rates of the San Francisco Public Utilities — CleanPowerSF Sfpuc Commission, May 14, 2024

AGENDA ITEM
Public Utilities Commission
City and County of San Francisco

DEPARTMENT Financial Services

AGENDA NO.

13 MEETING DATE

May 14, 2024

Public Hearing: Regular Calendar
Project Manager: Erin Corvinova

Adopt Hetch Hetchy Power Rates for FY 2024-25

Summary of
Proposed
Commission
Action:

Public Hearing to consider the adoption of rates of the San Francisco Public Utilities Commission Power Enterprise for Hetch Hetchy Power service to be effective with meter readings beginning on or after July 1, 2024. This action constitutes the Approval Action for the project for the purposes of the California Environmental Quality Act (CEQA) pursuant to section

31.04(h) of the San
Francisco Administrative Code. 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: As required by the San Francisco Charter Section 8B.125, the SFPUC engaged an independent rate consultant, NewGen Strategie s & Solutions, for the 2022 SFPUC Power Rate Study (Study). Following the completion of this study, SFPUC adopted two years rates for Hetch Hetchy Power (Fiscal Year (FY) 2022-23 and Fiscal Year 2023-24). Moving forward, staff plan to adopt one year of rates at a time through FY 2026- 27. This action covers the proposed rates for FY 2024- 25, which were developed by staff using the models and analysis from the 2022 Power Rate Study.

The next independent consultant Power Rate Study is scheduled to be initia ted in Fall of 2024 and be completed in Spring of 2026, to recommend rates beginning FY 2026-27.
2022 SFPUC Power Rates Study
In the 2022 Power Rate Study, the consultant recommended retail rates for two years – FY 2022-23 and FY 2023- 24. The findings for both Power business lines, Hetch Hetchy Power and CleanPowerSF, were summarized in the 2022 Power Rates Study Final Report.

The 2022 Power Rate study not only made recommendations for increasing the total rate revenues, but also brought significant changes to how Hetch Hetc h y Power
Rates are set. A major goal of this study was to transition all customers to standardized rates based on the cost to serve each customer class rather than their legacy groupings (Retail, Enterprise, and Gener al Use). This change is being implemented in a gradual manner to prevent rate shock to any particular customer, so not all customers classes have yet to reach full cost-of-service.

Public Hearing: Adopt Hetch Hetchy Power Rates for FY 2024-25 Commission Meeting Date: May 14, 2024

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Key rate design changes implemented as part of the Study are:
• Establish Mu nicipal General rates per customer class and escalate the all -in effective rate1 for these classes by $0.03/kWh until that rate schedule reaches the calculated cost of service.
• Transition Enterprise and Retail customers to the cost- of-service rate over two fiscal years.

During this transition, the lost revenue from municipal general rates and discount ed rates is reallocated across retail and enterprise rate tariffs. This amount will decrease each year as the municipal rates reach cost of service.

On May 24, 2022, the SFPUC Commission adopted Hetch Hetchy Power FY 2022- 23 and FY 2023-24 rates in Resolution 22-0095.

FY 2023-24 Tuolumne County Rates Update
As part of the 2022 Rates Study, staff identified a handful of small contract rates applicable to customers in Tuolumne County, where Hetch Hetchy Water & Power operates facilit
ies, which had not been updated in many years and were far under their cost of service. While these customers represent less than 0.1% of Hetch Hetchy Power’s total annual energy usage, staff recommends standardizing these rates and gradually bringing them up to cost of service , as required by the San Francisco Charter . After outreach to the impacted customers, the Commission approved Resolution 23-0106, which increased these rates by 50% for FY 2023- 24.

While this is a large percentage increase, these rates remain at 25-35% the cost of service and equivalent retail rates.

FY 2024-25 Rate Setting Overview
The FY 2024- 25 rate setting analysis built off the findings from the 2022 Power Rates study. Notably, because Retail and Enterprise rates have finished their transition to cost -of-service rates effective FY 2023 -24, the action include the consolidation of duplicative Enterprise rate codes into their equivalent retail rates , as discussed more below.

For most retail rates, staff escalated the rates by a 12% straight percentage basis to meet the updated rate revenue requirements. Additionally, this rate update is continuing the annual $0.03/kWh escalation of General Use rates, steadily bringing these rates up to their cost of service. Finally, staff are recommending a few updates to the rate structures to simplify the Shoreside Power rates and address some specific rates impacted by the consolidation of Enterprise and Retail rates.

Retail and General Use Rate Adjustments

1 Effective rates for each customer class are calculated by taking the sum of the customer s in that class, Energy usage, and where applicable, the demand charges, and dividing that value by the total energy used. Effective rates simplify complex power tariff schedules for purposes of modelling revenues, but are sensitive to changes in customer usage patterns, such as using more energy during peak hours or having higher peak demands.

Public Hearing: Adopt Hetch Hetchy Power Rates for FY 2024-25 Commission Meeting Date: May 14, 2024

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Revenue Requirements
The Hetch Hetchy Power revenue requirement is $ 319.1 million, of which $199.8 million is needed from retail sales for FY 2024- 25, a 21.3 percent increase. Costs include operations and m aintenance, power supply and delivery, gas and steam purchase, cash funded capital projects, and annual debt service. Total power supply and operating costs make up the biggest share of revenue requirements comprising 33% and 43% of the total revenue requirement respectively. Cash funded capital and annual debt service make up another 9% of the revenue requirement. Some of the costs incurred by Hetch Hetchy P ower were offset by the use of fund balance, lowering reserves by $31.2 million in FY 2024-25.

Customer Count and Usage Data
The rate update utilized calendar year 2023 billing data from Hetch Hetchy customers and escalated the count of accounts, usage, and demand factors based on projected growth assumptions from the Commission-approved February 2024 10- Year Financial Plan. Below is the distribution of the projected Hetch Hetchy Power customers and their corresponding energy usage for the major customer cl asses.

While residential customers make up the majority of the customer accounts, they are a small, but growing, percentage of the total energy usage.

