable
Schedule ("OAS") rate
Summer
Winter
Standby Service ‐
Transmission Voltage
Summer
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Proposed
Green Product
Rate
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges Effective April 15, 2020
Peak 0.08496 0.08996 kWh
Part Peak 0.06342 0.06842 kWh
Off Peak    0.04469 0.04969 kWh
Max Peak Demand 12.15 12.15 kW
Max Part Peak Demand 1.78 1.78 kW
Peak 0.07328 0.07828 kWh
Off Peak 0.04481 0.04981 kWh
Super Off Peak 0.00429 0.00929 kWh
Max Peak Demand 1.24891 1.24891 kW
Peak 0.07142 0.07642 kWh
Part Peak 0.06271 0.06771 kWh
Off Peak    0.04417 0.04917 kWh
Max Peak Demand 9.20 9.20 kW
Max Part Peak Demand 2.31 2.31 kW
Peak 0.07258 0.07758 kWh
Off Peak 0.04441 0.04941 kWh
Super Off Peak 0.00297 0.00797 kWh
Max Peak Demand 0.88373 0.88373 kW
Peak 0.22163 0.22663 kWh
Part Peak 0.09265 0.09765 kWh
Off Peak 0.05601 0.06101 kWh
Peak 0.09620 0.10120 kWh
Off Peak 0.05595 0.06095 kWh
Super Off Peak 0.02187 0.02687 kWh
Peak 0.19908 0.20408 kWh
Part Peak 0.08154 0.08654 kWh
Off Peak 0.04787 0.05287 kWh
Peak 0.08380 0.08880 kWh
Off Peak 0.04798 0.05298 kWh
Super Off Peak 0.01390 0.01890 kWh
Peak 0.16551 0.17051 kWh
Part Peak 0.08798 0.09298 kWh
Off Peak 0.04787 0.05287 kWh
Peak 0.08012 0.08512 kWh
Off Peak 0.04808 0.
05308 kWh
Super Off Peak 0.01399 0.01899 kWh
Peak 0.09722 0.10472 kWh
Part Peak 0.07116 0.07866 kWh
Off Peak    0.05058 0.05808 kWh
Max Peak Demand 14.15 14.15 kW
Max Part Peak Demand 2.06 2.06 kW
Peak 0.08169 0.08919 kWh
Off Peak 0.05043 0.05793 kWh
Super Off Peak 0.00852 0.01602 kWh
Max Peak Demand 1.80590 1.80590 kW
Peak 0.09305 0.10055 kWh
Part Peak 0.06583 0.07333 kWh
Off Peak    0.04686 0.05436 kWh
Max Peak Demand 15.33 15.33 kW
Max Part Peak Demand 2.10 2.10 kW
Peak 0.07573 0.08323 kWh
Off Peak 0.04692 0.05442 kWh
Super Off Peak 0.00601 0.01351 kWh
Max Peak Demand 1.75785 1.75785 kW
B‐19
B‐20
Service to Max Demands
>1,000 kW
Time of Use ‐ Secondary
Voltage
(B‐20‐S)
Summer
Winter
Servic
e to Max Demands
>1,000 kW
Time of Use ‐ Primary Voltage
(B‐20‐P)
Summer
Winter
Medium General Demand
Time of Use ‐ Primary
With Qualifying Solar PV
(B‐19‐P‐R,S)
Summer
Winter
Medium General Demand
Time of Use ‐ Transmission
With Qualifying Solar PV
(B‐19‐T‐R,S)
Summer
Winter
Winter
Medium General Demand
Time of Use ‐ Transmission
(B‐19‐T)
Summer
Winte
r
Medium General Demand
Time of Use ‐ Secondary
With Qualifying Solar PV
(B‐19‐S‐R,S)
Summer
Winter
Medium General Demand
Time of Use ‐ Primary
(B‐19‐P)
Summer
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Proposed
Green Product
Rate
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges Effective April 15, 2020
Peak 0.07660 0.08410 kWh
Part Peak 0.05992 0.06742 kWh
Off Peak    0.04130 0.04880 kWh
Max Peak Demand 17.23 17.23 kW
Max Part Peak Demand 4.10 4.10 kW
Peak 0.07579 0.08329 kWh
Off Peak 0.03793 0.04543 kWh
Super Off Peak 0.00013 0.00763 kWh
Max Peak Demand 2.30562 2.30562 kW
Peak 0.21667 0.22417 kWh
Part Peak 0.09037 0.09787 kWh
Off Peak 0.05473 0.06223 kWh
Peak 0.09621 0.10371 kWh
Off Peak 0.05461 0.06211 kWh
Super Off Peak 0.02059 0.02809 kWh
Peak 0.20599 0.21349 kWh
Part Peak 0.08335 0.09085 kWh
Off Peak 0.05034 0.05784 kWh
Peak 0.08850 0.09600 kWh
Off Peak 0.05038 0.05788 kWh
Super Off Peak 0.01637 0.02387 kWh
Peak 0.20621 0.21371 kWh
Part Peak 0.09334 0.10084 kWh
Off Peak 0.04553 0.05303 kWh
Peak 0.09320 0.10070 kWh
Off Peak 0.04276 0.05026 kWh
Super Off Peak 0.01155 0.01905 kWh
Year round Reservation Charge 0.30 0.30 kW
Peak 0.08503 0.09253 kWh
Part Peak 0.07354 0.08104 kWh
Off Peak 0.06075 0.06825 kWh
Peak 0.08043 0.08793 kWh
Off Peak 0.06184 0.06934 kWh
Super Off Peak 0.02056 0.02806 kWh
Year round Reservation Charge 0.16 0.16 kW
Peak 0.07197 0.07947 kWh
Part Peak 0.06092 0. 06842 kWh
Off Peak 0.04861 0.05611 kWh
Peak 0.06764 0.07514 kWh
Off Peak 0.04975 0.05725 kWh
Super Off Peak 0.00891 0.01641 kWh
Peak 0.19434 0.20184 kWh
Off Peak 0.07586 0.08336 kWh
Peak 0.07258 0.08008 kWh
Off Peak 0.04639 0.05389 kWh
Peak 0.19435 0.20185 kWh
Off Peak 0.07587 0.08337 kWh
Peak 0.07258 0.08008 kWh
Off Peak 0.04639 0.05389 kWh
Peak 0.21794 0.22544 kWh
Off Peak 0.09610 0.10360 kWh
Peak 0.09076 0.09826 kWh
Off Peak 0.06482 0.07232 kWh
AG
B‐20
Agricultural Power, Time‐of‐
Use (AG‐A1‐A)
Summer
Winter
Agricultural Power, Time‐of‐
Use (AG‐A2‐A)
Summer
Winter
Agricultural Power, Time‐of‐
Use (AG‐B‐A)
Summer
Winter
Medium General Demand
With Qualifying Solar PV
Time of Use ‐ Tran
smission
(B‐20‐T‐R,S)
Summer
Winter
Standby Service ‐
Secondary and Primary
Voltage
(B‐ST‐S)
Applies to Full Standby
customers under Rate
Schedule SB.  All
partial standby
customers are billed at
their Otherwise
Applicable Schedule
("OAS") rate
Summer
Winter
Standby Service ‐
Transmission Voltage
(B‐ST‐T)
Summer
Winter
Medium General Demand
With Qualifying Solar PV
Time of Use ‐ Se
condary
(B‐20‐S‐R,S)
Summer
Winter
Medium General Demand
With Qualifying Solar PV
Time of Use ‐ Primary
(B‐20‐P‐R,S)
Summer
Winter
Service to Max Demands
>1,000 kW
Time of Use ‐ Transmission
(B‐20T)
Summer
Winter
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Proposed
Green Product
Rate
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges Effective April 15, 2020
Peak 0.08885 0.09635 kWh
Off Peak 0.05966 0.06716 kWh
Max Peak Demand 13.03 13.03 kW
Peak 0.07435 0.08185 kWh
Off Peak 0.04909 0.05659 kWh
Peak 0.16022 0.16772 kWh
Off Peak 0.08387 0.09137 kWh
Peak 0.07359 0.08109 kWh
Off Peak 0.04740 0.05490 kWh
Peak 0.18512 0.19262 kWh
Off Peak 0.10462 0.11212 kWh
Peak 0.09190 0.09940 kWh
Off Peak 0.06572 0.07322 kWh
Peak 0.09041 0.09791 kWh
Off Peak 0.06070 0.06820 kWh
Max Peak Demand 13.03 13.03 kW
Peak 0.07616 0.08366 kWh
Off Peak 0.04998 0.05748 kWh
Peak 0.19465 0.20215 kWh
Off Peak 0.03140 0.03890 kWh
Super Off Peak 0.00869 0.01619 kWh
Peak 0.21089 0.21589 kWh
Off Peak    0.02904 0.03404 kWh
Super Off Peak 0.00632 0.01132 kWh
Peak 0.20195 0.20695 kWh
Off Peak 0.00632 0.01132 kWh
Super Off Peak 0.00505 0.01005 kWh
Peak 0.11532 0.12282 kWh
Part Peak 0.07736 0.08486 kWh
Off Peak    0.04539 0.05289 kWh
Peak 0.07009 0.07759 kWh
Part Peak 0.05906 0.06656 kWh
Off Peak 0.03939 0.04689 kWh
Super Off Peak 0.02470 0.03220 kWh
AG
N/A 0.08930 kWh
NEM‐CleanPowerSF
Net Surplus Compensation
Rates
NEM‐CleanPowerSF N/A All hours
Large Business Electric Vehicle
‐ Secondary Volt
age
(B‐EV2‐S) B‐EV2
Year round
Large Business Electric Vehicle
‐ Primary Voltage
(B‐EV2‐P)
Year round
A‐1 Storage A‐1 STORE
Summer
Winter
Agricultural Power, Flexible
Time‐of‐Use (AG‐F‐C)
Summer
Winter
Small Business Electric Vehicle
(B‐EV1) B‐EV1 Year round
Agricultural Power, Time‐of‐
Use (AG‐C‐A)
Summer
Winter
Agr
icultural Power, Flexible
Time‐of‐Use (AG‐F‐A)
AG‐F
Summer
Winter
Agricultural Power, Flexible
Time‐of‐Use (AG‐F‐B)
Summer
Winter
Vintage Applied
(Y/N) PCIA Credit Billing
Determinant
2015 N n/a kWh
