May 9, 2023
San Francisco
Public Utilities Commission
Fiscal Year 2023
-
2024
Wholesale Water Rates
2 Agenda
• Drivers of Wholesale Rate Increase
• Fi
scal Year 2023-2024 Wholesale Water Rate
• Historic and Projected Wholesale Rates
3 Drivers of Wholesale Rate Increase
1. Water Sales Volumes Still Low
• Drought impact
• Covid-19 recovery
2. Balancing Account Paid Off
• Fully repaid by end of FYE 2023
4 Water Sales: Actuals and 10-Year
Financial Plan Projections
5 Balancing Account Impact
• Balancing account owed to wholesale was very high in recent years, all
owing for lower rates as SFPUC paid it back
• Projecting full pay-back and money owed to retail by the end of this fiscal year
• No balancing account limits ability to smooth rate increases
6 FY 2023-24 Rate Increase: 9.7%
Wholesale Revenue Requirement ± Balancing Account
Wholesale Volumes
• Continued wholesale sales volumes low and assumed
meet
ing water conservation budgets (122.6 MGD)
• Use of Balancing Account and projected to be repaid in FY 2022-23
7 Historic and Projected Wholesale
Rates
DEPARTMENT
SFPUC Finance
AGENDA NO.
7 MEETING DATE
May 9, 2023
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Wholesale Water Rates and Charges for Fiscal Year 2023-2024 Regular Calendar
Project Manager: Erin Corvinova
Summary of
Proposed
Commission Action:
Adopt the proposed Wholesale Water Rates for Fiscal Year 2023- 2024, which will become effective for meter readings on or after July 1, 2023. The San Francisco Public Utilities Commission developed the proposed rates in accordance with the terms of the Wate r Sup ply Agreement between the City and County of San Francisco and its Wholesale Customers. This action constitutes the Approval Action for the Project for the purposes of the California Environmental Quality Act (CEQA), pursuant to San Francisco Administrative Code section
31.04(h). The Planning Department has determined that this action is exempt from the CEQA. If the item is approved, the Commission will rely on that determination to make its decision.
Background and
Description of
Proposed Action:
Background
The San Francisco Public Uti lities Commission (SFPUC) sells water to retail customers, who are located primarily inside the City and County of San Francisco ( CCSF), and 27 wholesale customers in Alameda Count y, S an Mateo County, and Santa Cla ra C ounty (Wholesale Customers ). The Wholesale C ustomers establish loc al utility rates for the reta il water customers that they serve in their respective jurisdictions.
The SFPUC establishes w ater r ates applicable to the Wholesale Customers (Wholesale Water Rates ) in accordance with the terms of the Water Supply Agreemen t (WSA) between CCSF and the
Wholesale Customers , which was approved on April 28, 2009 by Commission Resolution No. 09- 0069, and am ended and re stated on January 26, 2021 by Commission Re solution No. 21-0009, wi th subsequent approval by the Wholesale Customers.
Under the WSA, the Commission must consider annual adjustments to the Wholesale Water Rates, which are based on projected wholes ale- related costs and water deliveries to t he Wholes ale Customers, in coordination with the SFPUC ’s financial planni ng and budget processes. The WSA also sets f orth specific proc edures that the SFPUC must follow if it intends to increase Wholesale Water Rates during the ensuing fiscal year.
In general, th e WS A requires the Wholesale Customers to pay operating expenses and capital costs associated with the SFPUC ’s “regional” assets, which serve bot h the Wholesale Customers and the SFPUC’s retail customers, based on proportional water use. The WSA Title: Wholesale Water Rates and Charges for Fiscal Year 2023-2024 Meeting Date: May 9, 2023
allows the SFPUC to rec over a portion of net annual debt service for new regional assets and to recover the W holesale Customers’ share of revenue-funded regional capita l costs. The WSA also authorizes the SFPUC to collect the Wholesale Customers’ contribution to meet debt service coverage reserve requirements. In addition , t he WSA directs the SFPUC to consider , when establishing Whol esale Water Rates , whether the Balancing Account maintained under the WSA has a positive balance, reflecting an amo unt that the SF PUC owes to t he Wholesale Customers, based on actual costs incurred by the SFPUC and actual amounts of water used by wholesale and retail customers in previous fiscal years . The SFPUC may apply an amount from the Balancing A ccount to reduce Wholesale Water Rates for the immediately ensuing year.