Customer Class No. of Customers Annual Energy
Usage (MWh)
Residential 3,565 21,044
Small Commercial 3,404 79,684
Medium Commercial 347 162,358
Large Commercial 46 87,573
Industrial 42 630,870
Lighting 21 17,459
Consolidation of Enterprise and Retail Rates
As described above, what were previously called “Enterprise” and “Retail” rates were both transitioned to consistent cost -of-service rates during the two years of rates adopted after the 2022 Power Rate Study. As a result, most Enterprise rates are currently identical to their Retail counterparts. To simplify administration and reduce duplicative tariff schedules, staff propose eliminating most Enterprise rates and transitioning customers to the equivalent Retail rates. This will have no
financial impact on the program or customers.

For a few Enterprise rates, special conditions or historic circumstances mean that there were no identical retail rates. Staff reviewed each of these and recommended different paths forward that aimed to balance fairness, administrative simplicity, and customer impact.

Master Metered Residential Rates
Six Hetch Hetchy customers are multi-family residential users with a single master meter for the entire property, rather than individual meters for each unit and Public Hearing: Adopt Hetch Hetchy Power Rates for FY 2024-25 Commission Meeting Date: May 14, 2024

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common areas. This metering structure is not allowed under current building codes, and most if not all these properties are expected to eventually be renovated with individual meters like the rest of Hetch Hetchy’s residential customer base.

These customers were on specific Enterprise rates for master metered housing; there were no equivalent retail rates for this usage type. To simplify the billing structure, staff recommend eliminating these master metered residential rates and moving these customers to applicable small or medium commercial retail tariffs. A bill analysis found that the change would result in cost savings or annual bill increases under $1,600 for all six customers. Staff have reached out to impacted customers to discuss the change in their tariff schedule and provide information on their new rate structure.

Residential Low-Income Discounts for Households and Common Areas Both Enterprise and R etail residential customers are eligible for various discount programs for low-income households or operators of subsidized affordable housing.

However, the structure of the discount programs is different across the two rate types. All R etail residential customers receive a 30% discount from the otherwise applicable rate schedule. The structure of the Enterprise rate discount programs, however, was copied from PG&E, and is inconsistent across different rate schedules. Individually metered low -income residential customers on Enterprise rates are eligible for 35% discounts off their volumetric charges and 50% off their monthly service charges . Common areas and vacant units in subsidized affordable housing participating in the “Commercial CARE” program (generally, building
owners and property managers) are eligible for a flat $/kWh discount per unit of energy usage, which varies based on the rate schedule. There are currently 27 Hetch Hetchy Power customers on Enterprise discounted rates.

While the underlying rates applicable to these Enterprise and Retail customers are now the same, the provided discounts are different. For fairness, staff recommend moving all discounted customers to the consistent 30% discount currently pr ovided to Hetch Hetchy Retail customers. While this may represent lower discounts for some existing Enterprise customers than they are currently receiving, it’s important to note that even full -
price standard rates are already significantly lower than equivalent PG&E tariffs , so the 30% discount still provides significant value over all alternative tariffs these customers could receive.

Time-of-Use Small and Medium Commercial Rates
Because they were copied from PG&E rate schedules, Small Commercial a nd Medium Commercial Enterprise customers were able to choose from either a seasonal rate or a time- of-use rate with higher energy rates during peak and off - peak time period. For these customers classes, there is no equivalent time -of-use rate on the Retail rate schedules, only a seasonal rate. Approximately 530 customers are currently enrolled on these Enterprise time- of-use rates with no retail equivalent.

Hetch Hetchy Power intends to review its retail rate structure and propose modernized time -of-use rate opti ons for all customer classes as part of the next Power Rate Study. These new rates wil l be developed to reflect Hetch Hetchy Power’s peak time periods and cost differentials, as opposed to the Enterprise time - Public Hearing: Adopt Hetch Hetchy Power Rates for FY 2024-25 Commission Meeting Date: May 14, 2024

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of-use rates which match to old PG&E rate struc tures and time periods. Until these new time-of-use rates are available, staff recommends designating these Enterprise time-of-use rates as “legacy” rates, allowing current customers to remain on them, but no new customers to join. This minimizes changes to customers’ rate schedules but does not add additional enrollment in a rate structure that is not the best fit for the utility’s current operating conditions.

Proposed Retail Hetch Hetchy Power Rates
The updated billing data analysis showed that the 14% rate adjustments that were proposed in the 10- Year Financial Plan would produce more revenue than was originally projected . This difference is driven by changes in customer usage patterns, such as higher demand or more usage in peak hours, which result in higher effective rates/higher revenue per kWh energy used than was forecasted during the 2022 Power Rate Study. As a result, staff recommend reducing the rate increase to 12%. This percentage rate increase collects the same amount of revenues as proposed in the 10-Year Financial Plan and puts the program on- track to meet all SFPUC financial targets, while providing a lower rate increase to Hetch Hetchy Power customers during a difficult economic time.

Proposed General Use Power Rates
General Use Power Rates are set annually to an all-in effective rate equivalent to a $0.03/kWh increase from the prior year . In FY 2024 the effective rate for all General Use tariffs was projected to be $0.15877/kWh. The updated billing analysis found that many of the general use customer classes, particularly those with energy- only rate structures, maintained an effective rate that was proximate to that projected rate. However, some of the larger customer classes with demand charges and complex time -of-use schedules had effective rates that were higher or lower than their target rate due to changing demand profiles since the last rate study. To account for the latest billing data and keep General Use customers on the planned rate increase trajectory, st aff recommend applying the $0.03/kWh increases to the planned effective rate, setting all General Use customers to a re- baselined $0.18877/kWh in FY 2025. As a result , some General Use tariffs are expected to increase less than the expected three cents – as they were already closer to the target rate – while others may see just over a three-cent increase. These rates will align with the proposed budgets for General Use customers, who are primarily General Fund-supported departments of the City & County of San Francisco.

Proposed Tuolumne County Rates
For the three Tuolumne County rate schedules which are significantly below cost of service, staff recommends continued steady increases. Specifically, staff proposes annual increases of $0.03/kWh – consistent with the increases in the General Use rates – or 50%, whichever is lower. This trajectory is expected to continue until the rates reach their cost of service
, which will be examined during the next Power
Rates Study.

Summary of Rate Changes
Due to the complexity of the current rates structure, rate changes vary significantly across different customer classes. The following table summarizes, at a high level, Public Hearing: Adopt Hetch Hetchy Power Rates for FY 2024-25 Commission Meeting Date: May 14, 2024

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the changes for each customer class. The detailed schedule of rates can be found in Sections 3-7 of the attached resolution.