2016 N n/a kWh
2017 N n/a kWh
2018 N n/a kWh
2019 Y (0.00208)$     kWh
PCIA Credit
Effective April 15, 2020
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Green
Product Rate
($)
SuperGreen
Rate ($)
Billing
Determinant
Non‐Time of Use Residential
(E‐1)
E‐1, E‐1‐L, EM, EM‐L,
ES, ES‐L, ESR, ES‐R‐L,
ET, and ET‐L
Year round All hours 0.06918 0.07918 kWh
Peak 0.20601 0.21601 kWh
Part Peak 0.08988 0.09988 kWh
Off Peak 0.04248 0.05248 kWh
Part Peak 0.06879 0. 07879 kWh
Off Peak 0.05576 0.06576 kWh
Peak 0.17504 0.18504 kWh
Off Peak 0.07095 0.08095 kWh
Peak 0.06713 0.07713 kWh
Off Peak 0.04814 0.05814 kWh
Peak 0.11946 0.12946 kWh
Off Peak 0.06548 0.07548 kWh
Peak 0.07021 0.08021 kWh
Off Peak 0.05503 0.06503 kWh
Peak 0.13180 0.14180 kWh
Off Peak 0.04599 0.05599 kWh
Peak 0.09009 0.10009 kWh
Off Peak 0.07486 0.08486 kWh
Peak 0.22295 0.23295 kWh
Part Peak 0.08463 0.09463 kWh
Off Peak 0.02063 0.03063 kWh
Peak 0.05574 0.06574 kWh
Part Peak 0.01830 0.02830 kWh
Off Peak 0.02293 0.03293 kWh
Peak 0.13716 0.14716 kWh
Part Peak 0.09201 0.10201 kWh
Off Peak 0.05046 0.06046 kWh
Peak 0.07973 0.08973 kWh
Part Peak 0.06711 0.07711 kWh
Off Peak 0.04340 0.05340 kWh
Reservation Charge 0.48 0.48 kW
All hours 0.07467 0.08467 kWh
Summer All hours 0.08533 0.09283 kWh
Winter All hours 0.04479 0.05229 kWh
Peak 0.10016 0.10766 kWh
Part Peak 0.07628 0.08378 kWh
Off Peak    0.04864 0.05614 kWh
Part Peak 0.07608 0.08358 kWh
Off Peak    0.05496 0.06246 kWh
Peak 0.35146 0.35896 kWh
Part Peak 0.10949 0.11699 kWh
Off Peak    0.05060 0.05810 kWh
Part Peak 0.07633 0.08383 kWh
Off Peak    0.05865 0.06615 kWh
Summer All hours 0.08533 0.09283 kWh
Winter All hours 0.04479 0.05229 kWh
Summer All hours 0.07361 0.07861 kWh
Winter All hours 0.04603 0. 05103 kWh
Summer Demand 5.57 5.57 kW
Residential Time of Use C
(E‐TOU‐D) E‐TOU‐C
Summer
Winter
A‐10
Medium General Demand
Non‐Time of Use ‐ Secondary
Voltage (A‐10A)
Small General Time‐of‐Use
Service
(A‐6)
A‐6
Summer
Winter
Direct‐Current General Service
(A‐15) A‐15
Small General Service
(A‐1‐A) A‐1
Small General Service
(A‐1‐B) A‐1X
Summer
Winter
Elec
tric  Vehicle Time‐of‐Use
Service 2
(EV‐2)
EV‐2
Summer
Winter
Residential Multi Meter
Standby (S‐EM) SEM Year round
Residential Time of Use C
(E‐TOU‐C) E‐TOU‐C
Summer
Winter
Electric  Vehicle Time‐of‐Use
Service
(EV)
EV‐A, EV‐B
Summer
Winter
Residential Time of Use B
(E‐TOU‐B) E‐TOU‐B
Summer
Winter
Schedule of CleanPowerSF Electric Rates and Charges
Effective January 15, 2021
Residential Time of Use (1)
(E‐6) E‐6
Summer
Winter
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Green
Product Rate
($)
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges
Effective January 15, 2021
Summer All hours 0.06387 0.06887 kWh
Winter All hours 0.03988 0.04488 kWh
Summer Demand 4.84 4.84 kW
Summer All hours 0.05463 0.05963 kWh
Winter All hours 0.03366 0.03866 kWh
Summer Demand 3.82 3.82 kW
Peak 0.12819 0.13319 kWh
Part Peak 0.07252 0.07752 kWh
Off Peak    0.04417 0.04917 kWh
Part Peak 0.05641 0.06141 kWh
Off Peak    0.03918 0.04418 kWh
Summer Demand 5.57 5.57 kW
Peak 0.11680 0.12180 kWh
Part Peak 0.06573 0.07073 kWh
Off Peak    0.03884 0.04384 kWh
Part Peak 0.05190 0.05690 kWh
Off Peak    0.03586 0.04086 kWh
Summer Demand 4.84 4.84 kW
Peak 0.10375 0.10875 kWh
Part Peak 0.05640 0.06140 kWh
Off Peak    0.03085 0.03585 kWh
Part Peak 0.04449 0.04949 kWh
Off Peak    0.02978 0.03478 kWh
Summer Demand 3.82 3.82 kW
Peak 0.10041 0.10541 kWh
Part Peak 0.05446 0.05946 kWh
Off Peak    0.02402 0.02902 kWh
Max Peak Demand 14.33 14.33 kW
Max Part Peak Demand 3.55 3.55 kW
Part Peak 0.04816 0.05316 kWh
Off Peak    0.03158 0.03658 kWh
Peak 0.08948 0.09448 kWh
Part Peak 0.04612 0.05112 kWh
Off Peak    0.01825 0. 02325 kWh
Max Peak Demand 12.76 12.76 kW
Max Part Peak Demand 3.11 3.11 kW
Part Peak 0.04026 0.04526 kWh
Off Peak    0.02513 0.03013 kWh
Peak 0.04876 0.05376 kWh
Part Peak 0.03452 0.03952 kWh
Off Peak    0.01567 0.02067 kWh
Max Peak Demand 14.03 14.03 kW
Max Part Peak Demand 3.51 3.51 kW
Part Peak 0.03676 0.04176 kWh
Off Peak    0.02229 0.02729 kWh
Peak 0.26547 0.27047 kWh
Part Peak 0.09596 0.10096 kWh
Off Peak 0.02787 0.03287 kWh
Part Peak 0.05227 0.05727 kWh
Off Peak 0.03551 0.04051 kWh
A‐10
E‐19
Medium General Demand
Time of Use ‐ Secondary
With Qualifying Solar PV
(E‐19‐S‐R)
Summer
Winter
Medium General Demand
Time of Use ‐
Secondary
(E‐19‐S)
Summer
Winter
Medium General Demand
Time of Use ‐ Primary
(E‐19‐P)
Summer
Winter
Medium General Demand
Time of Use ‐ Transmission
(E‐19‐T)
Summer
Winter
Summer
Winter
Medium General Demand
Time of Use ‐ Primary Voltage
(A‐10‐B‐P)
Summer
Winter
Medium General Demand
Time of Use ‐ Transmission
(A‐10‐B‐T)
Summer
Winter
Med. General Demand
No
n‐Time of Use ‐ Primary
Voltage (A‐10A‐P)
Med. General Demand
Non‐Time of Use ‐
Transmission (A‐10A‐T)
Medium General Demand
Time of Use ‐ Secondary
Voltage
(A‐10‐B)
A‐10‐B
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Green
Product Rate
($)
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges
Effective January 15, 2021
Peak 0.25197 0.25697 kWh
Part Peak 0.08713 0.09213 kWh
Off Peak 0.02298 0.02798 kWh
Part Peak 0.04525 0.05025 kWh
Off Peak 0.02995 0.03495 kWh
Peak 0.24210 0.24710 kWh
Part Peak 0.08444 0.08944 kWh
Off Peak 0.02117 0.02617 kWh
Part Peak 0.04248 0.04748 kWh
Off Peak 0.02785 0.03285 kWh
Peak 0.09213 0.09963 kWh
Part Peak 0.05034 0.05784 kWh
Off Peak    0.02164 0.02914 kWh
Max Peak Demand 13.89 13.89 kW
Max Part Peak Demand 3.42 3.42 kW
Part Peak 0.04427 0.05177 kWh
Off Peak    0.02872 0.03622 kWh
Peak 0.09648 0.10398 kWh
Part Peak 0.05052 0.05802 kWh
Off Peak    0.02225 0.02975 kWh
Max Peak Demand 15.20 15.20 kW
Max Part Peak Demand 3.60 3.60 kW
Part Peak 0.04446 0.05196 kWh
Off Peak    0.02920 0.03670 kWh
Peak 0.05296 0.06046 kWh
Part Peak 0.03901 0.04651 kWh
Off Peak    0.02057 0.02807 kWh
Max Peak Demand 18.11 18.11 kW
Max Part Peak Demand 4.31 4.31 kW
Part Peak 0.04121 0. 04871 kWh
Off Peak    0.02703 0.03453 kWh
Peak 0.23930 0.24680 kWh
Part Peak 0.08788 0.09538 kWh
Off Peak 0.02404 0.03154 kWh
Part Peak 0.04693 0.05443 kWh
Off Peak 0.03120 0.03870 kWh
Peak 0.25847 0.26597 kWh
Part Peak 0.08824 0.09574 kWh
Off Peak 0.02474 0.03224 kWh
Part Peak 0.04723 0.05473 kWh
Off Peak 0.03177 0.03927 kWh
Peak 0.25276 0.26026 kWh
Part Peak 0.08244 0.08994 kWh
Off Peak 0.02177 0.02927 kWh
Part Peak 0.04121 0.04871 kWh
Off Peak 0.02703 0.03453 kWh
Customer‐Owned Street and
Highway Lighting
Customer‐Owned Street and
Highway Lighting Electrolier
Meter Rate
Outdoor Area Lighting Services
(LS‐1)
LS‐2, LS‐3, OL‐1Y e a r round All hours 0.05512 0.06262 kWh E‐19
Medium General Demand
With Q
ualifying Solar PV
Time of Use ‐ Primary
E‐20‐P‐R
Summer
Winter
Medium General Demand
With Qualifying Solar PV
Time of Use ‐ Transmission
E‐20‐T‐R
Summer
Winter
Winter
Service to Max Demands
>1,000 kW
Time of Use ‐ Transmission
