Services of the San Francisco Public Utilities Commission
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
March 18, 2024
TO: Commissioner Tim Paulson, President
Commissioner Anthony Rivera, Vice President
Commissioner Newsha K. Ajami
Commissioner Sophie Maxwell
Commissioner Kate H. Stacey
THROUGH: Dennis J. Herrera, General Manager
FROM: Steven R. Ritchie, Assistant General Manager, Water
RE: 2009 Water Supply Agreement Update
This memo provides our quarterly update on the SFPUC’s activities required by the 2009 Water Supply Agreement (WSA).
Per the WSA, SFPUC provides the following to BAWSCA on an ongoing basis:
• Weekly water delivery data for San Francisco, South/East Bay, and the Peninsula;
• Monthly Hydrologic Conditions Report;
• Monthly water sales data, including “Suburban Resale” and City Retail water use data;
• Water Quality “blend change” notices and other notifications as needed, in accordance with the Water Quality Notification and Communications Plan; • Monthly BAWSCA Bond Surcharge Collection Report per Prepayment and Collection Agreement between BAWSCA and SFPUC;
• Monthly updates on regional Alternative Water Supply planning projects that BAWSCA is directly participating in; and
Since the last update on December 4, 2023, the SFPUC has also completed the following actions:
1. Held several discussions with BAWSCA regarding progress and coordination for the continued planning of the Los Vaqueros Reservoir Expansion project.
2. Met with BAWSCA, San Jose and Santa Clara to collaborate on planning efforts regarding future needs in consideration for their request for permanent status, including a half-day workshop on March 7th.
3. Met to discuss term and appointment of BAWSCA’s representative on the Revenue Bond Oversight Committee.
4. On March 12, 2024, issued final Alternative Water Supply Plan with copies provided to BAWSCA.
5. Continued discussions of minimum purchase quantity amendments with BAWSCA and minimum purchase wholesale customers (WSA Section 3.07.C Attachment H, Section 6.1.1).
6. Continued review of questions submitted as part of the FY 2020-21 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review (WSA Section 7.06).
7. On December 21, 2023, provided BAWSCA and Wholesale Customer FY 2024- 26 Budget and FY 2025-34 Water Enterprise and Hetch Hetchy Enterprise 10- Year Capital Plans for review and comment (WSA 6.09.E).
8. On January 3, 2024, issued FY 2021-22 Wholesale Revenue Requirement Financial Statements.
9. On January 10, 2024, issued FY 2022-23 Wholesale Revenue Requirement Calculation.
10. On January 16, 2024, initiated FY 2022-23 Wholesale Revenue Requirement Compliance Audit.
11. On January 17, 2024, provided the FY 2024-25 Wholesale Water Rate Range to BAWSCA (not required, but related to WSA Section 6.03).
12. On January 19, 2024, received and reviewed the BAWSCA FY 2024-25 Bond Surcharge Schedule.
13. On January 23, 2024, held audit closeout meeting with compliance auditors and BAWSCA for FY 2021-22 Wholesale Revenue Requirement Compliance Audit.
14. Provided a water supply conditions report to the Wholesale Customers on February 1st and March 1st with initial estimates of available water supply in the coming year (WSA Attachment H, Section 6.1.1).
15. Provided a dry-year water supply update on February 1st in the form of a letter to the State legislature and Department of Public Health per AB1823 requirements with a copy to BAWSCA, (not a WSA requirement, but included here for informational purposes).
16. Issued on February 2, 2024, Wholesale Water Fixed Charge Study for wholesale customer comment (WSA Section 6.04).
17. Received and responded to BAWSCA’s February 5, 2024 comment letter on SFPUC's FY 2025-34 Water Enterprise and Hetch Hetchy Enterprise 10-Year Capital Plans.
18. Held Annual Wholesale Customer Meeting on February 15, 2024 (WSA Section
8.03) and presented on expected water supply conditions, capital improvement and maintenance efforts, capital planning and deliverability, rates and financial plans.
19. Helped conduct the quarterly meeting of the Water Quality Committee on February 21, 2024 (WSA Section 3.08.C).
20. Provided an overview and addressed questions related to the Wholesale Water Fixed Charge Study to BAWSCA Water Management Representatives on March 7, 2024.
21. Received and initiated review of questions submitted as part of the FY 2021- 22 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review (WSA Section 7.06).
In the near-term, the SFPUC is working to complete the following actions:
1. Continue review and respond to questions submitted as part of the FY 2020- 21 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review. (WSA Section 7.06).
2. Continue review and respond to questions submitted as part of the FY 2021- 22 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review (WSA Section 7.06).
3. Continue FY 2022-23 Wholesale Revenue Requirement Compliance Audit.
4. Collect and respond to wholesale customer comments on proposed changes to fixed charge rates for FY 2024-25.
5. Approve FY 2024-25 wholesale water rates at May 14, 2024 Commission meeting.
6. Continue discussions on potential amendments to minimum purchase requirements in WSA.
7. Provide forecasts to wholesale customers subject to minimum purchase requirements of expected FY 2023-24 water sales and compliance with minimum purchase requirements.
8. Provide an update on the financial reconciliation work required by 2018 WSA Amendments to asset classification for specific Hetch Hetchy projects.
9. Help conduct the quarterly meeting of the Water Quality Committee (WSA Section 3.08.C).
10. Continue financial reconciliation work required by 2018 WSA Amendments to asset classification for specific Hetch Hetchy projects.
11. Provide final water supply conditions report to the Wholesale Customers in April 2024, of available water supply in the coming year (WSA Attachment H, Section 6.1.1).
Please contact me if you have any questions.
cc: Nicole Sandkulla, BAWSCA CEO/General Manager