Rate Class Customer Class FY 2024-25 Rate Change
Retail Residential 12.0%
Tuolumne County Residential 50.0%
Retail Small Commercial 12.0%
Enterprise Small Commercial 12.0%
General Use Small Commercial 18.6%
Tuolumne County Small Commercial 40.0% - 50.0%
Retail Medium Commercial 11.4% – 12.2%
Enterprise Medium Commercial 11.4% – 12.0%
General Use Medium Commercial 18.2% – 19.3%
Retail Large Commercial 11.7% – 12.0%
General Use Large Commercial 0.3% - 28.8%
Retail Industrial 11.8% - 12.0%
General Use Industrial 19.5 – 26.8%
Retail Lighting 12.0%
General Use Lighting 18.9%

Shoreside Power Rate Structure Update
The Shoreside Power rate is charged to cruise ships which dock at the Port of San Francisco terminal. While the Port is the SFPUC’s customer, they pass on the charges to cruise ships. When originally implemented, the Shoreside Power rate was a flat $/kWh energy charge. In FY 2023- 24, following the recommendations of the 2022 Power rate study, the SFPUC standardized this rate to equivalent ones in the Industrial rate class, adding seasonality, time -of-use energy, and time -of-use demand charges.

Port and SFPUC staff have been in close contact about these changes, which reflect industry standard rate structures, but which are significantly more challenging to forecast and for Port staff to pro -rate and pass on to cruise ships. To better understand how other cities handle this same issue, staff reached out to the ports and power providers of Los Angeles, San Diego, Seattle, and Long Beach to learn about the rate structures used by these cities and how their ports passed costs along to ships that connect to their power system.

Following a series of meetings with these cities and the Port of San Francisco, staff propose changes to the Shoreside Power rate structure to simplify the rate structure and make it easier to forecast monthl y bills. These changes will make it easier for the Port to estimate bills and pass through costs to cruise ships, while also reducing month-to-
month variation in the average effective rate, which could have a detrimental effect on cruise ship tourism. Thes e changes still reflect the cost of service burdens placed on Hetch Hetchy Power from a high peak demand customer.

The table below provides a summary of the current and proposed S horeside Power rate.

Public Hearing: Adopt Hetch Hetchy Power Rates for FY 2024-25 Commission Meeting Date: May 14, 2024

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Rate Component FY 2023-24 Rates FY 2024-25 Rates
Customer Charge ($ per month) $444.92 $498.31
Summer Energy Charge ($ per kWh)
On-Peak $0.02290 $0.14412
Part-Peak $0.02290 $0.14412
Off-Peak $0.01791 $0.11272
Winter Energy Charge ($ per kWh)
Part-Peak $0.01965 $0.12367
Off-Peak $0.01782 $0.11215
Summer Demand Charge ($ per kW)
On-Peak $4.64 -
Part-Peak $3.84 -
Max $7.54 $6.51
Winter Demand Charge ($ per kW)
Max $7.54 $6.51

Public Outreach and Education
SFPUC staff engaged customers and the general public on the Power Rates Study through a variety of public meetings.

The agency’s Rate Fairness Board has been the primary public venue where Hetch Hetchy Power’s FY 2024- 25 rate -settin
g methodology, objectives, preliminary
analysis, and final tariff proposals have been discussed in a series of meetings on March 1, March 22, April 10, and April 29, 2024.

Additionally, staff has provided ratepayers with additional information about the proposed rate adjustments.

A dedicated power rates landing page at
sfpuc.org/PowerRates has been established with news of upcoming public events, the commission hearing notice, links to presentations, and once adopted the final rates. This website has been promoted through on bill messages, multilingual rate notice bill inserts, e -newsletters, and direct mail postcards.

This information
includes a telephone number customers can call for details. Staff also held a webinar on residential rates and the rate study process on April 30.

Public Hearing Notice
Pursuant to Charter Section 16.112, a Notice of Public Hearing on the establishment of a schedule of rates was published in the official newspaper on April 21, 24, 25, 26, and 28, 2024, and posted on the SFPUC website and at the San Francisco Public Library, for a public hearing on May 14, with possible Commission action on this date.

Board of Supervisors Review
Pursuant to Charter Section 8B.125, Commission action adopting rates and cha rges Public Hearing: Adopt Hetch Hetchy Power Rates for FY 2024-25 Commission Meeting Date: May 14, 2024

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is subject to rejection by the BOS within 30 days of submission to the BOS. Absent BOS rejection, these proposed Hetch Hetchy Power rates will become effective July 1, 2024, and will remain effective until revised.

Environmental
Review:

On April 30, 2024, the San Francisco Planning Department determined the Project to be statutor ily exempt from environmental review under the CEQA section 21080(b)(8) and the CEQA Guidelines s ection 15273 ( Rates, Tolls, Fares and Charges) (Case Number 2024- 003765ENV) related to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges. The exemption determination can be found here:
https://sfpuc.sharefile.com/public/share/web-
s494936fa4b3e42d0933a97d2bf29697c

This action constitutes the Approval Action for the project for the purposes of the CEQA pursuant to San Francisco Administrative Code section 31.04(h).

Attachment: 1. Hetch Hetchy Power FY 2024-25 Revenue Requirement

PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO. __________
WHEREAS, Hetch Hetchy Power provides electric service to municipal, governmental, residential, and commercial customers within the City & County of San Francisco and Tuolumne County at rates set by this Commission; and
WHEREAS, In accordance with Section 8B.125 of the Charter of the City and County of San Francisco, the Commission retained an independent rate consultant, NewGen Strategies & Solutions, to perform a rate study and prepare a report entitled “2022 Power Rates Study Report,” which has been posted to the sfpuc.org website; and WHEREAS, The San Francisco Public Utilities Commission staff have reviewed the independent rate consultant report, and have prepared a staff rate proposal based on the consultant analysis and recommendations; and
WHEREAS, The General Manager finds that power revenues under existing rates are not at cost of service, and recommends adjustments be made to all rates to bring them closer to cost - of-service levels beginning in Fiscal Year 2022-23; and WHEREAS, The Commission adopted Fiscal Year 2023 -23 and Fiscal Year 2023- 24 Hetch Hetchy Power tariffs on May 24, 2022; and
WHEREAS, The Commission adopted Fiscal Year 2023- 24 tariffs for Tuolumne County customers on May 23, 2024; and
WHEREAS, Staff further updated the financial anal ysis using tools developed in the 2022 Power Rate Study; and
WHEREAS, The General Manager finds that Hetch Hetchy Power revenues under existing rates will be insufficient to meet revenue requirements of Hetch Hetchy Power’s 10- Year Financial Plan, and recommends adjustments to Hetch Hetchy Power rates effective July 1, 2024; and
WHEREAS, A Notice of Public Hearing for this proposed rate action was duly provided, and a Public Hearing was held on May 14, 2024, where this proposed action was presented; and WHEREAS, The Rate Fairness Board has reviewed the findings and recommendations and presented the results of its review to this Commission at a public hearing on May 14, 2024; and
WHEREAS, On April 30, 2024, the San Francisco Planning Department determined the Project to be statutor ily exempt from environmental review under the California Environmental Quality Act (CEQA) section 21080(b)(8) and the CEQA Guidelines s ection 15273 (Rates, Tolls, Fares and Charges) (Case Number 2024-003765ENV) related to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges; and WHEREAS, This Commission hereby finds that adoption of this resolution will establish rates for the purpose of (1) meeting operating expenses, including employee wage rates and fringe benefits; (2) purchasing or leasing supplies, equipment, or materials; (3) meeting financial