(E‐20T)
Summer
Winter
Medium General Demand
With Qualifying Solar PV
Time of Use ‐ Secondary
E‐20‐S‐R
Summer
Winter
Medi
um General Demand
Time of Use ‐ Transmission
With Qualifying Solar PV
(E‐19‐T‐R)
Summer
Winter
Service to Max Demands
>1,000 kW
Time of Use ‐ Secondary
Voltage
(E‐20‐S)
E‐20
Summer
Winter
Service to Max Demands
>1,000 kW
Time of Use ‐ Primary Voltage
(E‐20‐P)
Summer
Medium General Demand
Time of Use ‐ Primary
With Qu
alifying Solar PV
(E‐19‐P‐R)
Summer
Winter
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Green
Product Rate
($)
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges
Effective January 15, 2021
Traffic Control Service
(TC‐1) TC‐1Y e a r round All hours 0.05800 0.06550 kWh All hours 0.06933 0.07683 kWh
Connected Load 1.49 1.49 kW
Winter All hours 0.04769 0.05519 kWh
All hours 0.07291 0.08041 kWh
Max Demand 2.25 2.25 kW
Primary Voltage Disc. 0.84 0.84 kW
Winter All hours 0.04800 0.05550 kWh
Peak 0.13910 0.14660 kWh
Off Peak 0.03765 0.04515 kWh
Connected Load 1.52 1.52 kW
Part Peak 0.04225 0.04975 kWh
Off Peak 0.03016 0.03766 kWh
Peak 0.09638 0.10388 kWh
Off Peak 0.03925 0.04675 kWh
Max Demand 2.67 2.67 kW
Max Peak Demand 2.84 2.84 kW
Primary Voltage Disc.
(per Max Demand) 0.65 0.65 kW
Part Peak 0.03728 0.04478 kWh
Off Peak 0.02580 0.03330 kWh
Peak 0.11808 0.12558 kWh
Part Peak 0.04977 0.05727 kWh
Off Peak 0.02493 0.03243 kWh
Max Peak Demand 6.61 6.61 kW
Max Part Peak Demand 1.13 1.13 kW
Primary Voltage Disc.
(per Max Peak Demand) 1.13 1.13 kW
Trans. Volt. Disc.
(per Max Peak Demand) 2.09 2.09 kW
Trans. Volt. Disc.
(per Max Part‐Peak Demand) (0.02)                  (0.02)               kW Part Peak 0.03198 0.03948 kWh
Off Peak 0.02131 0.02881 kWh
Peak 0.12581 0.13331 kWh
Off Peak 0.04206 0.04956 kWh
Connected Load 4.11 4.11 kW
Part Peak 0.04593 0.05343 kWh
Off Peak 0.03331 0.04081 kWh
Peak 0.12399 0.13149 kWh
Off Peak 0.01525 0.02275 kWh
Max Demand 5.01 5.01 kW
Max Peak Demand 6.27 6.27 kW
Primary Voltage Disc.
(per Max Demand) 1.55 1.55 kW
Trans. Volt. Disc.
(per Max Demand) 2.71 2.71 kW
Part Peak 0.03792 0.04542 kWh
Off Peak 0.00588 0.01338 kWh
Large Time‐of‐Use Agricultural
Power
(AG‐5B)
AG‐5B, AG‐5E
Summer
Winter
Agricultural Power, Time‐of‐
Use
(AG‐4C)
AG‐4C, AG‐4F
Summer
Winter
Large Time‐of‐Use Agricultural
Power
(AG‐5A)
AG‐5A, AG‐5D
Summer
Winter
Agricultural Power, Time‐of‐
Use
(AG‐4A)
AG‐4A, AG‐4D
Summer
Winter
Agricultural Power, Time‐of‐
Use
(AG‐4B)
AG‐4B, AG‐4E
Su
mmer
Winter
Agricultural Power
(AG‐1) AG‐1A Summer
Agricultural Power
(AG‐1) AG‐1B Summer
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Green
Product Rate
($)
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges
Effective January 15, 2021
Peak 0.09626 0.10376 kWh
Part Peak 0.03889 0.04639 kWh
Off Peak 0.01755 0.02505 kWh
Max Peak Demand 11.69 11.69 kW
Max Part Peak Demand 2.20 2.20 kW
Primary Voltage Disc.
(per Max Peak Demand) 2.38 2.38 kW
Trans. Volt. Disc.
(per Max Peak Demand) 4.45 4.45 kW
Part Peak 0.02394 0.03144 kWh
Off Peak 0.01423 0.02173 kWh
Year round Reservation Charge 0.46 0.46 kW
Peak 0.08709 0.09459 kWh
Part Peak 0.06821 0.07571 kWh
Off Peak 0.04352 0.05102 kWh
Part Peak 0.07122 0.07872 kWh
Off Peak 0.05208 0.05958 kWh
Year round Reservation Charge 0.37 0.37 kW
Peak 0.06468 0.07218 kWh
Part Peak 0.04953 0.05703 kWh
Off Peak 0.02948 0.03698 kWh
Part Peak 0.05191 0.05941 kWh
Off Peak 0.03651 0.04401 kWh
Peak 0.12954 0.13704 kWh
Part Peak 0.07981 0.08731 kWh
Off Peak    0.05880 0.06630 kWh
Peak 0.07373 0.08123 kWh
Part Peak 0.05745 0.06495 kWh
Super Off Peak 0.04087 0.04837 kWh
Peak 0.13261 0.14011 kWh
Off Peak    0.06073 0.06823 kWh
Peak 0.06845 0.07595 kWh
Off Peak 0.05123 0.05873 kWh
Super Off Peak 0.03465 0.04215 kWh
Peak 0.15251 0.15751 kWh
Part Peak 0.09021 0.09521 kWh
Off Peak    0.05732 0.06232 kWh
Peak 0.09389 0.09889 kWh
Part Peak 0.05806 0.06306 kWh
Super Off Peak 0.02136 0.02636 kWh
Peak 0.13736 0.14236 kWh
Part Peak 0.07847 0.08347 kWh
Off Peak    0.04733 0.05233 kWh
Peak 0.08218 0.08718 kWh
Part Peak 0.04821 0.05321 kWh
Super Off Peak 0.01151 0. 01651 kWh
Peak 0.12028 0.12528 kWh
Part Peak 0.06297 0.06797 kWh
Off Peak    0.03261 0.03761 kWh
Peak 0.06670 0.07170 kWh
Off Peak 0.03354 0.03854 kWh
Super Off Peak (0.00317)           0.00183 kWh
Medium General Demand
Time of Use ‐ Secondary
Voltage
(B‐10)
B‐10
Summer
Winter
Medium General Demand
Time of Use ‐ Primary Voltage
(B‐10‐P)
Summer
Winter
Medium General Demand
Time of Use ‐ Transmission
(B‐10‐T)
Summer
Winter
Small General Service
(B‐1) B‐1
Summer
Winter
Small General Time‐of‐Use
Ser
vice
(B‐6)
B‐6
Summer
Winter
Standby Service ‐
Secondary and Primary
Voltage
Applies to Full Standby
customers under Rate
Schedule S.  All partial
standby customers are
billed at their
Otherwise Applicable
Schedule ("OAS") rate
Summer
Winter
Standby Service ‐
Transmission Voltage
Summer
Winter
Large Time‐of‐Use Agricultural
Power
(AG‐5C)
AG‐5C, AG‐5F
Summer
Winter
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Green
Product Rate
($)
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges
Effective January 15, 2021
Peak 0.09170 0.09670 kWh
Part Peak 0.06300 0.06800 kWh
Off Peak    0.04271 0.04771 kWh
Max Peak Demand 14.37 14.37 kW
Max Part Peak Demand 2.09 2.09 kW
Peak 0.07347 0.07847 kWh
Off Peak 0.04263 0.04763 kWh
Super Off Peak 0.00124 0.00624 kWh
Max Peak Demand 1.71 1.71 kW
Peak 0.07456 0.07956 kWh
Part Peak 0.05313 0.05813 kWh
Off Peak    0.03449 0.03949 kWh
Max Peak Demand 12.09 12.09 kW
Max Part Peak Demand 1.77 1.77 kW
Peak 0.06295 0.06795 kWh
Off Peak 0.03461 0.03961 kWh
Super Off Peak (0.00572)           (0.00072)         kWh Max Peak Demand 1.24000 1.24000 kW
Peak 0.06600 0.07100 kWh
Part Peak 0.05692 0.06192 kWh
Off Peak    0.03758 0.04258 kWh
Max Peak Demand 9.60 9.60 kW
Max Part Peak Demand 2.40 2.40 kW
Peak 0.06721 0.07221 kWh
Off Peak 0.03783 0.04283 kWh
Super Off Peak (0.00538)           (0.00038)         kWh Max Peak De
mand 0.92000 0.92000 kW
Peak 0.22225 0.22725 kWh
Part Peak 0.08532 0.09032 kWh
Off Peak 0.04643 0.05143 kWh
Peak 0.08910 0.09410 kWh
Off Peak 0.04635 0.05135 kWh
Super Off Peak 0.01018 0.01518 kWh
Peak 0.19748 0.20248 kWh
Part Peak 0.07271 0.07771 kWh
Off Peak 0.03695 0.04195 kWh
Peak 0.07510 0.08010 kWh
Off Peak 0.03706 0.04206 kWh
Super Off Peak 0.00088 0.00588 kWh
Peak 0.16660 0.17160 kWh
Part Peak 0.08428 0.08928 kWh
Off Peak 0.04171 0.04671 kWh
Peak 0.07594 0.08094 kWh
Off Peak 0.04192 0.04692 kWh
Super Off Peak 0.00574 0.01074 kWh
B‐19
Medium General Demand
Time of Use ‐ Transmission
With Qualifying Solar PV
(B‐19‐T‐R,S)
Summer
Winter
Winter
Medium General Demand
Time of Use ‐ Secondary
With Qualifying Solar PV
(B‐19‐S‐R,S)
Summer
Wi nter
Medium General Demand
Time of Use ‐ Primary
With Qualifying Solar PV
(B‐19‐P‐R,S)
Summer
Winter
Medium General Demand
Time of Use ‐ Secondary