As discussed in further detail below, SFPUC Finance staff’s proposed adjustments for Fiscal Year (FY) 2023-2024 include a new volumetric water rate of $5.21 per Ccf (1 Ccf = 748 gallons ), based on the Wholesale Customers’ portion of the SFPUC R egional Water System’s capital and operating costs under the WSA, known as the Wholesale Revenu e Requirement (WRR), the ap plication of a Balancing Account repayment, and water sales assumptions. This new rate reflects a 9.7% increase f rom t he current rate of $4.75 per Ccf .
SFPUC Finance staff also proposes a decrease in the Untreat ed Wholesale Water Rate Discount applicable to Coastside County Water District, the one Wholesale Customer that receives non-potable water from the SFPUC , ra ther than treated po table drinking water, and treats it at its own facilities.
As required by WSA section 6.03.A, the SFPUC sent a written notice of the proposed adjustments to the Wholesale Water Rates for FY 2023-2024 to all of the Wholesale Customers and the Bay Area Water Supply and Conservation Agency ( BAWSCA), that represents t he Wholesale Customers, more than 30 days before this Commission meeting, on April 6, 2023. The SFPUC’s notice to the Wholesa le Customers and BAWSCA included tables and schedules illustrating the calculation of the proposed increase in rat es, which w ould be effective on July 1, 2023, more than 30 days after adopti on by the Commission.
Proposed Volumetric Water Rate Change
SFPUC Finance staff prepared an analysis of t he SFPUC Water Enterprise’s projected revenues and re venue r equirements for FY 2023-2024. Without the proposed adjustments, the current volumetric water rate applicable to the Wholesale Cu stomers ($4.75 per Ccf ) would generate $284.9 million in revenues, based on projec ted water deliveries, which the SFPUC would use to meet the costs of providing Wholesale Customer water service. In addition, the fixed monthly service charges, which are not proposed to be changed, are projected to generate a tot al of $4.3 million in reven ue, for a combined $289.3 million in revenue at current rates.
As sho wn in the table below, however, the projected WRR for FY 2023-2024, which includes the Wholesale Custome rs’ proportionate Title: Wholesale Water Rates and Charges for Fiscal Year 2023-2024 Meeting Date: May 9, 2023
share of operating expenses, debt service on bonds sold to construct or acquire new regional assets, and revenue funding for new cash-funded regional assets, totals a significantly higher number – $311.3 million.
This increase include s the payback of the full projected value of the Balancing Account owed to the SFPUC of $5.8 million.
To meet the revenue requirement, SFPUC Finance staff recommends increasing the volumetric water rate applicable to the Wh olesale Customers on or a fter July 1, 2023 by 9.7%, to $5.21 per Ccf, as shown on Schedule W-25.
Projected Wholesale Revenue Requirement ($ millions)
FY 2023-2024
Operating Costs $134.0
Debt Service 159.1
Capital: Revenue Funded 16.7
Balancing Account 5.8
Debt Service Coverage 1.5
Total Requirement $311.3
Projected Wholesale Sales 122.6 MGD
Monthly Meter Charges
As p art of the ongoing wholesale meter calibration and replacement project, new meter technologies and sizes are planned to replace certain wholesale meters. To ensur e there are valid monthly service charges for all meters planned to be inst alled during FY 2023-24, Schedule W- 25 has renamed the column “Magnetic Meters” to “Electronic Meters” to capture the broader technology, and added a proportional charge for the 10” electronic meter size based on the relative pricing of the new meters and the existing monthl y me ter charges for the 8” and 12” meters in the same category.
At this time, the SFPUC is not updating the rate structure or changing any of the existing monthly meter charges. However, with planned meter upgrades, staff expects to revisit this issue in t he coming years following the process outlined in WSA Section 6.04.B to c onsider changes to the structure and amounts of the monthly meter charges.
Untreated Wholesale Water Rate Discount Factor
The S FPUC’s April 6, 2023 notice also informe d the Wholesale Customers and BAWSCA of a proposed de crease in th e Untreated Wholesale Water R ate Discount Fac tor appli cable to Coastsi de County Water District ( CCWD) for FY 2023-2024. Unli ke the SFPUC’s o ther Who lesale Customer s, who receive treated pot able drinking water from t he SFPUC, CCWD receiv es non-potable water from the SFPUC, which it treats to drinking water standards at its own facilities.
As required by Section 8 of the individ ual water sales contract Title: Wholesale Water Rates and Charges for Fiscal Year 2023-2024 Meeting Date: May 9, 2023
between the SFPUC and CCWD under the terms of the WSA, SFPUC Finance staff c ommissioned an independent analysis in 2010 to evaluate t he cost of service for untreated water. The lower contract price of untreated wat er compared to treated water, which the SFPUC and the Wh olesale Customers refer to as a “discount factor,” is based on the uni t cost of capital and operating expens es for the SFPUC’s Harry Tracy Water Treatment P lant (HTWTP), which is not used to treat the “raw” water delivered to CCWD.