reserve needs and requirements, and (4) obtaining funds for capital projects necessary to maintain service within existing service areas; now, therefore, be it RESOLVED, The following requirements and Schedules of Hetch Hetchy Power Electric Rates and Charges shall apply to all customers of Hetch Hetchy Power; and be it FURTHER RESOLVED, The existing tariff s E1TB, EL1TB, EM1TB/ES1TB, EMLTB/ESLTB, EMLTH, A1 -S, A1 -P, A10S, A10P, E19S, E19P, E19T, E20S, E20P, and E20T are eliminated, and all customers currently on these rates shall be enrolled in the appropriate tariff schedule as listed below.

Section 1 – Authority and General Purpose
This Resolution is adopted pursuant to Section 8B.125 of the Charter of the City and County of San Francisco for the purpose of establishing a n orderly system for the imposition and collection of charges for the operating, maintenance, replacement, debt service and other costs incurred by the Power Enterprise in generating, acquiring from other sources and delivering electricity for consumptive and other uses to customers receiving Hetch Hetchy Power service from the Power Enterprise.

Section 2 – Customer Classification
Class Determination: Upon application for new service, each Customer shall be assigned to a Customer Class based on the class of electric service requested in the application. Whenever the applicable rate cannot be determined (for instance, for a new service without usage data), SFPUC may assign a temporary rate until electric service qualification parameters for the applicable rate are met. This class determination process is in accordance with the requirements of this resolution and Section VI.19.2 of the SFPUC’s Rules & Regulations Governing Electric Service.

For many commercial and industrial rate schedules, a customer must take service on the rate schedule that corresponds to their maximum monthly demand. A customer’s maximum demand will be assessed based on the prior twelve- month period. If their maximum monthly demand exceeds the maximum demand for their currently assigned rat e schedule for more than 3 months in the prior twelve-month period, they will be transferred to a different commercial rate schedule for subsequent billing cycles.

Change in Classification: Customers may request their rate be reassessed once every twelve- month period. The SFPUC may waive the twelve -month requirement if the Commission approves a new rate that applies to the customer, or the C ustomer’s operating conditions have changed significantly to warrant such a change in applicable rate . These stipulations are outlined in and Section VI.19.3 of the Rules & Regulations Governing Electric Service.

Section 3 – Rates for Residential, Commercial, and Industrial Electric Service The following Schedules of Hetch Hetchy Power Rates apply to most retail non- municipal Hetch Hetchy Power customers. New customers applying for Hetch Hetchy service will pay one of the rates in Section 3 unless they meet the specific eligibility criteria for rates listed herein.

Residential
Residential rates are applicable to customers served through a separate meter or bank of meters who primarily use electricity for domestic purposes. In cases where a meter serves both domestic and commercial uses, the use which requires the majority of the energy usage will determine the appropriate rate.

For residential rates with tiered energy charges, the price of power increases as a customer uses more energy in each billing period. A standard billing period is one month, defined as 30 days. If a customer’s bill falls more than 5 days out side of the 30-day billing period (less than 25 days or greater than 35), the amount of energy in each tier will be “pro- rated,” meaning that it will be adjusted to reflect the proportional amount above or below the standard 30-day bill period.

Residential rates vary based on the summer vs. the winter season, which is defined in Section 9 – Seasonal and Time of Use Periods.

Schedule R-1: Residential, Gas Heating
Eligibility: Applicable to individually metered residential customers whose heating source is natural gas.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $8.10
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 227 kWh) $0.25502
Tier 2 (227 kWh - 524 kWh) $0.30603
Tier 3 (Over 524 kWh) $0.45904
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 252 kWh) $0.25502
Tier 2 (252 kWh - 579 kWh) $0.30603
Tier 3 (Over 579 kWh) $0.45904

Schedule R-1E: Residential, Electric Heating
Eligibility: Applicable to individually metered residential customers whose heating source is electricity.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $8.10
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 250 kWh) $0.25502
Tier 2 (250 kWh - 578 kWh) $0.30603
Tier 3 (Over 578 kWh) $0.45904
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 418 kWh) $0.25502
Tier 2 (418 kWh - 960 kWh) $0.30603
Tier 3 (Over 960 kWh) $0.45904

Schedule R-2: Residential Low-Income, Gas Heating
Eligibility: Applicable to individually metered residential customers whose heating source is natural gas, and who meet the income guidelines established in Section D Rule 9 of the SFPUC Rules and Regulations Governing Water Service to Customers. These rules and regulations currently require customers to have a maximum gross household income, before taxes and deductions, below 200% of the Federal Poverty Level.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $5.67
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 227 kWh) $0.17852
Tier 2 (227 kWh - 524 kWh) $0.21422
Tier 3 (Over 524 kWh) $0.32133
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 252 kWh) $0.17852
Tier 2 (252 kWh - 579 kWh) $0.21422
Tier 3 (Over 579 kWh) $0.32133

Schedule R-2E: Residential Low-Income, Electric Heating Eligibility: Applicable to low -income residential customers whose heating source is electricity, and who meet the income guidelines established in Section D Rule 9 of the SFPUC Rules and Regulations Governing Water Service to Customers. These rules and regulations cur rently require customers to have a maximum gross household income, before taxes and deductions, below 200% of the Federal Poverty Level.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $5.67
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 250 kWh) $0.17852
Tier 2 (250 kWh - 578 kWh) $0.21422
Tier 3 (Over 578 kWh) $0.32133
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 418 kWh) $0.17852
Tier 2 (418 kWh - 960 kWh) $0.21422
Tier 3 (Over 960 kWh) $0.32133

Schedule REV-1: Residential with Electric Vehicle
Eligibility: Applicable to residential customers operating registered, street-legal electric vehicles and who are taking service under Schedule R -l or R-1E. Customers participating in this schedule will receive one bill for the combined electric consumption of the home use and electric vehicle.