(B‐19‐S)
Summer
Winter
Medium General Demand
Time of Use ‐ Primary
(B‐19‐P)
Summer
Winter
Medium General Demand
Time of Use ‐ Transmission
(B‐19‐T)
Summer
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Green
Product Rate
($)
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges
Effective January 15, 2021
Peak 0.08642 0.09392 kWh
Part Peak 0.06067 0.06817 kWh
Off Peak    0.04033 0.04783 kWh
Max Peak Demand 13.99 13.99 kW
Max Part Peak Demand 2.03 2.03 kW
Peak 0.07108 0.07858 kWh
Off Peak 0.04017 0.04767 kWh
Super Off Peak (0.00124)           0.00626          kWh Max Peak Demand 1.79000 1.79000 kW
Peak 0.08461 0.09211 kWh
Part Peak 0.05732 0.06482 kWh
Off Peak    0.03828 0.04578 kWh
Max Peak Demand 15.36 15.36 kW
Max Part Peak Demand 2.11 2.11 kW
Peak 0.06725 0.07475 kWh
Off Peak 0.03834 0.04584 kWh
Super Off Peak (0.00268)           0.00482 kWh
Max Peak Demand 1.77000 1.77000 kW
Peak 0.06807 0.07557 kWh
Part Peak 0.05142 0.05892 kWh
Off Peak    0.03284 0.04034 kWh
Max Peak Demand 17.19 17.19 kW
Max Part Peak Demand 4.10 4.10 kW
Peak 0.06726 0.07476 kWh
Off Peak 0.02948 0.03698 kWh
Super Off Peak (0.00826)           (0.00076)         kWh Max Peak D
emand 2.29000 2.29000 kW
Peak 0.21574 0.22324 kWh
Part Peak 0.08167 0.08917 kWh
Off Peak 0.04383 0.05133 kWh
Peak 0.08787 0.09537 kWh
Off Peak 0.04370 0.05120 kWh
Super Off Peak 0.00759 0.01509 kWh
Peak 0.20727 0.21477 kWh
Part Peak 0.07709 0.08459 kWh
Off Peak 0.04204 0.04954 kWh
Peak 0.08256 0.09006 kWh
Off Peak 0.04209 0.04959 kWh
Super Off Peak 0.00598 0.01348 kWh
Peak 0.20713 0.21463 kWh
Part Peak 0.08732 0.09482 kWh
Off Peak 0.03657 0.04407 kWh
Peak 0.08716 0.09466 kWh
Off Peak 0.03362 0.04112 kWh
Super Off Peak 0.00049 0.00799 kWh
B‐20
Medium General Demand
With Qualifying Solar PV
Time of Use ‐ Transmission
(B‐20‐T‐R,S)
Summer
Winter
Service to Max Demands
>1,000 kW
Time of Use ‐ Transmission
(B‐20T)
Summer
Wi
nter
Medium General Demand
With Qualifying Solar PV
Time of Use ‐ Secondary
(B‐20‐S‐R,S)
Summer
Winter
Medium General Demand
With Qualifying Solar PV
Time of Use ‐ Primary
(B‐20‐P‐R,S)
Summer
Winter
Service to Max Demands
>1,000 kW
Time of Use ‐ Secondary
Voltage
(B‐20‐S)
Summer
Winter
Service to Max Demands
>1,000 kW
Time of Use ‐ Primary Voltage
(B‐20‐P)
Su
mmer
Winter
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Green
Product Rate
($)
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges
Effective January 15, 2021
Year round Reservation Charge 0.30 0.30 kW
Peak 0.08125 0.08875 kWh
Part Peak 0.06938 0.07688 kWh
Off Peak 0.05619 0.06369 kWh
Peak 0.07650 0.08400 kWh
Off Peak 0.05731 0.06481 kWh
Super Off Peak 0.01471 0.02221 kWh
Year round Reservation Charge 0.17 0.17 kW
Peak 0.06750 0.07500 kWh
Part Peak 0.05612 0.06362 kWh
Off Peak 0.04345 0.05095 kWh
Peak 0.06303 0.07053 kWh
Off Peak 0.04463 0.05213 kWh
Super Off Peak 0.00258 0.01008 kWh
Peak 0.18461 0.19211 kWh
Off Peak 0.06373 0.07123 kWh
Peak 0.06038 0.06788 kWh
Off Peak 0.03367 0.04117 kWh
Peak 0.18461 0.19211 kWh
Off Peak 0.06373 0.07123 kWh
Peak 0.06038 0.06788 kWh
Off Peak 0.03367 0.04117 kWh
Peak 0.19992 0.20742 kWh
Off Peak 0.07562 0.08312 kWh
Peak 0.07023 0.07773 kWh
Off Peak 0.04377 0.05127 kWh
Peak 0.07247 0.07997 kWh
Off Peak 0.04270 0.05020 kWh
Max Peak Demand 11.91 11.91 kW
Peak 0.05768 0.06518 kWh
Off Peak 0.03191 0.03941 kWh
Peak 0.14979 0.15729 kWh
Off Peak 0.07188 0.07938 kWh
Peak 0.06157 0.06907 kWh
Off Peak 0.03486 0.04236 kWh
Peak 0.16669 0.17419 kWh
Off Peak 0.08457 0.09207 kWh
Peak 0.07239 0.07989 kWh
Off Peak 0.04568 0.05318 kWh
Peak 0.08698 0.09448 kWh
Off Peak 0.05667 0.06417 kWh
Max Peak Demand 11.91 11.91 kW
Peak 0.07242 0.07992 kWh
Off Peak 0.04571 0.05321 kWh
Winter
Agricultural Power, Flexible
Time‐of‐Use (AG‐F‐C)
Summer
Winter
Ag
ricultural Power, Time‐of‐
Use (AG‐C‐A) AG
Summer
Winter
Agricultural Power, Flexible
Time‐of‐Use (AG‐F‐A)
AG‐F
Summer
Winter
Agricultural Power, Flexible
Time‐of‐Use (AG‐F‐B)
Summer
Agricultural Power, Time‐of‐
Use (AG‐A1‐A)
AG
Summer
Winter
Agricultural Power, Time‐of‐
Use (AG‐A2‐A)
Summer
Winter
Ag
ricultural Power, Time‐of‐
Use (AG‐B‐A)
Summer
Winter
Standby Service ‐
Secondary and Primary
Voltage
(B‐ST‐S, B‐ST‐P)
Applies to Full Standby
customers under Rate
Schedule SB.  All
partial standby
customers are billed at
their Otherwise
Applicable Schedule
("OAS") rate
Summer
Winter
Standby Service ‐
Transmission Voltage
(B‐ST‐T)
Summer
Winter
Tariff Title
Applies To Customers
on Following PG&E
Rate Schedules
Season Hours Applied
Green
Product Rate
($)
SuperGreen
Rate ($)
Billing
Determinant
Schedule of CleanPowerSF Electric Rates and Charges
Effective January 15, 2021
Peak 0.22985 0.23735 kWh
Off Peak 0.04546 0.05296 kWh
Super Off Peak 0.01982 0.02732 kWh
Peak 0.24294 0.25044 kWh
Off Peak    0.03755 0.04505 kWh
Super Off Peak 0.01190 0.01940 kWh
Peak 0.23246 0.23996 kWh
Off Peak 0.03452 0.04202 kWh
Super Off Peak 0.01008 0.01758 kWh
Peak 0.12743 0.13493 kWh
Part Peak 0.08623 0.09373 kWh
Off Peak    0.05152 0.05902 kWh
Peak 0.07835 0.08585 kWh
Part Peak 0.06637 0.07387 kWh
Off Peak 0.04502 0.05252 kWh
Super Off Peak 0.02908 0.03658 kWh
kWh
NEM‐CleanPowerSF
Net Surplus Compensation
Rates
NEM‐CleanPowerSF N/A All hours N/A 0.08930
Large Business Electric Vehicle ‐
Secondary Voltage
(B‐EV2‐S) B‐EV2
Year round
Large Business Electric Vehicle ‐
Primary Voltage
(B‐EV2‐P)
Year round
A‐1 Storage A ‐1 STORE
Summer
Winter
Small Business Electric Vehicle
(B‐EV1) B‐EV1 Year round
Customer
Class Vintage Applied
(Y/N)
PCIA Credit
($)
Billing
Determinant
2015 N n/a kWh
2016 Y ‐0.00052 kWh
2017 Y ‐0.00052 kWh
2018 N n/a kWh
2019 N n/a kWh
2015 N n/a kWh
2016 Y ‐0.00051 kWh
2017 Y ‐0.00051 kWh
2018 N n/a kWh
2019 N n/a kWh
2015 N n/a kWh
2016 Y ‐0.00054 kWh
2017 Y ‐0.00054 kWh
2018 N n/a kWh
2019 N n/a kWh
2015 N n/a kWh
2016 Y ‐0.00049 kWh
2017 Y ‐0.00049 kWh
2018 N n/a kWh
2019 N n/a kWh
2015 N n/a kWh
2016 Y ‐0.00041 kWh
2017 Y ‐0.00041 kWh
2018 N n/a kWh
2019 N n/a kWh
2015 N n/a kWh
2016 Y ‐0.00038 kWh
2017 Y ‐0.00038 kWh
2018 N n/a kWh
2019 N n/a kWh
2015 N n/a kWh
2016 Y ‐0.00047 kWh
2017 Y ‐0.00047 kWh
2018 N n/a kWh
2019 N n/a kWh
Standby
Large
Commercial
Streetlights
Agriculture
PCIA Adjustment Credit
Effective January 15, 2021
Residential
Small
Commercial
Medium
Commercial
Customer
Class Vintage Applied
(Y/N)
PCIA Credit
($)
Billing
Determinant
PCIA Adjustment Credit
Effective January 15, 2021
2015 N n/a kWh
2016 Y ‐0.00043 kWh
2017 Y ‐0.00043 kWh
2018 N n/a kWh
2019 N n/a kWh
2015 N n/a kWh
2016 Y ‐0.00046 kWh
2017 Y ‐0.00046 kWh
2018 N n/a kWh
2019 N n/a kWh
2015 N n/a kWh
2016 Y ‐0.00048 kWh
2017 Y ‐0.00048 kWh
2018 N n/a kWh
2019 N n/a kWh
2015 N n/a kWh
2016 Y ‐0.00043 kWh
2017 Y ‐0.00043 kWh
2018 N n/a kWh
2019 N n/a kWh
2015 N n/a kWh
2016 Y ‐0.00050 kWh
2017 Y ‐0.00050 kWh
2018 N n/a kWh
2019 N n/a kWh
BEV1
BEV2
E‐20T
E‐20P
E‐20S