SFPUC Fina nce recommends de creasing the discount factor applicable to CCWD in FY 2023-2024 to $0.38 per Ccf, a decrease of $0.05 from the current rate, as shown on Schedule W-25. The SFPUC calculated this discount factor by dividing the total projected costs and expenses for HTWTP in FY 2023-2024 by the total projected water deliveries to the Wholesale Customers in FY 2023-2024.
Environmental
Review:
On Apri l 17, 2023, the San Francisco Planning Department determined the Pr oject to be statutorily exempt from environmental review under the CEQA s ection 21080(b)(8) and CEQA Guidelines section 15273 (Rates, Tolls , Fares and Charges) ( Case No. 2023- 003208ENV) related to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges . The exemption can be found here: https://sfpuc.sharefile.com/d - s001ccb350d1241f9b6b13582f81d91ea
This action constit utes t he Approval Action for the Project for the purposes of the CEQA, pursuant to San Francisco Administrative code section 31.04(h).
Attachments: 1. Schedule W-25: Wholesale Use with Long-Term Contract
2. FY 2023-2024 Wholesale Water Rates Notice
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
Resolution No. ______________
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) sells water to retail customers, who are located pr imarily inside the City and County of San Francisco ( San Francisco), and 27 wholesale customers in Alameda County, San Mateo County, and Santa Clara County (Whol esale Customers ). The Whole sale Customers establish local uti lity rates for the retail water customers that they serve in their respective jurisdictions; and WHEREAS, The SFPUC e stablishes water rates applicable to the Wholesale C ustomers (Wholesale Water Rat es) in accordance with the Water Supply Agree ment (WSA) between San Francisco and the Wholesale Customers, which was approved on April 28, 2009, by Commission Resolution N o. 09-0069, and amended and restated on January 26, 2021, by Commi ssion Resolution No. 21-0009, with subsequent approval by the Wholesale Customers; and WHEREAS, The SFPUC proposes to adjust the W holesale Water Rates for Fiscal Year (FY) 20 23-2024 to i nclude a new volumetric water rate of $5.21 per Ccf , which is a 9.7% increase from t he current rate of $4.75 per Ccf , and a ne w Untreated Wholesale Water Rate Discount Factor of $0.38 per Ccf, which is a decrease of $0.05 from the current rate and applies only to Coastside C ounty Water Distr ict, the only Wholesale C ustomer which receives non- potable water from the SFPUC; and
WHEREAS, As required by WSA section 6.03, the SFPUC issued written notice of the proposed adjustments to the W holesale Water Rates for FY 2023-2024 to al l of the Wholesal e Customers and the Bay Area Water Supply and Conser vation Agency ( BAWSCA) on April 6, 2023, and th e Commission held a publ ic hea ring on May 9, 2 023 to cons ider the propos ed adjustments; and
WHEREAS, A c opy of the WSA, and a copy of the SFP UC’s April 6, 2023 notice to the Wholesale Cust omers and BAWSCA, which included among its a ttachments Schedule W-25:
Wholesale Use With Long-Term Contract, showing the proposed Wholesale Water Rates effective July 1, 2023, are on file with the Secretary of the Commission and incorporated in this resolution by reference; and
WHEREAS, The Commission a pproved the WSA after review ing t he Fin al Program Environmental Impact Report for the Water System Improvement Progr am, and adopted and incorporated by reference the California Environmental Quality Act ( CEQA) findings conta ined in Commission Resolution N o. 08-0200 dated October 3 0, 2008, and made addit ional findings pursuant to CEQA; and
WHEREAS, On April 17, 2023 the San Francisco Planning Department determined the Project to be statutorily exempt from environmental review under CEQA section 21080(b)(8) and CEQA Guidelines section 15273 (Rates, Tolls, Fares and Charges) (Case Number 2023- 003208ENV), related to the establishment, modification, structuring, r estructuring, or approval of rates, tolls, fares, or other charges; and
WHEREAS, The Commission is securing revenue for purposes of meeting e stimated FY 2023-2024 “Regional” operating and capital costs consistent with Article 5 of the WSA; and
WHEREAS, This Commission finds that adoption of this resolution will establis h an increase to wholesale water rates and charges for t he following purposes: (1) meeting operating expenses, including empl oyee wage rates and fringe benefits ; (2) pur chasing or leasing supplies, equipment or materials; (3) meeting financial reserve needs and requirements; (4) obtaining funds for capital projects, necessary to maintain service within existing service areas ; and (5) obtai ning funds necessary to maintain such intra -city transfers as are authorized by city charte r; ow, therefore, be it
RESOLVED, This Commission determines that an increase in the volumetric wat er rates applicable to the Wholesale Customers is required for Fi scal Year 2023-2024 and hereby a dopts the proposed 9.7% increase, as enumerated in the revised Schedule W- 25: Wholesale Use With Long-Term Contr act, attached hereto an d incorporated by refer ence herein, which shall b e uniform to the ne arest dolla r on serv ice charges, and establishes a $ 5.21 per 100 cubic feet commodity charge, for all water delivered to the Whol esale Customers, on or after July 1, 2023, and this rate shall remain in place until replaced or amended; and, be it FURTHER RESOLVED, This Commission hereby adopts the Untreated Wholesale Water Rate Discount Factor, as enumerated in the revised Sched ule W-25: Wholesale Use With L ong- Term Contract, and establishes a $0.38 per 100 cubic feet rate discount factor, for all untreated water delivered to Co astside County W ater District, on or after July 1, 2023, and this r ate shall remain in place until replaced or amended.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of May 9, 2023.