A customer may elect to request separate service for the charging station and will be billed for the home service under the Schedule R -l or other applicable residenti al tariff and for the electric vehicle under Schedule EV-1.

Applications for service under this schedule must include proof of registration of the vehicle(s).

Customers taking service under this schedule must re -qualify annually by submitting an application and proof of current California registration of the vehicle.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $8.10
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 400 kWh) $0.25502
Tier 2 (400 kWh - 728 kWh) $0.30603
Tier 3 (Over 728 kWh) $0.45904
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 568 kWh) $0.25502
Tier 2 (568 kWh - 1110 kWh) $0.30603
Tier 3 (Over 1110 kWh) $0.45904

Schedule R-M: Residential Medical Necessity Assistance Program, Gas Heating Eligibility: Applicable to residential customers who have submitted an application and certified in writing that a one full-time resident in the customer's home meets the following conditions:

1. The resident is dependent on an electrically powered life-support device plugged into the home electric system such as an aerosol tent, pressure pad, apnea monitor, pressure pump, compressor, respirator, electronic nerve simulator, suction machine, ultrasound nebulizer, electrostatic nebulizer, inhalation pulmonary pressure breather machine iron lung, dialysis machine, hemodialysis machine, motorized wheelchair, or oxygen generator to sustain the life of the person or to prevent deterioration of the person's medical condition; or

2. A parap legic, hemiplegic, or quadriplegic, multiple sclerosis, neuromuscular or scleroderma patient or person with a compromised immune system being treated for a life-threatening illness that requires special electrically-powered heating and/or cooling to sustain the life of the patient/person or to prevent deterioration of the patient/person's medical condition.

Applications for the Medical Necessity Assistance Program must include certification by a physician or surgeon licensed in the State of California, or by a person licensed by the State of California in accordance with the Osteopathic Initiative Act, that the person named in the application qualifies for the Medical Necessity Assistance Program.

Recertification: Unless a permanent disability is demonstrate d, applications for the Medical Necessity Assistance Program must be submitted annually, in accordance with rules and procedures provided by the General Manager.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $8.10
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 727 kWh) $0.25502
Tier 2 (727 kWh - 1024 kWh) $0.30603
Tier 3 (Over 1024 kWh) $0.45904
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 752 kWh) $0.25502
Tier 2 (752 kWh - 1079 kWh) $0.30603
Tier 3 (Over 1079 kWh) $0.45904

Schedule R-ME: Residential Medical Necessity Assistance Program, Electric Heating Eligibility: Applicable to residential user with all electric heating who have submitted an application and certified in writing that a one full -time resident in the customer's home meets the following conditions:

1. The resident is dependent on an electrically powered l ife-support device plugged into the home electric system such as an aerosol tent, pressure pad, apnea monitor, pressure pump, compressor, respirator, electronic nerve simulator, suction machine, ultrasound nebulizer, electrostatic nebulizer, inhalation pul monary pressure breather machine iron lung, dialysis machine, hemodialysis machine, motorized wheelchair, or oxygen generator to sustain the life of the person or to prevent deterioration of the person's medical condition; or

2. A paraplegic, hemiplegic, or quadriplegic, multiple sclerosis, neuromuscular or scleroderma patient or person with a compromised immune system being treated for a life-threatening illness that requires special electrically-powered heating and/or cooling to sustain the life of the patie nt/person or to prevent deterioration of the patient/person's medical condition.

Recertification: Unless a permanent disability is demonstrated, applications for the Medical Necessity Assistance Program must be submitted annually, in accordance with rules and procedures provided by the General Manager.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $8.10
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 750 kWh) $0.25502
Tier 2 (750 kWh - 1078 kWh) $0.30603
Tier 3 (Over 1078 kWh) $0.45904
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 918 kWh) $0.25502
Tier 2 (918 kWh - 1460 kWh) $0.30603
Tier 3 (Over 1460 kWh) $0.45904

Residential Low Income Common Area & Vacant Units
Accounts which serve the common areas of a residential building (such as garages, hallways, community rooms, or courtyards) or unoccupied residential units may be billed to the property owner or building manager. Because these are not primarily used for domestic purposes, they are typically served under an applicable commercial or industrial rate. However, these accounts are eligible for a discounted rate if all occupants of a building meet the criteria for a low -income discount, as defined by the State of California’s CARE program. Eligible commercial accounts meeting these criteria will receive a 30% discount off all electric service charges.

Small commercial energy rates vary based on the summer vs. the winter season, which is defined in Section 9 – Seasonal and Time of Use Periods.

The monthly customer charge for small commercial rates varies based on whether the customer is served by a single -phase meter or a poly phase meter. See Section 10 – Definitions for more information.

Schedule C-1: Small Commercial
Eligibility: Applicable to small commercial customers.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month)
Single Phase Meter (S) $16.03
Poly Phase Meter (P) $40.10
Summer Energy Charge ($ per kWh) $0.33242
Winter Energy Charge ($ per kWh) $0.26714

Medium Commercial (Demand 75-500 kW)
Medium commercial customers are commercial, industrial and other general non -residential customers with maximum demand between 75 kW and 500 kW served through a separate meter or bank of meters. Maximum demand for purposes of rate schedule eligibility is assessed as defined in Section 2 – Customer Classification. Medium commercial energy rates vary based on the summer vs. the winter season, which is defined in Section 9 – Seasonal and Time of Use Periods.