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Attachment C:

CleanPowerSF-PG&E Joint Rate Mailers
(2020 and 2021)

This page is intentionally blank
Understanding your energy choice
Generation Rate is the cost of creating electricity to power your home. The generation rate varies based on your energy provider and the resources included in your energy provider’s generation supply.

PG&E Delivery Rate is a charge assessed by PG&E to deliver electricity to your home. The PG&E delivery rate depends on your electricity usage, but is charged equally to both CleanPowerSF and PG&E customers.

PG&E PCIA/FF represents the Power Charge Indifference Adjustment (PCIA) and the Franchise Fee surcharge (FF). The PCIA is a charge to recover PG&E’s above-market costs for generation resources acquired prior to a customer’s switch to a third-party electric generation provider. The PCIA also applies to PG&E customers that elect to take service under PG&E’s optional Solar Choice program. PG&E acts as a collection agent for the FF surcharge, which is levied by the California Public Utilities Commission (CPUC) on behalf of cities and counties in PG&E’s service territory for all customers. The costs for resources included in the PCIA and FF surcharges are included in the generation rate for PG&E bundled service customers.

If this comparison does not address your specific rate, please visit PG&E online at pge.com/cca or call (866) 743-0335 . For CleanPowerSF, visit cleanpowersf.org or call (415) 554-0773 . *This compares electricity costs for an average residential customer in the CleanPowerSF/PG&E service area with an average monthly usage of 273 kilowatt-hours (kWh). This is based on a representative 12-month billing history for all customers on E-1 rate schedules for PG&E’s and CleanPowerSF’s published rates as of May 15, 2020.
**Solar Choice is a limited program offering available to customers that elect PG&E as their electric service provider. Eligibility is limited and subject to restrictions on customer type, customer size, rate schedule, enrollment level and program caps. For more information please refer to pge.com/solarchoice . 2020 Residential Rate
Comparison, E-1*
*As reported to the California Energy Commission’s Power Source Disclosure Program excluding voluntary unbundled renewable energy credits. PG&E data is subject to an independent audit and verification that will not be completed until October 1, 2020. The figures above may not sum up to 100 percent due to rounding. **Unspecified sources of power refers to electricity that is not traceable to a specific generating facility, such as electricity traded through open market transactions. Unspecified sources of power are typically a mix of all resource types, and may include renewables.

Electric Power
Generation Mix *
Specific Purchases Percent of Total Retail Sales (kWh)
29%
3%
2%
2%
12%
9%
0%
27%
0%
44%
0%
0%
100%
Renewable
• Biomass & Biowaste
• Geothermal
• Eligible Hydroelectric
• Solar Electric
• Wind
Coal
Large Hydroelectric
Natural Gas
Nuclear
Other
Unspecified Sources
of Power
**
TOTAL
PG&E
Solar Choice SuperGreenGreen
100%
0%
0%
0%
100%
0%
0%
0%
0%
0%
0%
0%
100%
48%
0%
12%
0%
5%
31%
0%
48%
2%
0%
0%
2%
100%
100%
0%
0%
0%
51%
49%
0%
0%
0%
0%
0%
0%
100%
For information, visit:

Printed on recycled paper. Printed with soy-based ink. 8.20 CCC-0720-2339 Understanding your energy choice
Generation Rate is the cost of creating electricity to power your business.

The generation rate varies based on your energy provider and the resources included in your energy provider’s generation supply.

PG&E Delivery Rate is a charge assessed by PG&E to deliver electricity to your business. The PG&E delivery rate depends on your electricity usage, but is charged equally to both CleanPowerSF and PG&E customers.

If this comparison does not address your specific rate, please visit PG&E online at pge.com/cca or call (866) 743-0335 . For CleanPowerSF , visit cleanpowersf.org or call (415) 554-0773 .
*This compares electricity costs for an average small commercial time-of-use (TOU) customer in the CleanPowerSF/PG&E service area with an average monthly usage of 1,424 kilowatt-hours (kWh). This is based on a representative 12-month billing history for all customers on A-1 TOU rate schedules for PG&E's and CleanPowerSF's published rates as of May 15, 2020. **Solar Choice is a limited program offering available to customers that elect PG&E as their electric service provider. Eligibility is limited and subject to restrictions on customer type, customer size, rate schedule, enrollment level and program caps. For more information please refer to pge.com/solarchoice .
2020 Commercial Rate
Comparison, A-1 TOU*
Electric Power
Generation Mix *
*As reported to the California Energy Commission’s Power Source Disclosure Program excluding voluntary unbundled renewable energy credits. PG&E data is subject to an independent audit and verification that will not be completed until October 1, 2020. The figures above may not sum up to 100 percent due to rounding.
**Unspecified sources of power refers to electricity that is not traceable to a specific generating facility, such as electricity traded through open market transactions. Unspecified sources of power are typically a mix of all resource types, and may include renewables.

For information, visit:

Para detalles de este programa en español, visite:
தจ൛ຊ
੥্໢
Para sa karagdagang impormasyon tungkol sa
programa na ito sa wikang Filipino bisitahin ang:
cleanpowersf.org
©2020 CleanPowerSF. All rights reserved.
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2020 Pacific Gas and Electric Company. All rights reserved. Printed on recycled paper.

Printed with soy-based ink. 8.20 CCC-0720-2340
Specific Purchases Percent of Total Retail Sales (kWh)
29%
3%
2%
2%
12%
9%
0%
27%
0%
44%
0%
0%
100%
Renewable
• Biomass & Biowaste
• Geothermal
• Eligible Hydroelectric
• Solar Electric
• Wind
Coal
Large Hydroelectric
Natural Gas
Nuclear
Other
Unspecified Sources
of Power**
TOTAL
PG&E
Solar Choice
100%
0%
0%
0%
100%
0%
0%
0%
0%
0%
0%
0%
100%
48%
0%
12%
0%
5%
31%
0%
48%
2%
0%
0%
2%
100%
100%
0%
0%
0%
51%
49%
0%
0%
0%
0%
0%
0%
100%
SuperGreenGreen
Generation Rate ($/kWh)
PG&E Delivery Rate ($/kWh)
PG&E PCIA/FF ($/kWh)
Total Electricity Cost ($/kWh)
Average Monthly Bill ($)
$0.11557
$0.14854
N/A
$0.26411
$376.04
$0.07362
$0.14854
$0.04065
$0.26281
$374.19
$0.08184
$0.14854
$0.03257
$0.26295
$374.39
$0.08934
$0.14854
$0.03257
$0.27045
$385.07
PG&E
Solar Choice**
(100% Renewable) Green
(48% Renewable)
SuperGreen
(100% Renewable)
Price ($) per kWh
PG&E
CleanPowerSF
Peak
Part-Peak
Off-Peak
$0.09104
$0.12486
$0.09750
$0.14851
$0.11445
$0.06395
Part-Peak
Off-Peak
$0.09084
$0.12466
$0.10375
$0.07014
Electric Generation Rates
SummerWinter
PCIA/FF fees are included in PG&E’s base generation
rates, but are charged separately for CleanPowerSF and Solar Choice customers.

Chart is for illustrative purposes only and is not to scale.

Understanding your energy choice
Generation Rate is the cost of creating electricity to power your business.

The generation rate varies based on your energy provider and the resources included in your energy provider’s generation supply.

If this comparison does not address your specific rate, please visit PG&E online at pge.com/cca or call (866) 743-0335 . For CleanPowerSF, visit cleanpowersf.org or call (415) 554-0773 .
2020 Commercial Rate
Comparison, A-10S TOU*
©2020 CleanPowerSF. All rights reserved.
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2020 Pacific Gas and Electric Company. All rights reserved. Printed on recycled paper.

Printed with soy-based ink. 8.20 CCC-0720-2341 *As reported to the California Energy Commission’s Power Source Disclosure Program excluding voluntary unbundled renewable energy credits. PG&E data is subject to an independent audit and verification that will not be completed until October 1, 2020. The figures above may not sum up to 100 percent due to rounding.
**Unspecified sources of power refers to electricity that is not traceable to a specific generating facility, such as electricity traded through open market transactions. Unspecified sources of power are typically a mix of all resource types, and may include renewables.

For information, visit:

Para detalles de este programa en español, visite:
தจ൛ຊ
੥্໢
Para sa karagdagang impormasyon tungkol sa
programa na ito sa wikang Filipino bisitahin ang:
cleanpowersf.org
*This compares electricity costs for an average medium commercial time-of-use (TOU) customer in the CleanPowerSF/PG&E service area with an average monthly demand of 44 kW and an average monthly usage of 14,998 kilowatt-hours (kWh). This is based on a representative 12-month billing history for all customers on A-10S TOU rate schedules for PG&E's and CleanPowerSF's published rates as of May 15, 2020. **Solar Choice is a limited program offering available to customers that elect PG&E as their electric service provider. Eligibility is limited and subject to restrictions on customer type, customer size, rate schedule, enrollment level and program caps. For more information please refer to pge.com/solarchoice .

Generation Rate ($/kWh)
PG&E Delivery Rate ($/kWh)
PG&E PCIA/FF ($/kWh)
Total Electricity Cost ($/kWh)
Average Monthly Bill ($)
$0.11812
$0.10922
N/A
$0.22734
$3,409.63
$0.07008
$0.10922
$0.04379
$0.22309
$3,345.89
$0.08185
$0.10922
$0.03508
$0.22615
$3,391.79
$0.08685
$0.10922
$0.03508
$0.23115
$3,466.78
PG&E
Solar Choice**
(100% Renewable) Green
(48% Renewable)
SuperGreen
(100% Renewable)
Electric Power
Generation Mix *
Specific Purchases Percent of Total Retail Sales (kWh)
39%
4%
4%
2%
18%
10%
0%
13%
15%
34%
0%
0%
100%
Renewable
• Biomass & Biowaste
• Geothermal
• Eligible Hydroelectric
• Solar Electric
• Wind
Coal
Large Hydroelectric
Natural Gas
Nuclear
Other
Unspecified Sources
of Power
TOTAL
PG&E
Solar Choice
100%
0%
0%
0%
100%
0%
0%
0%
0%
0%
0%
0%
100%
48%
1%
10%
0%
1%
36%
0%
40%
0%
0%
0%
11%
100%
100%
0%
0%
0%
0%
100%
0%
0%
0%
0%
0%
0%
100%
SuperGreenGreen
Price ($) per kWh
Max Demand Charges (Summer Only)
Price ($) per kW
Summer $5.73
$5.78
Electric Generation Rates PG&E
CleanPowerSF
PCIA/FF fees are included in PG&E’s base generation
rates, but are charged separately for CleanPowerSF and
Solar Choice customers.