Secretary, Public Utilities Commission
SCHEDULE W-25: Wholesale Use with Long-Term Contract
For service to municipalities, water districts and others who, under long-term contracts, purchase water for resale:
First: A Monthly Service Charge base on the type and size of the meter:
Meter
Size
Disc/Compound
Meters
Crest Meters
Electronic
Meters
Turbine Meters
5/8 in.
$11
-
-
-
3/4 in.
$18 - - -
1 in.
$30 - - -
1 1/2 in.
$43 - - -
2 in.
$79 - - -
3 in.
$158 - - -
4 in.
$318
$353
-
$577
6 in.
$476
$685
-
$1,256
8 in.
$635
$1,335
$2,265
$1,875
10 in.
$793
$1,732
$3,769
$3,391
12 in.
$953
$1,840
$5,159
-
16 in.
$1,270
$5,628
-
$7,215
18 in.
-
$6,133
-
-
20 in.
-
$6,349
-
-
The service charge for a battery of meters installed on one service in lieu of one meter or for a special type of meter, shall be based on the size of single or multiple standard type meters of equivalent capacity.
Second: A charge for water delivered based on one-month’s meter readings:
$2,269.48 per acre-foot or $5.21 per 100 cu. ft.
Third: An Untreated Wholesale Water Rate Discount Factor for Wholesale Customers receiving untreated water, based on one-month’s meter readings:
($165.53) per acre-foot or ($0.38) per 100 cu. ft.
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, 13th Floor
San Francisco, CA 94102
T 415.554.3155
F 415.554.3161
TTY 415.554.3488
April 6, 2023
Ms. Nicole Sandkulla
CEO/General Manager
Bay Area Water Supply & Conservation Agency
155 Bovet Road, Suite 650
San Mateo, CA 94402
Re: Fiscal Year 2023-24 Wholesale Water Rates Notice
Dear Ms. Sandkulla,
The San Francisco Public Utilities Commission (SFPUC) has determined that the Fiscal Year 2023-24 Wholesale Water Rates will be $5.21 per CCF, representing a $0.46 per CCF or 9.7% increase from the current rate for treated wholesale water, effective July 1, 2023. As required by WSA Section
6.03.A, the SFPUC has scheduled a public hearing to consider the adoption of the wholesale water rate, as follows:
May 9, 2023, 1:30 PM
San Francisco City Hall
1 Dr. Carlton B. Goodlett Place, Room 400
San Francisco, CA 94102
The main drivers of the rate increase are water sales volumes and the balancing account. Unlike in prior years, expenditures are not a major driver; the Fiscal Year 2023-24 Wholesale Revenue Requirement is projected to be essentially flat as compared to the prior year. Reduced water usage as the region recovers from drought will, all else equal, require higher rates. Volumes for FY 2023-24 are projected to be 122.6 MGD, based on the latest current- year forecasts and an expected slow recovery from drought conditions over the next three years. In addition, the SFPUC plans to fully pay off the balancing account by the end of FY 2022-23, eliminating the balancing account as a tool to mitigate rate increases.
The SFPUC has reduced the projected wholesale rate increase from the 11.6% presented at the Wholesale Customer Annual Meeting, mostly due to increased volume forecasts as drought conditions have improved.