Schedule C-2S: Medium Commercial, Secondary Voltage
Eligibility: Applicable to medium commercial customers served at secondary voltage.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $285.72
Energy Charge ($ per kWh)
Summer $0.21129
Winter $0.17205
Demand Charge ($ per kW) $23.18
Schedule C-2P: Medium Commercial, Primary Voltage
Eligibility: Applicable to medium commercial customers served at primary voltage.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $267.13
Energy Charge ($ per kWh)
Summer $0.19066
Winter $0.15547
Demand Charge ($ per kW) $19.17

Large Commercial (Demand 500-1000 kW)
Large commercial customers are commercial, industrial and other general non -residential customers with maximum demand between 500 kW and 1000 kW served through a separate meter or bank of meters. Maximum demand for purposes of rate schedule eligibility is assessed as defined in Section 2 – Customer Classification . Large commercial rates vary based on the summer vs. the wi nter season, and by the time period during which power is used (the “peak,” “part peak,” or “off peak” period). These are defined in Section 9 – Seasonal and Time of Use Periods.

Schedule C-3S: Large Commercial, Secondary Voltage
Eligibility: Applicable to large commercial customers served at secondary voltage.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $1,858.43
Summer Energy Charge ($ per kWh)

On-Peak $0.13578
Part-Peak $0.13578
Off-Peak $0.11165
Winter Energy Charge ($ per kWh)
Part-Peak $0.12014
Off-Peak $0.11157
Summer Demand Charge ($ per kW)
On-Peak $17.29
Part-Peak $14.10
Maximum $31.63
Winter Demand Charge ($ per kW)
Maximum $31.63

Schedule C-3P: Large Commercial, Primary Voltage
Eligibility: Applicable to large commercial customers served at primary voltage.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $1,740.03
Summer Energy Charge ($ per kWh)

On-Peak $0.10555
Part-Peak $0.10555
Off-Peak $0.08760
Winter Energy Charge ($ per kWh)
Part-Peak $0.09391
Off-Peak $0.08753
Summer Demand Charge ($ per kW)

On-Peak $14.44
Part-Peak $12.07
Maximum $25.68
Winter Demand Charge ($ per kW)
Maximum $25.68

Industrial (Demand >1000 kW)
Industrial customers are commercial, industrial and other general non- residential customers with maximum demand greater than 1000 kW served through a separate meter or bank of meters.

Maximum demand for purposes of rate schedule eligibility is assessed as defined in Section 2 – Customer Classification. Industrial rates vary based on the summer vs. the winter season, and by the time period during which power is used (the “peak,” “part -peak,” or “off -peak” period).

These are defined in Section 9 – Seasonal and Time of Use Periods.

Schedule I-1S: Industrial, Secondary Voltage
Eligibility: Applicable to industrial customers served at secondary voltage.

Rate Component FY 2024-25 Rates
Customer Charge $1,859.67
Summer Energy Charge ($ per kWh)

On-Peak $0.12197
Part-Peak $0.12197
Off-Peak $0.10114
Winter Energy Charge ($ per kWh)
Part-Peak $0.10840
Off-Peak $0.10076
Summer Demand Charge ($ per kW)

On-Peak $18.36
Part-Peak $14.46
Maximum $32.68
Winter Demand Charge ($ per kW)
Maximum $32.68

Schedule I-1P: Industrial, Primary Voltage
Eligibility: Applicable to industrial customers served at primary voltage.

Rate Component FY 2024-25 Rates
Customer Charge $1,785.82
Summer Energy Charge ($ per kWh)

On-Peak $0.11878
Part-Peak $0.11878
Off-Peak $0.09876
Winter Energy Charge ($ per kWh)
Part-Peak $0.10574
Off-Peak $0.09839
Summer Demand Charge ($ per kW)

On-Peak $18.63
Part-Peak $15.39
Maximum $30.24
Winter Demand Charge ($ per kW)
Maximum $30.24
Schedule I-1T: Industrial, Transmission Voltage
Eligibility: Applicable to industrial customers served at transmission voltage.

Rate Component FY 2024-25 Rates
Customer Charge $1,740.03
Summer Energy Charge ($ per kWh)

On-Peak $0.11735
Part-Peak $0.11735
Off-Peak $0.09753
Winter Energy Charge ($ per kWh)
Part-Peak $0.10444
Off-Peak $0.09716
Summer Demand Charge ($ per kW)

On-Peak $22.94
Part-Peak $22.94
Maximum $20.70
Winter Demand Charge ($ per kW)
Maximum $20.70

Schedule SS: Shoreside Power
Eligibility: Rates for electric service to ships using shore power at Port of San Francisco facilities, and with maximum demands equivalent to industrial customers, as defined above.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $498.31
Summer Energy Charge ($ per kWh)

On-Peak $0.14412
Part-Peak $0.14412
Off-Peak $0.11272
Winter Energy Charge ($ per kWh)

Part-Peak $0.12367
Off-Peak $0.11215
Summer Demand Charge ($ per kW)
Max $6.51
Winter Demand Charge ($ per kW)
Max $6.51

Electric Vehicles
Electric vehicle rate customers are those who use electricity solely for charging one or more electric vehicle.

For schedule EV-1, the time -of-use periods are different than in other rate schedules. The time - of-use periods for EV-1 are:

Peak 4:00 pm – 9:00 pm Every day
Off-Peak 9:00 pm – 4:00 pm Every day

Schedule EV-1: Electric Vehicle Charging
Eligibility: Applicable to customers with a meter serving only charging station(s) for a street legal electric vehicle. The meter may be used by the customer directly, or may be available for public, employee, or other general usage.

This is a pilot rate subject to change at the discretion of SFPUC. Customers wishing to change to the EV-1 rate should contact the SFPUC, and must have an SFPUC -owned interval meter and equipment installed.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $16.03
Energy Charge ($ per kWh)
On-Peak $0.36981
Off-Peak $0.25814

Lighting and Traffic Control
Lighting and traffic control tariffs are for usage by traffic control signals or metered streetlights.

Schedule TC-1: Traffic Control Signals
Eligibility: Applicable to unmetered traffic control equipment that operates on a 24-hour basis.

Rate Component FY 2024-25 Rates
Energy Charge ($/kWh) $0.29751
Schedule LS-3: Street Lighting
Eligibility: Applicable to street lighting or outdoor lighting customers.

Rate Component FY 2024-25 Rates
Energy Charge ($/kWh) $0.29751

Section 4 – Rates for Enterprise Municipal Electric Service The following Hetch Hetchy Power Rates are only applicable to customers who were enrolled in one of these rate schedules as of July 1, 2024, which includes certain municipal, governmental, and commercial customers, referred to as “Enterprise” customers.