Chart is for illustrative purposes only and is not to scale.

Peak
Part-Peak
Off-Peak
$0.08577
$0.12207
$0.09400
$0.17720
$0.14035
$0.05798
Part-Peak
Off-Peak
$0.06999
$0.10613
$0.08907
$0.05310
SummerWinter
$0.06699
$0.10014
$0.14785
$0.11422
$0.06854
$0.03570
$0.06051
$0.09360
$0.07638
$0.04347
Understanding your energy choice
Generation Rate is the cost of creating electricity to power your business.

The generation rate varies based on your energy provider and the resources included in your energy provider’s generation supply.

If this comparison does not address your specific rate, please visit PG&E online at pge.com/cca or call (866) 743-0335 . For CleanPowerSF, visit cleanpowersf.org or call (415) 554-0773 .
*This compares electricity costs for an average large commercial customer in the CleanPowerSF/PG&E service area with an average monthly demand of 632 kW and an average monthly usage of 257,101 kilowatt-hours (kWh). This is based on a representative 12-month billing history for all customers on E-19S rate schedules for PG&E's and CleanPowerSF's published rates as of May 15, 2020. **Solar Choice is a limited program offering available to customers that elect PG&E as their electric service provider. Eligibility is limited and subject to restrictions on customer type, customer size, rate schedule, enrollment level and program caps. For more information please refer to pge.com/solarchoice . 2020 Commercial Rate
Comparison, E-19S*
©2020 CleanPowerSF. All rights reserved.
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2020 Pacific Gas and Electric Company. All rights reserved. Printed on recycled paper.

Printed with soy-based ink. 8.20 CCC-0720-2342
*As reported to the California Energy Commission’s Power Source Disclosure Program excluding voluntary unbundled renewable energy credits. PG&E data is subject to an independent audit and verification that will not be completed until October 1, 2020. The figures above may not sum up to 100 percent due to rounding.
**Unspecified sources of power refers to electricity that is not traceable to a specific generating facility, such as electricity traded through open market transactions. Unspecified sources of power are typically a mix of all resource types, and may include renewables.

For information, visit:

Para detalles de este programa en español, visite:
தจ൛ຊ
੥্໢
Para sa karagdagang impormasyon tungkol sa
programa na ito sa wikang Filipino bisitahin ang:
cleanpowersf.org
Generation Rate ($/kWh)
PG&E Delivery Rate ($/kWh)
PG&E PCIA/FF ($/kWh)
Total Electricity Cost ($/kWh)
Average Monthly Bill ($)
$0.11339
$0.09255
N/A
$0.20594
$52,947.41
$0.07492
$0.09255
$0.04013
$0.20760
$53,374.20
$0.08010
$0.09255
$0.03215
$0.20480
$52,654.31
$0.08510
$0.09255
$0.03215
$0.20980
$53,939.82
PG&E
Solar Choice**
(100% Renewable) Green
(48% Renewable)
SuperGreen
(100% Renewable)
Electric Power
Generation Mix *
Specific Purchases Percent of Total Retail Sales (kWh)
29%
3%
2%
2%
12%
9%
0%
27%
0%
44%
0%
0%
100%
Renewable
• Biomass & Biowaste
• Geothermal
• Eligible Hydroelectric
• Solar Electric
• Wind
Coal
Large Hydroelectric
Natural Gas
Nuclear
Other
Unspecified Sources
of Power
TOTAL
PG&E
Solar Choice
100%
0%
0%
0%
100%
0%
0%
0%
0%
0%
0%
0%
100%
48%
0%
12%
0%
5%
31%
0%
48%
2%
0%
0%
2%
100%
100%
0%
0%
0%
51%
49%
0%
0%
0%
0%
0%
0%
100%
SuperGreenGreen
Electric Generation Rates
Price ($) per kWh
Demand Charges (Summer Only)
Price ($) per kW
Peak
Part-Peak
Off-Peak
Part-Peak
Summer
Peak
$3.64
$3.68
$14.88
$14.73
Part-Peak SummerWinter Off-Peak
PG&E
CleanPowerSF
PCIA/FF fees are included in PG&E’s base generation rates, but are charged separately for CleanPowerSF and Solar Choice customers.

Chart is for illustrative purposes only and is not to scale.

Understanding your energy choice
PG&E
CleanPowerSF
Green
CleanPowerSF
SuperGreen
Generation Rate ($/kWh) $0.10951 $0.06618 $0.07368
PG&E Delivery Rate ($/kWh) $0.16007 $0.16007 $0.16007
PG&E PCIA/FF ($/kWh) N/A $0.04610 $0.04610
Total Electricity Cost ($/kWh) $0.26958 $0.27235 $0.27985 Average Monthly Bill ($) $355.76 $359.41 $369.31
* This compares electricity costs for an average small commercial customer in the CleanPowerSF/ PG&E service area with an average monthly usage of 1,320 kilowatt-hours (kWh). This is based on a representative 12-month billing history for all customers on B-1 TOU rate schedules for PG&E’s and CleanPowerSF’s published rates as of June 30, 2021. * As reported to the California Energy Commission’s Power Source Disclosure Program excluding voluntary unbundled renewable energy credits. PG&E data is subject to an independent audit and verification that will not be completed until later in 2021. The figures above may not sum up to 100 percent due to rounding.
** Unspecified sources of power refers to electricity that is not traceable to a specific generating facility, such as electricity traded through open market transactions. Unspecified sources of power are typically a mix of all resource types, and may include renewables.

For information, visit:

Para detalles de este programa en español, visite:
參閱本計劃中文版本, 請上網:

Para sa karagdagang impormasyon tungkol sa programa na ito sa wikang Filipino bisitahin ang:
cleanpowersf.org
PCIA/FF fees are included in PG&E’s base generation rates, but are charged separately for CleanPowerSF customers. Chart is for illustrative purposes only and is not to scale.

Specific Purchases PG&E
CleanPowerSF
Green
CleanPowerSF
SuperGreen
Renewable Procurements
Biomass & Biowaste
Geothermal
Eligible Hydroelectric
Solar
Wind

30.6%

2.6%

1.2%

15.9%

8.3%

54.5%

0.0%

6.2%

1.1%

31.7%

15.4%
100%

0.0%

52.7%

47.3%
Coal 0.0% 0.0% 0.0%
Large Hydroelectric 10.1% 42.0% 0.0%
Natural Gas 16.4% 0.0% 0.0%
Nuclear 42.8% 0.0% 0.0%
Other 0.0% 0.0% 0.0%
Unspecified Sources
of Power**

0.0% 3.5% 0.0%
TOTAL 100.0% 100.0% 100.0%
Electric Generation Rates Price ($) per kWh
$0.17224
$0.10220
$0.07981
$0.05745
$0.04087
$0.07373
$0.12301
$0.10087
$0.08445
$0.11699
$0.12954
$0.05880
Summer Winter
Peak
Part-Peak
Off-Peak
Peak
Off-Peak
Super Off-Peak
PG&E
CleanPowerSF
Generation Rate is the cost of creating electricity to power your business. The generation rate varies based on your energy provider and the resources included in your energy provider’s generation supply.

PG&E PCIA/FF represents the Power Charge Indifference Adjustment (PCIA) and the Franchise Fee surcharge (FF). The PCIA is a charge to ensure that both PG&E customers and those who have left PG&E service to purchase electricity from other providers pay the above market costs for generation resources that were procured by PG&E on their behalf. “Above market” refers to expenditures for electric generation resources that cannot be fully recovered through sales of these resources at current market prices. PG&E acts as a collection agent for the FF surcharge, which is levied by the California Public Utilities Commission (CPUC) on behalf of cities and counties in PG&E’s service territory for all customers. The costs for resources included in the PCIA and FF surcharge are included in the generation rate for PG&E bundled service customers.

If this comparison does not address your specific rate, please visit PG&E online at pge.com/cca or call (866) 743-0335.

For CleanPowerSF, visit cleanpowersf.org or call (415) 554-0773. ©2021 CleanPowerSF. All rights reserved. “PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2021 Pacific Gas and Electric Company. All rights reserved.

Printed on recycled paper. Printed with soy-based ink. 8.21 CCC-1221-3730 2021 Commercial Rate Comparison, B-1* Electric Power Generation Mix* Percent of Total Retail Sales (kWh) Understanding your energy choice
PG&E
CleanPowerSF
Green
CleanPowerSF
SuperGreen
Generation Rate ($/kWh) $0.11549 $0.06907 $0.07407
PG&E Delivery Rate ($/kWh) $0.11999 $0.11999 $0.11999
PG&E PCIA/FF ($/kWh) N/A $0.04945 $0.04945
Total Electricity Cost ($/kWh) $0.23548 $0.23851 $0.24351 Average Monthly Bill ($) $4,188.57 $4,242.47 $4,331.40
* This compares electricity costs for an average medium commercial customer in the CleanPowerSF/PG&E service area with an average monthly demand of 62 kW and an average monthly usage of 17,787 kilowatt-hours (kWh). This is based on a representative 12-month billing history for all customers on B-10S TOU rate schedules for PG&E’s and CleanPowerSF’s published rates as of June 30, 2021.
* As reported to the California Energy Commission’s Power Source Disclosure Program excluding voluntary unbundled renewable energy credits. PG&E data is subject to an independent audit and verification that will not be completed until later in 2021. The figures above may not sum up to 100 percent due to rounding.
** Unspecified sources of power refers to electricity that is not traceable to a specific generating facility, such as electricity traded through open market transactions. Unspecified sources of power are typically a mix of all resource types, and may include renewables.

For information, visit:

Para detalles de este programa en español, visite:
參閱本計劃中文版本, 請上網:

Specific Purchases PG&E
CleanPowerSF
Green
CleanPowerSF
SuperGreen
Renewable Procurements
Biomass & Biowaste
Geothermal
Eligible Hydroelectric
Solar
Wind

30.6%

2.6%

1.2%

15.9%

8.3%

54.5%

0.0%

6.2%

1.1%

31.7%

15.4%
100%

0.0%

52.7%

47.3%
Coal 0.0% 0.0% 0.0%
Large Hydroelectric 10.1% 42.0% 0.0%
Natural Gas 16.4% 0.0% 0.0%
Nuclear 42.8% 0.0% 0.0%
Other 0.0% 0.0% 0.0%
Unspecified Sources
of Power**

0.0% 3.5% 0.0%
TOTAL 100.0% 100.0% 100.0%
Electric Generation Rates Price ($) per kWh
$0.19812
$0.10386
$0.09021
$0.05806
$0.02136
$0.09389
$0.13643
$0.10459
$0.06825
$0.14007
$0.15251
$0.05732
Summer Winter
Peak
Part-Peak
Off-Peak
Peak
Off-Peak
Super Off-Peak
PG&E
CleanPowerSF
Generation Rate is the cost of creating electricity to power your business. The generation rate varies based on your energy provider and the resources included in your energy provider’s generation supply.