Monthly Meter Charges
As part of the ongoing wholesale meter calibration and replacement project, new meter technologies and sizes are planned to replace certain wholesale meters. To ensure there are valid monthly service charges for all meters planned to be installed during FY 2023-24, Schedule W-25 has renamed the
column “Magnetic Meters” to “Electronic Meters” to capture the broader technology, and added a proportional charge for the 10” electronic meter size based on the relative pricing of the new meters and the existing monthly meter charges for the 8” and 12” meters in the same category.
At this time, the SFPUC is not updating the rate structure or changing any of the existing monthly meter charges. However, with changes to meters upcoming, we expect to revisit this issue in the coming years following the process outlined in WSA Section 6.04.B to consider changes to the structure and amounts of the monthly meter charges.
Untreated Wholesale Water Rate Discount Factor
The Fiscal Year 2023-24 Untreated Wholesale Water Rate Discount will be $0.38 per CCF, a decrease of $0.05 from the current rate, effective July 1, 2023. The discount factor is equal to the Harry Tracy Water Treatment Plant total projected cost. The discount is calculated by dividing the relevant cost by total wholesale water deliveries. The decrease is driven by expenses (especially capital) for other facilities increasing in cost, causing costs related to Harry Tracy to represent a smaller portion of overall expenditures.
The San Francisco Public Utilities Commission will hold a public hearing on this rate at its May 9, 2023 meeting.
Fiscal Year 2023-24 Billing
As in prior years, the following charges, unrelated to the Wholesale Revenue Requirement, will be effective July 1, 2023:
• BAWSCA Bond Surcharge: The monthly bills include the February 2013 prepayment of the Pre-2009 Assets surcharge for the repayment of BAWSCA issued bonds. The amounts of the surcharge are proportionate to water consumption and have been adjusted accordingly. The SFPUC bills and collects the surcharge on behalf of BAWSCA and remits these amounts to the trustee.
• Late Fees: Late payment penalties as specified in Schedule W-44 will be in effect. The SFPUC encourages Wholesale customers to sign up for electronic billing and payment services to make timely payments and to avoid late fees. Please sign up with our SFPUC BillPay service at myaccount-water.sfpuc.org to receive and pay your bills online. If you have any questions, please contact customer assistance at (415) 551- 3000.
Enclosures
Per WSA Section 6.03.A, supporting documents are required if there is a rate increase. We are attaching the following:
• Attachment N-1: Balancing Account/Rate Setting Calculation: A table showing the change in the Wholesale Revenue Requirement and how the wholesale rate was calculated
• Attachment N-3: Schedule of Projected Water Sales, Wholesale Revenue Requirements and Wholesale Rates: A schedule showing projected Wholesale Customer water sales and rates for the proposed rate year and the following four fiscal years
• FY 2023-24 Calculation of Untreated Water Discount Factor • Schedule W-25: Wholesale Use with Long-Term Contract - Proposed Fiscal Year 2023-24 Wholesale Customer water rates
• Fiscal Year 2023-24 BAWSCA Bond Surcharge letter and schedule showing the bond surcharge for each member agency
If you have any questions, please contact me at 415-487-5227 or [email protected].
Sincerely,
Erin Corvinova
Financial Planning Director
Enclosures
cc: Dennis Herrera, SFPUC, General Manager
Ronald Flynn, SFPUC, Chief of Staff
Steve Ritchie, SFPUC, Water Enterprise Assistant General Manager Nancy Hom, SFPUC, CFO & Business Services AGM
Charles Perl, SFPUC, Deputy CFO
Alison Kastama, SFPUC, BAWSCA Liaison
Sheryl Bregman, SF City Attorney
Catherine Malina, SF City Attorney