New customers will not be placed on one of these rates, and must instead enroll in one of the applicable tariffs in Section 3 – Rates for Residential, Commercial, and Industrial Electric Service.

Residential Low-Income Common Area & Vacant Units, Voluntary Commercial Accounts which serve the common areas of a residential building (suc h as garages, hallways, community rooms, or courtyards) or unoccupied residential units may be billed to the property owner or building manager. Because these are not primarily used for domestic purposes, they are typically served under an applicable comme rcial or industrial rate. However, these accounts are eligible for a discounted rate if all occupants of a building meet the criteria for a low -income discount, as defined by PG&E’s CARE program. Eligible commercial accounts meeting these criteria will receive a 30% discount off all electric service charges.

Small commercial energy rates vary based on the summer vs. the winter season, which is defined in Section 9 – Seasonal and Time of Use Periods.

Schedule A-1US/A-1UP: Enterprise Small Commercial Time-of-Use Eligibility: Applicable to small commercial customers who elect for a time of use option , and who are eligible for Enterprise rates. Schedule A-1US/A-1UP is a legacy rate and does not allow new customer enrollment.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month)
Single Phase Meter (S) $16.03
Poly Phase Meter (P) $40.10
Summer Energy Charge ($ per kWh)
On-Peak $0.35904
Part Peak $0.35904
Off Peak $0.30691
Winter Energy Charge ($ per kWh)
Part Peak $0.27440
Off Peak $0.26058

Medium commercial energy rates vary based on the summer vs. the winter season, which is defined in Section 9 – Seasonal and Time of Use Periods.

Schedule A-10US: Enterprise Medium Commercial Time-of-Use, Secondary Voltage Eligibility: Applicable to medium commercial customers served at secondary voltage, who elect for a time of use option, and who are eligible for Enterprise rates. Schedule A-10US is a legacy rate and does not allow new customer enrollment.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $285.72
Summer Energy Charge ($ per kWh)
On-Peak $0.23414
Part-Peak $0.23414
Off-Peak $0.18930
Winter Energy Charge ($ per kWh)
Part-Peak $0.17988
Off-Peak $0.16498
Demand Charge ($ per kW) $23.18
Schedule A-10UP: Enterprise Medium Commercial Time-of-Use, Primary Voltage Eligibility: Applicable to medium commercial customers served at primary voltage, who elect for a time of use option, and who are eligible for Enterprise rates. Schedule A-10UP is a legacy rate and does not allow new customer enrollment.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $267.13
Summer Energy Charge ($ per kWh)
On-Peak $0.21114
Part-Peak $0.21114
Off-Peak $0.17093
Winter Energy Charge ($ per kWh)
Part-Peak $0.16249
Off-Peak $0.14912
Demand Charge ($ per kW) $19.17

Section 5 – Rates for General Use Municipal Electric Service The following Hetch Hetchy Power Rates are only applicable to customers who were on Schedule M -2 as of July 1, 2022, which includes certain municipal, governmental, and commercial customers, referred to as “General Use” customers. New customers will not be placed on one of these rates unless they are new facilities operated by one of the following City departments, government agencies, or organizations:

General Use Customers
Asian Art Museum of San Francisco
California Academy of Sciences
City College of San Francisco
The Exploratorium
San Francisco Adult Probation Department
San Francisco Arts Commission
San Francisco City Administrator’s Office (except Convention Facilities, Bill Graham Civic Auditorium, and Public Works Street & Sewer Repair and Street Environmental Services) San Francisco City Attorney’s Office
San Francisco Department of Child Support Services
San Francisco Department of Elections
San Francisco Department of Emergency Management
San Francisco Department of Homelessness & Supportive Housing San Francisco Department of Public Health
San Francisco District Attorney
San Francisco Fire Department
San Francisco Health Service System
San Francisco Human Services Agency
San Francisco Juvenile Probation Department
San Francisco Mayor’s Office of Housing & Community Development San Francisco Municipal Transit Agency (except Traffic Engineering and Parking Authority) San Francisco Police Department
San Francisco Public Defender’s Office
San Francisco Recreation & Parks Department (except Yacht Harbor) San Francisco Sheriff’s Department
San Francisco Unified School District
San Francisco War Memorial
San Francisco Zoo

Small Commercial (Demand <75 kW)
Small commercial customers are commercial, industrial and other general non -residential customers with maximum demand less than 75 kW served through a separate meter or bank of meters. Maximum demand for purposes of rate schedule eligibility is assessed as defined in Section 2 – Customer Classification. Small commercial energy rates vary based on the summer vs. the winter season, which is defined in Section 9 – Seasonal and Time of Use Periods.

Schedule CG-1S/CG-1P: General Use Small Commercial
Eligibility: Applicable to small commercial customers who are eligible for General Use rates.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month)
Single Phase Meter (S) $10.11
Poly Phase Meter (P) $25.29
Summer Energy Charge ($ per kWh) $0.20563
Winter Energy Charge ($ per kWh) $0.16446

Medium commercial energy rates vary based on the summer vs. the winter season, which is defined in Section 9 – Seasonal and Time of Use Periods.

Schedule CG-2S General Use: Medium Commercial, Secondary Voltage Eligibility: Applicable to medium commercial customers served at secondary voltage who are eligible for General Use rates.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $214.82
Summer Energy Charge ($ per kWh) $0.15043
Winter Energy Charge ($ per kWh) $0.12094
Demand Charge ($ per kW) $17.43

Schedule CG-2P: General Use Medium Commercial, Primary Voltage Eligibility: Applicable to medium commercial customers served at primary voltage who are eligible for General Use rates.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $230.15
Summer Energy Charge ($ per kWh) $0.15461
Winter Energy Charge ($ per kWh) $0.12429
Demand Charge ($ per kW) $16.52

Large commercial rates vary based on the summer vs. the winter season, and by the time period during which power is used (the “peak,” “part -peak,” or “off-peak” period). These are defined in Section 9 – Seasonal and Time of Use Periods.