If this comparison does not address your specific rate, please visit PG&E online at pge.com/cca or call (866) 743-0335.

Printed on recycled paper. Printed with soy-based ink. 8.21 CCC-1221-3731 2021 Commercial Rate Comparison, B-10S* Electric Power Generation Mix* Percent of Total Retail Sales (kWh) Understanding your energy choice
PG&E
CleanPowerSF
Green
CleanPowerSF
SuperGreen
Generation Rate ($/kWh) $0.11207 $0.06928 $0.07428
PG&E Delivery Rate ($/kWh) $0.12006 $0.12006 $0.12006 PG&E PCIA/FF ($/kWh) N/A $0.04533 $0.04533
Total Electricity Cost ($/kWh) $0.23213 $0.23467 $0.23967 Average Monthly Bill ($) $34,500.38 $34,877.89 $35,621.01 * This compares electricity costs for an average large commercial customer in the CleanPowerSF/ PG&E service area with an average monthly demand of 499 kW and an average monthly usage of 148,625 kilowatt-hours (kWh). This is based on a representative 12-month billing history for all customers on B-19S TOU rate schedules for PG&E’s and CleanPowerSF’s published rates as of June 30, 2021.
* As reported to the California Energy Commission’s Power Source Disclosure Program excluding voluntary unbundled renewable energy credits. PG&E data is subject to an independent audit and verification that will not be completed until later in 2021. The figures above may not sum up to 100 percent due to rounding.
** Unspecified sources of power refers to electricity that is not traceable to a specific generating facility, such as electricity traded through open market transactions. Unspecified sources of power are typically a mix of all resource types, and may include renewables.

For information, visit:

Para detalles de este programa en español, visite:
參閱本計劃中文版本, 請上網:

Specific Purchases PG&E
CleanPowerSF
Green
CleanPowerSF
SuperGreen
Renewable Procurements
Biomass & Biowaste
Geothermal
Eligible Hydroelectric
Solar
Wind

30.6%

2.6%

1.2%

15.9%

8.3%

54.5%

0.0%

6.2%

1.1%

31.7%

15.4%
100%

0.0%

52.7%

47.3%
Coal 0.0% 0.0% 0.0%
Large Hydroelectric 10.1% 42.0% 0.0%
Natural Gas 16.4% 0.0% 0.0%
Nuclear 42.8% 0.0% 0.0%
Other 0.0% 0.0% 0.0%
Unspecified Sources
of Power**

0.0% 3.5% 0.0%
TOTAL 100.0% 100.0% 100.0%
Electric Generation Rates Price ($) per kWh
$0.13463
$0.08530
$0.06300
$0.04263
$0.00124
$0.07347
$0.10573
$0.08522
$0.04354
$0.11628
$0.09170
$0.04271
Summer Winter
Peak
Part-Peak
Off-Peak
Peak
Off-Peak
Super Off-Peak
$14.48
$2.11
$1.72
$14.37
$2.09
$1.71
Max Peak Summer
Part-Peak Summer
Max Peak Winter
PG&E
CleanPowerSF
Generation Rate is the cost of creating electricity to power your business. The generation rate varies based on your energy provider and the resources included in your energy provider’s generation supply.

If this comparison does not address your specific rate, please visit PG&E online at pge.com/cca or call (866) 743-0335.

Printed on recycled paper. Printed with soy-based ink. 8.21 CCC-1221-3732 2021 Commercial Rate Comparison, B-19S* Electric Power Generation Mix* Percent of Total Retail Sales (kWh) Max Demand Charges; Price ($) per kW
Understanding your energy choice
PG&E
CleanPowerSF
Green
CleanPowerSF
SuperGreen
Generation Rate ($/kWh) $0.10955 $0.06449 $0.07449
PG&E Delivery Rate ($/kWh) $0.17696 $0.17696 $0.17696 PG&E PCIA/FF ($/kWh) N/A $0.04753 $0.04753
Total Electricity Cost ($/kWh) $0.28651 $0.28898 $0.29898 Average Monthly Bill ($) $105.07 $105.97 $109.64
* This compares electricity costs for an average residential customer in the CleanPowerSF/PG&E service area with an average monthly usage of 367 kilowatt- hours (kWh). This is based on a representative 12-month billing history for all customers on E-TOU-C rate schedules for PG&E’s and CleanPowerSF’s published rates as of June 30, 2021.
* As reported to the California Energy Commission’s Power Source Disclosure Program excluding voluntary unbundled renewable energy credits. PG&E data is subject to an independent audit and verification that will not be completed until later in 2021. The figures above may not sum up to 100 percent due to rounding. ** Unspecified sources of power refers to electricity that is not traceable to a specific generating facility, such as electricity traded through open market transactions.

Unspecified sources of power are typically a mix of all resource types, and may include renewables.

For information, visit:

Para detalles de este programa en español, visite:
參閱本計劃中文版本, 請上網:

Chart is for illustrative purposes only and is not to scale.

Specific Purchases PG&E
CleanPowerSF
Green
CleanPowerSF
SuperGreen
Renewable Procurements
Biomass & Biowaste
Geothermal
Eligible Hydroelectric
Solar
Wind

30.6%

2.6%

1.2%

15.9%

8.3%

54.5%

0.0%

6.2%

1.1%

31.7%

15.4%
100%

0.0%

52.7%

47.3%
Coal 0.0% 0.0% 0.0%
Large Hydroelectric 10.1% 42.0% 0.0%
Natural Gas 16.4% 0.0% 0.0%
Nuclear 42.8% 0.0% 0.0%
Other 0.0% 0.0% 0.0%
Unspecified Sources
of Power**

0.0% 3.5% 0.0%
TOTAL 100.0% 100.0% 100.0%
Electric Generation Rates Price ($) per kWh
$0.16397
$0.06548
$0.05503
$0.07021
$0.11053
$0.10018
$0.11521
$0.11946
Summer Winter
Peak
Off-Peak
Peak
Part-Peak
PG&E
CleanPowerSF
Generation Rate is the cost of creating electricity to power your business.

The generation rate varies based on your energy provider and the resources included in your energy provider’s generation supply.

If this comparison does not address your specific rate, please visit PG&E online at pge.com/cca or call (866) 743-0335.

Printed on recycled paper. Printed with soy-based ink. 8.20 CCC-0720-2342 2021 Residential Rate Comparison, E-TOU-C* Electric Power Generation Mix* Percent of Total Retail Sales (kWh)

Attachment D:

CleanPowerSF-PG&E Joint Rate Comparison (2021)

This page is intentionally blank

PG&E – CleanPowerSF
Joint Rate Comparisons

As a part of our mutual commitment to support your energy choice, CleanPowerSF and PG&E have partnered to create a comparison of our typical electric rates, average monthly charges and generation portfolio contents. Below you will find a representative comparison of our rates, average monthly bills and power generation portfolio content based on customer class. To find your specific electric rate, please scroll down to your rate plan to view the rate and bill comparisons.

Residential
• Tiered Rate Plan E-1
• Tiered Rate Plan E-1L (CARE)
• E-6
Time-of-Use (Peak Pricing 4-9 p.m. Weekdays)
• ETOUB
• ETOUBL (CARE)
Time-of-Use (Peak Pricing 4-9 p.m. Everyday)
• ETOUC
• ETOUCL (CARE)
• Electric Vehicle Rate Plan EV2-A
• Electric Vehicle Rate Plan EV2-AL (CARE)

Small and Medium Business
• A-1
• A- 10S
• A- 10SX
• A- 1X
• A-6
• B-1
• B-6
• B- 10S

Large Commercial and Industrial

• E- 19S
• E- 19SV
• E- 20S
• B- 19SV

Streetlight and Outdoor Lighting

• LS-3
• TC-1

Definitions
Generation Rate is the cost of creating electricity to power your home or business. The generation rate varies based on your energy provider and the resources included in your energy provider’s generation supply.

PG&E Delivery Rate is a charge assessed by PG&E to deliver electricity to your home or business. The PG&E delivery rate depends on your electricity usage but is charged equally to both CleanPowerSF and PG&E customers.

PG&E PCIA/FF represents the Power Charge Indifference Adjustment (PCIA) and the Franchise Fee surcharge (FF). The PCIA is a charge to recover PG&E’s costs for generation resources that are currently above the market rate. These resources were committed to prior to a customer’s switch to a third-party electric generation provider. PG&E acts as a collection agent for the Franchise Fee surcharge, which is levied by the California Public Utilities Commission on behalf of cities and counties in PG&E’s service territory for all customers. The costs for resources included in the PCIA and FF surcharges are included in the generation rate for PG&E bundled service customers
Where Do I Find My Electric Rate Schedule?
Need some help finding your electric rate? Go to the “Electric Delivery Charges” section of your energy statement - you’ll find your electric rate in the upper left.

Look here to identify your electric rate
schedule. Once you have that, you can find
your rate comparison below.