Christina Tang, BAWSCA, Finance Manager
Balancing Account / Rate-Setting Calculation Schedule N-1 Reference Section 6.03.A.3
Fiscal Year 2023-24
FY 2021-22 FY 2022-23 FY 2023-24
1. Actual Changes to Balancing Account for FY 2021-22
A. Balancing Account as of June 30, 2021 (unaudited) (62,980,471)$ B. Interest on Balancing Account and Coverage Reserve (625,733)$ C. Wholesale Revenues for Fiscal Year (257,016,936)$
D. Wholesale Revenue Requirement for Fiscal Year 287,385,517$ E. Net Change in Wholesale Revenue Coverage 2,278,271$
F. Settlement Credits or Other Adjustments 346,750$
G Balancing Account as of June 30, 2022 (unaudited) (30,612,601)$
2. Projected Changes to Balancing Account for FY 2022-23 A. Balancing Account as of June 30, 2022 (30,612,601)$
B. Interest on Balancing Account and Coverage Reserve (346,573)$ C. Wholesale Revenues for Fiscal Year (287,269,832)$
D. Wholesale Revenue Requirement for Fiscal Year 309,804,997$ E. Settlement Credits or Other Adjustments -$
F. Balancing Account as of June 30, 2023 (8,424,009)$
G. Net Change in Wholesale Revenue Coverage 14,151,740$ H. Total Revenue Deficiency or (Surplus) 5,727,731$
3. Projected Changes to Balancing Account for FY 2023-24 A. Balancing Account as of June 30, 2023 5,727,731$
B. Interest on Balancing Account and Coverage Reserve (205,946)$ C. Wholesale Revenues for Fiscal Year (316,910,758)$
D. Wholesale Revenue Requirement for Fiscal Year 309,852,665$ E. Settlement Credits or Other Adjustments -$
F. Balancing Account as of June 30, 2024 (1,536,308)$
G. Net Change in Wholesale Revenue Coverage 1,692,800$
H. Total Revenue Deficiency or (Surplus) 156,491$
I. Projected Water Sales in CCF 59,998,214
J. Deficiency or (Surplus) $/CCF 0.00$
K. Deficiency or (Surplus) CCF as a Percentage of Revenues 0% Schedule of Projected Water Sales, Wholesale Revenue Requirements, and Wholesale Rates Schedule N-3 Reference Section 6.03.A.3
Fiscal Year 2023-24
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Water Enterprise
Operations & Maintenance Expenses
Source of Supply 20,894,757$ 20,931,214$ 21,756,703$ 23,961,009$ 24,706,839$ 26,863,628$ Pumping -$ -$ -$ -$ -$ -$
Treatment 34,620,283$ 34,680,688$ 36,048,432$ 39,700,722$ 40,936,479$ 44,510,037$ Transmission & Distribution 18,650,456$ 18,682,997$ 19,419,820$ 21,387,363$ 22,053,083$ 23,978,212$ Customer Services 207,908$ 208,271$ 216,485$ 238,418$ 245,839$ 267,300$ Total Operations & Maintenance Expenses 74,373,404$ 74,503,170$ 77,441,440$ 85,287,512$ 87,942,241$ 95,619,177$ Administrative & General Expenses
Countywide Cost Allocation Plan (COWCAP) 1,358,012$ 1,360,382$ 1,414,033$ 1,557,297$ 1,605,771$ 1,745,947$ SFPUC Bureaus 17,027,659$ 17,057,368$ 17,730,080$ 19,526,424$ 20,134,220$ 21,891,841$ Compliance Audit 97,396$ 97,566$ 101,414$ 111,689$ 115,166$ 125,219$ Other Administrative & General 8,135,537$ 8,149,732$ 8,471,143$ 9,329,407$ 9,619,802$ 10,459,564$ Total Administrative & General Expenses 26,618,605$ 26,665,048$ 27,716,670$ 30,524,817$ 31,474,958$ 34,222,571$ Property Taxes 1,340,685$ 1,343,024$ 1,395,990$ 1,537,427$ 1,585,282$ 1,723,669$ Capital Cost Recovery
Pre-2009 Assets (K-1 to K-4) -$ -$ -$ -$ -$ -$
Pre-2009 Assets (K-5) -$ -$ -$ -$ -$ -$
Debt Service on New Assets 173,054,150$ 172,612,150$ 173,197,331$ 176,447,902$ 176,532,126$ 179,939,115$ Revenue Credit for BABs Subsidy (13,929,253)$ (13,510,503)$ (13,282,490)$ (13,034,940)$ (12,752,688)$ (12,440,134)$ Revenue Funded Capital 16,900,000$ 16,737,500$ 16,827,500$ 16,915,000$ 16,992,500$ 17,070,000$ True-Up of Wholesale Capital Fund -$ -$ -$ -$ -$ -$
Total Capital Cost Recovery 176,024,897$ 175,839,148$ 176,742,341$ 180,327,961$ 180,771,938$ 184,568,981$ Hetch Hetchy Water & Power
Operations & Maintenance Expenses 20,052,018$ 20,087,004$ 20,879,200$ 22,994,601$ 23,710,350$ 25,780,149$ Administrative & General Expenses
Countywide Cost Allocation Plan (COWCAP) 558,639$ 559,614$ 581,684$ 640,618$ 660,558$ 718,222$ SFPUC Bureaus 3,579,000$ 3,585,245$ 3,726,640$ 4,104,209$ 4,231,960$ 4,601,390$ Other Administrative & General 3,900,561$ 3,907,367$ 4,061,466$ 4,472,959$ 4,612,188$ 5,014,810$ Total Administrative & General Expenses 8,038,200$ 8,052,225$ 8,369,790$ 9,217,786$ 9,504,706$ 10,334,422$ Property Taxes 186,932$ 187,258$ 194,644$ 214,364$ 221,037$ 240,332$ Schedule of Projected Water Sales, Wholesale Revenue Requirements, and Wholesale Rates Schedule N-3 Reference Section 6.03.A.3
Fiscal Year 2023-24
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Capital Cost Recovery
Pre-2009 Assets (K-1 to K-4) -$ -$ -$ -$ -$ -$
Pre-2009 Assets (K-5) -$ -$ -$ -$ -$ -$
Debt Service on New Assets -$ -$ -$ -$ -$ -$
Revenue Funded Capital -$ -$ -$ -$ -$ -$
Total Capital Cost Recovery -$ -$ -$ -$ -$ -$
Wholesale Revenue Requirement 309,804,997$ 309,852,665$ 316,041,108$ 333,739,950$ 338,959,154$ 356,565,183$ Balancing Account as of June 30 (Beginning of Year) (30,612,601)$ 5,727,731$ 156,491$ (7,176,606)$ (328,395)$ 80,243$ Balancing Account Deferral (5,727,731)$ (156,491)$ 7,176,606$ 328,395$ (80,243)$ -$ Interest on Balancing Account and Coverage Reserve (346,573)$ (205,946)$ (273,414)$ (315,614)$ (294,609)$ (305,304)$ Settlement Credits and Other Adjustments -$ -$ -$ -$ -$ -$ Wholesale Debt Service Coverage Reserve 14,151,740$ 1,692,800$ 521,076$ 4,773,343$ 370,437$ 4,691,319$ Wholesale Revenues Before Rate Change
Volumetric Charges (244,230,329)$ (284,991,518)$ (319,301,806)$ (327,029,408)$ (328,010,496)$ (336,225,110)$ Excess Use Charges / Minimum Purchase -$ -$ -$ -$ -$ -$ Service Charges (4,320,061)$ (4,320,061)$ (4,320,061)$ (4,320,061)$ (4,320,061)$ (4,320,061)$ Total Wholesale Deficiency or (Credit) 38,719,442$ 27,599,179$ (0)$ (0)$ 6,295,787$ 20,486,271$ Wholesale Deficiency or (Credit) as a Percent of Volumetric Charges 15.9% 9.7% 0.0% 0.0% 1.9% 6.1%
Projected Water Sales (MGD) 122.1 MGD 122.6 MGD 125.6 MGD 128.6 MGD 129.0 MGD 129.4 MGD Projected Water Sales (CCF) 59,568,373 59,998,214 61,286,335 62,769,560 62,957,869 63,319,230 Wholesale Deficiency or Credit ($/CCF) $0.65 $0.46 $0.00 $0.00 $0.10 $0.32 Wholesale Rate ($/CCF) $4.75 $5.21 $5.21 $5.21 $5.31 $5.63 Projected Service Charge Revenues 4,320,061$ 4,320,061$ 4,320,061$ 4,320,061$ 4,320,061$ 4,320,061$ Projected Volume Charge Revenues 282,949,771$ 312,590,697$ 319,301,806$ 327,029,408$ 334,306,283$ 356,487,263$ Total Wholesale Revenues After Rate Change 287,269,832$ 316,910,758$ 323,621,867$ 331,349,468$ 338,626,344$ 360,807,324$ Calculation of Untreated Water Discount Rate for Coastside County Water District Rate-Setting for Fiscal Year 2023-24
Wholesale Share of HTWTP Expenses to be Removed
Operations & Maintenance 9,933,451$
Cash Funded Capital -$
Debt Service 13,016,807$
Total HTWTP Expense to be Removed 22,950,258$
Total Wholesale Water Consumption (CCF) 59,998,214
Untreated Water Rate Discount ($/CCF) 0.38$
Untreated Water Rate Discount ($/acre foot) 165.53$
Impact on Wholesale and Retail Customers
Untreated Water Rate Discount ($/CCF) (0.38)$
Projected Coastside County Water District Annual Consumption (CCF) 409,082 Net Impact of Untreated Water Rate Discount (155,451)$
Wholesale Retail
Proportional Annual Use 66.95% 33.05%
Allocation of Untreated Water Rate Discount (104,075)$ (51,377)$ Projected Annual Treated Water Usage (CCF) 59,177,098 27,098,598 Average Wholesale Rate Impact ($/CCF) (0.0018)$ (0.0019)$
SAN FRANCISCO PUBLIC UTILITIES COMMISSION
Effective July 1, 2023
SCHEDULE W-25: Wholesale Use with Long-Term Contract
For service to municipalities, water districts and others who, under long- term contracts, purchase water for resale:
First: A Monthly Service Charge base on the type and size of the meter:
Meter
Size
Disc/Compound
Meters
Crest Meters
Electronic
Meters
Turbine Meters
5/8 in.