PG&E rates effective as of March 1, 2021
CleanPowerSF rates effective as of January 15, 2021

Residential *

E-1 *

Residential: E-1

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.11418 $0.06918 $0.07918
PG&E Delivery Rate ($/kWh) $0.17100 $0.17100 $0.17100 PG&E PCIA/FF ($/kWh) N/A $0.04753 $0.04753
Total Electricity Cost ($/kWh) $0.28518 $0.28771 $0.29771 Average Monthly Bill ($) $89.79 $90.59 $93.74
Monthly usage: 315 kWh

E-1 (CARE)*

Residential: E-1 CARE

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.11418 $0.06918 $0.07918
PG&E Delivery Rate ($/kWh) $0.06636 $0.06636 $0.06636 PG&E PCIA/FF ($/kWh) N/A $0.04753 $0.04753
Total Electricity Cost ($/kWh) $0.18054 $0.18307 $0.19307 Average Monthly Bill ($) $58.44 $59.26 $62.50
Monthly usage: 324 kWh

E-6*

Residential: E-6

PG&E
CleanPowerSF
Green
CleanPowerSF
SuperGreen
(100% Renewable) (50% Renewable)
Generation Rate ($/kWh) $0.11399 $0.06935 $0.07935
PG&E Delivery Rate ($/kWh) $0.17276 $0.17276 $0.17276 PG&E PCIA/FF ($/kWh) N/A $0.04753 $0.04753
Total Electricity Cost ($/kWh) $0.28675 $0.28964 $0.29964 Average Monthly Bill ($) $110.05 $111.16 $115.00
Monthly usage: 384 kWh

PG&E rates effective as of March 1, 2021
CleanPowerSF rates effective as of January 15, 2021

E-TOU B*

Residential: E-TOU B

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10730 $0.06223 $0.07223
PG&E Delivery Rate ($/kWh) $0.17359 $0.17359 $0.17359 PG&E PCIA/FF ($/kWh) N/A $0.04753 $0.04753
Total Electricity Cost ($/kWh) $0.28089 $0.28335 $0.29335 Average Monthly Bill ($) $325.37 $328.22 $339.80
Monthly usage: 1,158 kWh

E-TOU BL*

Residential: E-TOU BL

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10728 $0.06221 $0.07221
PG&E Delivery Rate ($/kWh) $0.07571 $0.07571 $0.07571 PG&E PCIA/FF ($/kWh) N/A $0.04753 $0.04753
Total Electricity Cost ($/kWh) $0.18299 $0.18545 $0.19545 Average Monthly Bill ($) $169.66 $171.94 $181.21
Monthly usage: 927 kWh

E-TOU C*

Residential: E-TOU C

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10955 $0.06449 $0.07449
PG&E Delivery Rate ($/kWh) $0.17696 $0.17696 $0.17696 PG&E PCIA/FF ($/kWh) N/A $0.04753 $0.04753
Total Electricity Cost ($/kWh) $0.28651 $0.28898 $0.29898 Average Monthly Bill ($) $105.07 $105.97 $109.64
Monthly usage: 367 kWh

E-TOU CL*

Residential: E-TOU CL

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10916 $0.06410 $0.07410
PG&E Delivery Rate ($/kWh) $0.07549 $0.07549 $0.07549 PG&E PCIA/FF ($/kWh) N/A $0.04753 $0.04753
Total Electricity Cost ($/kWh) $0.18465 $0.18712 $0.19712 Average Monthly Bill ($) $71.39 $72.35 $76.21
Monthly usage: 387 kWh
PG&E rates effective as of March 1, 2021
CleanPowerSF rates effective as of January 15, 2021

EV2-A*

Residential: EV-A

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10662 $0.06154 $0.07154
PG&E Delivery Rate ($/kWh) $0.15473 $0.15473 $0.15473 PG&E PCIA/FF ($/kWh) N/A $0.04753 $0.04753
Total Electricity Cost ($/kWh) $0.26135 $0.26380 $0.27380 Average Monthly Bill ($) $171.06 $172.66 $179.20
Monthly usage: 655 kWh

EV2-AL*

Residential: EV2-AL

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10507 $0.05997 $0.06997
PG&E Delivery Rate ($/kWh) $0.06021 $0.06021 $0.06021 PG&E PCIA/FF ($/kWh) N/A $0.04753 $0.04753
Total Electricity Cost ($/kWh) $0.16528 $0.16771 $0.17771 Average Monthly Bill ($) $200.03 $202.97 $215.08
Monthly usage: 1,210 kWh

*Please note this rate comparison excludes the California Climate Credit from the State of California which is issued twice a year to residential customers. For more information visit www.energyupgradeCA.org/credit
PG&E rates effective as of March 1, 2021
CleanPowerSF rates effective as of January 15, 2021

Small and Medium Business **

A-1**
Commercial/Industrial:

A-1

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10832 $0.06498 $0.07248
PG&E Delivery Rate ($/kWh) $0.15907 $0.15907 $0.15907 PG&E PCIA/FF ($/kWh) N/A $0.04610 $0.04610
Total Electricity Cost ($/kWh) $0.26739 $0.27015 $0.27765 Average Monthly Bill ($) $355.80 $359.47 $369.45
Monthly usage: 1,331 kWh

A-1X TOU**
Commercial/Industrial:

A-1 TOU (A-1X)

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10909 $0.07362 $0.06600
PG&E Delivery Rate ($/kWh) $0.16249 $0.16249 $0.16249 PG&E PCIA/FF ($/kWh) N/A $0.02801 $0.04610
Total Electricity Cost ($/kWh) $0.27158 $0.26412 $0.27459 Average Monthly Bill ($) $296.82 $288.67 $300.11
Monthly usage: 1,093 kWh

A-6**
Commercial/Industrial:

A-6

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.12026 $0.08479 $0.09359
PG&E Delivery Rate ($/kWh) $0.15863 $0.15863 $0.15863 PG&E PCIA/FF ($/kWh) N/A $0.02801 $0.04610
Total Electricity Cost ($/kWh) $0.27889 $0.27143 $0.29832 Average Monthly Bill ($) $631.18 $614.30 $675.16
Monthly usage: 2,263 kWh

A-10S Non Time-of-Use**
Commercial/Industrial:

A-10S

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.11721 $0.06828 $0.07328
PG&E Delivery Rate ($/kWh) $0.11578 $0.11578 $0.11578 PG&E PCIA/FF ($/kWh) N/A $0.04945 $0.04945
Total Electricity Cost ($/kWh) $0.23299 $0.23351 $0.23851 Average Monthly Bill ($) $2,664.94 $2,670.89 $2,728.08
Monthly usage: 11,438 kWh, monthly demand: 33 kW
PG&E rates effective as of March 1, 2021
CleanPowerSF rates effective as of January 15, 2021

A-10SX Time of Use**
Commercial/Industrial:

A-10SX

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.11659 $0.06671 $0.07171
PG&E Delivery Rate ($/kWh) $0.11641 $0.11641 $0.11641 PG&E PCIA/FF ($/kWh) N/A $0.04945 $0.04945
Total Electricity Cost ($/kWh) $0.23300 $0.23257 $0.23757 Average Monthly Bill ($) $2,582.01 $2,577.25 $2,632.65
Monthly usage: 11,082 kWh, monthly demand: 32 kW

B-1**
Commercial/Industrial:

B-1

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10951 $0.06618 $0.07368
PG&E Delivery Rate ($/kWh) $0.16007 $0.16007 $0.16007 PG&E PCIA/FF ($/kWh) N/A $0.04610 $0.04610
Total Electricity Cost ($/kWh) $0.26958 $0.27235 $0.27985 Average Monthly Bill ($) $355.76 $359.41 $369.31
Monthly usage: 1,320 kWh

B-10S**
Commercial/Industrial:

B-10S

B-19SV**
Commercial/Industrial:

B-19SV

PG&E rates effective as of March 1, 2021
CleanPowerSF rates effective as of January 15, 2021

B-6**
Commercial/Industrial:

B-6

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10420 $0.06086 $0.06836
PG&E Delivery Rate ($/kWh) $0.15871 $0.15871 $0.15871 PG&E PCIA/FF ($/kWh) N/A $0.04610 $0.04610
Total Electricity Cost ($/kWh) $0.26291 $0.26567 $0.27317 Average Monthly Bill ($) $341.25 $344.83 $354.57
Monthly usage: 1,298 kWh

** Please note this rate comparison excludes volumetric California Climate Credits issued to eligible business customers that impact PG&E Delivery Rates only. For more information visit www.energyupgradeCA.org/credit
PG&E rates effective as of March 1, 2021
CleanPowerSF rates effective as of January 15, 2021

Large Commercial and Industrial

E-19S
Commercial/Industrial:

E-19S

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10654 $0.06392 $0.06892
PG&E Delivery Rate ($/kWh) $0.08872 $0.08872 $0.08872 PG&E PCIA/FF ($/kWh) N/A $0.04533 $0.04533
Total Electricity Cost ($/kWh) $0.19526 $0.19797 $0.20297 Average Monthly Bill ($) $42,109.67 $42,694.11 $43,772.41 Monthly usage: 215,659 kWh, monthly demand: 483 kW

E-19SV
Commercial/Industrial:

E-19SV

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10505 $0.07069 $0.06150
PG&E Delivery Rate ($/kWh) $0.09338 $0.09338 $0.09338 PG&E PCIA/FF ($/kWh) N/A $0.02752 $0.04533
Total Electricity Cost ($/kWh) $0.19843 $0.19159 $0.20021 Average Monthly Bill ($) $3,651.18 $3,525.32 $3,683.93
Monthly usage: 18,400 kWh, monthly demand: 41 kW

E-20S
Commercial/Industrial:

E-20S

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10346 $0.06282 $0.07032
PG&E Delivery Rate ($/kWh) $0.09429 $0.09429 $0.09429 PG&E PCIA/FF ($/kWh) N/A $0.04343 $0.04343
Total Electricity Cost ($/kWh) $0.19775 $0.20054 $0.20804 Average Monthly Bill ($) $110,009.58 $111,561.67 $115,733.97 Monthly usage: 556,306 kWh, monthly demand: 1, 397 kW
PG&E rates effective as of March 1, 2021
CleanPowerSF rates effective as of January 15, 2021

Streetlight and Outdoor Lighting

LS-3
Streetlights:

LS3

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.09091 $0.05512 $0.06262
PG&E Delivery Rate ($/kWh) $0.13091 $0.13091 $0.13091 PG&E PCIA/FF ($/kWh) N/A $0.03787 $0.03787
Total Electricity Cost ($/kWh) $0.22182 $0.22390 $0.23140 Average Monthly Bill ($) $48.54 $48.99 $50.63
Monthly usage: 219 kWh

TC-1
Streetlights:

TC1

PG&E
CleanPowerSF
Green
(50% Renewable)
CleanPowerSF
SuperGreen
(100% Renewable)
Generation Rate ($/kWh) $0.10150 $0.05800 $0.06550
PG&E Delivery Rate ($/kWh) $0.18126 $0.18126 $0.18126 PG&E PCIA/FF ($/kWh) N/A $0.04610 $0.04610
Total Electricity Cost ($/kWh) $0.28276 $0.28536 $0.29286 Average Monthly Bill ($) $53.96 $54.45 $55.89
Monthly usage: 191 kWh

CleanPowerSF Sfpuc CommissionApril 26, 2022

CleanPowerSF Sfpuc Commission
April 26, 2022