$11
-
-
-
3/4 in.
$18 - - -
1 in.
$30 - - -
1 1/2 in.
$43 - - -
2 in.
$79 - - -
3 in.
$158 - - -
4 in.
$318
$353
-
$577
6 in.
$476
$685
-
$1,256
8 in.
$635
$1,335
$2,265
$1,875
10 in.
$793
$1,732
$3,769
$3,391
12 in.
$953
$1,840
$5,159
-
16 in.
$1,270
$5,628
-
$7,215
18 in.
-
$6,133
-
-
20 in.
-
$6,349
-
-
The service charge for a battery of meters installed on one service in lieu of one meter or for a special type of meter , shall be based on the size of single or multiple standard type meters of equivalent capacity.
Second: A charge for water delivered based on one-month’s meter readings:
$2,269.48 per acre-foot or $5.21 per 100 cu. ft.
Third: An Untreated Wholesale Water Rate Discount Factor for Wholesale Customers receiving untreated water, based on one-month’s meter readings:
($165.53) per acre-foot or ($0.38) per 100 cu. ft.
155 Bovet Road, Suite 650, ⚫ San Mateo, CA 94402 ⚫ ph 650 349 3000 ⚫ fx 650349 8395 ⚫ www.bawsca.org
March 23, 2023
Mrs. Erin Corvinova, Financial Planning Director
San Francisco Public Utilities Commission
525 Golden Gate Avenue, 4th Floor
San Francisco, CA 94102
Subject: BAWSCA FY 2023-24 Bond Surcharge Schedule
Dear Erin:
Pursuant to Section 3.01 (a) of the Prepayment and Collection Agreement between the Bay Area Water Supply and Conservation Agency (BAWSCA) and the City and County of San Francisco (San Francisco), dated January 1, 2013 (Agreement), BAWSCA shall deliver a written schedule to San Francisco at least 45 days prior to the beginning of each fiscal year showing the amount of the surcharge that BAWSCA seeks to impose for such fiscal year.
Attached is BAWSCA’s FY 2023-24 annual and monthly bond surcharge for each member agency that was adopted by the BAWSCA Board on March 16, 2023. Pursuant to Section 3.02 (a) of the Agreement, San Francisco shall include the identified monthly surcharge in the first wholesale water bill for the largest amount delivered to BAWSCA’s member agencies each month, effective July 1, 2023.
If you have any questions about the billing of BAWSCA’s surcharges, please contact me at (650) 349-3000.
Sincerely,
Christina Tang
Finance Manager
Attachment: BAWSCA FY 2023-24 Bond Surcharges
cc: Nancy Hom, SFPUC
Charles Perl, SFPUC
Alison Kastama, SFPUC
Nicole Sandkulla, BAWSCA
Allison Schutte, BAWSCA Legal Counsel
Attachment
BAWSCA FY 2023-24 Bond Surcharges
Agency
Annual
Bond
Surcharge
Monthly
Bond
Surcharge
Agency
Annual
Bond
Surcharge
Monthly
Bond
Surcharge
Alameda County WD $1,953,084 $162,757 Mid Pen WD $382,716 $31,893 Brisbane Water $88,836 $7,403 Millbrae $259,068 $21,589 Burlingame $535,692 $44,641 Milpitas $603,300 $50,275
Coastside County WD $200,844 $16,737 Mountain View $1,259,184 $104,932 CWS - Bear Gulch $1,741,944 $145,162 North Coast WD $384,468 $32,039 CWS - Mid Peninsula $2,117,772 $176,481 Palo Alto $1,681,620 $140,135 CWS - South SF $1,254,756 $104,563 Purissima Hills WD $284,196 $23,683 Daly City $611,436 $50,953 Redwood City $1,238,604 $103,217 East Palo Alto WD $227,640 $18,970 San Bruno $243,912 $20,326 Estero Municipal ID $594,012 $49,501 San Jose (North) $678,312 $56,526 Guadalupe Valley $13,908 $1,159 Santa Clara $534,180 $44,515 Hayward $2,445,576 $203,798 Stanford University $263,520 $21,960 Hillsborough $382,572 $31,881 Sunnyvale $1,463,484 $121,957 Menlo Park $408,612 $34,051 Westborough WD $64,524 $5,377 Total $21,917,772 $1,826,481