Schedule CG-3S: General Use Large Commercial, Secondary Voltage Eligibility: Applicable to large commercial customer s served at secondary voltage who are eligible for General Use rates.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $1,739.94
Summer Energy Charge ($ per kWh)

On-Peak $0.11076
Part-Peak $0.11076
Off-Peak $0.08818
Winter Energy Charge ($ per kWh)
Part-Peak $0.07876
Off-Peak $0.07219
Summer Demand Charge ($ per kW)

On-Peak $16.19
Part-Peak $13.20
Maximum $29.60
Winter Demand Charge ($ per kW)
Maximum $29.60

Schedule CG-3P: General Use Large Commercial, Primary Voltage Eligibility: Applicable to large commercial customers served at primary voltage who are eligible for General Use rates.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $1,535.96
Summer Energy Charge ($ per kWh)

On-Peak $0.07775
Part-Peak $0.07775
Off-Peak $0.06190
Winter Energy Charge ($ per kWh)
Part-Peak $0.06748
Off-Peak $0.06184
Summer Demand Charge ($ per kW)

On-Peak $12.74
Part-Peak $10.66
Maximum $22.67
Winter Demand Charge ($ per kW)
Maximum $22.67

Maximum demand for purposes of rate schedule eligibility is assessed as defined in Section 2 – Customer Classification.

Industrial tariffs vary based on the summer vs. the winter season, and by the time period during which power is used (the “peak,” “part -peak,” or “off -peak” period). Section 9 – Seasonal and Time of Use Periods.

Schedule IG-1S: General Use Industrial, Secondary Voltage Eligibility: Applicable to industrial customers served at secondary voltage who are eligible for General Use rates.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $1,932.22
Summer Energy Charge ($ per kWh)

On-Peak $0.09938
Part-Peak $0.09938
Off-Peak $0.07774
Winter Energy Charge ($ per kWh)
Part-Peak $0.08528
Off-Peak $0.07734
Summer Demand Charge ($ per kW)

On-Peak $19.08
Part-Peak $15.02
Maximum $33.96
Winter Demand Charge ($ per kW)
Maximum $33.96

Schedule IG-1P: General Use Industrial, Primary Voltage Eligibility: Applicable to industrial customers served at primary voltage who are eligible for General Use rates.

Rate Component FY 2024-25 Rates
Customer Charge ($ per month) $1,815.68
Summer Energy Charge ($ per kWh)

On-Peak $0.09346
Part-Peak $0.09346
Off-Peak $0.07311
Winter Energy Charge ($ per kWh)
Part-Peak $0.08020
Off-Peak $0.07274
Summer Demand Charge ($ per kW)

On-Peak $18.94
Part-Peak $15.65
Maximum $30.75
Winter Demand Charge ($ per kW)
Maximum $30.75

Lighting
General Use lighting customers are unmetered load used for street or outdoor lighting. As the load is unmetered, monthly charges are estimated based on the type and voltage of the installed light fixture.

Schedule LG: General Use Lighting
Eligibility: Applicable to st reet lighting or outdoor lighting customers who are eligible for General Use rates.

Rate Component FY 2024-25 Rates
Energy Charge ($ per kWh) $0.18877

Section 6 – Tuolumne County Rates
The following Hetch Hetchy Power Rates are only applicable to facilities located within Tuolumne County which were on one of these rate schedules as of July 1, 2023. New customers will not be placed on one of these rates.

Residential
Schedule UH0050: Hetch Hetchy Water and Power Employee Housing Eligibility: Applicable to residents of housing owned and operated by the SFPUC within Tuolumne County.

Rate Component FY 2024-25 Rates
Energy Charge ($ per kWh) $0.07875

Small Commercial
Schedule UH0044: California Department of Fish & Wildlife Eligibility: Applicable to facilities operated by the California Department of Fish & Wildlife within Tuolumne County currently provided electricity by Hetch Hetchy Water & Power.

Rate Component FY 2024-25 Rates
Energy Charge ($ per kWh) $0.07875
Schedule UH0050: United States Forest Service
Eligibility: Applicable to facilities operated by the United States Forest Service within Tuolumne County currently provided electricity by Hetch Hetchy Water & Power.

Rate Component FY 2024-25 Rates
Energy Charge ($ per kWh) $0.10500

Section 7 – Hetch Hetchy Power Premium
Eligibility: Applicable to Hetch Hetchy customers who apply on a first come, first served basis.

Through this premium, they are provided the opportunity to receive 100 percent renewable energy that meets California’s Renewable Portfolio Standards (RPS). Hetch Hetchy P ower Premium is also considered a zero- carbon-intensity electric energy pathway under the California Air Resources Board’s Low -Carbon Fuel Standard (LCFS) Program. The combined total of all enrolled customers in this tariff is limited to 200,000 megawatt- hours per year. Customers must request to be enrolled.

Hetch Hetchy Power Premium is a premium surcharge that will be added to all kWh energy usage on customer’s otherwise applicable rate schedule. The premium for each Hetch Hetchy rate schedule is as follows:

Rate Component FY 2024-25 Rates
Energy Surcharge ($ per kWh) $0.008

General Use Municipal Customers
For customers taking energy on one of the rate schedules in Section 5 – Rates for General Use Municipal Electric Service, and who are participating in the Low Carbon Fuel Standard program, the surcharge above does not apply to any kWh energy used to earn LCFS credits. Instead, customers are provided Hetch Hetchy Power Premium at no additional cost and must pay a fee equivalent to 50% of the revenues from the sale of LCFS credits with Hetch Hetchy Power. In addition, Hetch Hetchy Power will provide services related to the participation in the LCFS Program, including quarterly and annual reporting assistance, credit tracking, and credit sales.

Section 8 – Net Energy Metering Tariffs
Schedule NEM-SFPUC: Net Energy Metering
Applicability
A. This Schedule Net Energy Metering-SFPUC (NEM-SFPUC) is applicable to service for eligible SFPUC customers who site a Renewable Electric Generating Facility on their owned, rented, or leased premises within the SFPUC service area located where SFPUC operates the local distribution system and is able to use exported energy to serve SFPUC customers.

B. This Schedule is available upon request, on a first -come, first -served basis for eligible customers until the total rated generating capacity used by eligible customers exceeds 5 percent of SFPUC’s aggregate customer peak demand. When this total rated generating capacity exceeds 5 percent of SFPUC’s aggregate customer peak demand, this schedule is closed to new customers.

C. The eligible customer must submit an application for Net Energy Me tering. Upon acceptance by SFPUC, the customer must execute a Net Energy Metering Acknowledgement or any other document containing substantially the terms and conditions of the Acknowledgement as determined by SFPUC in order to receive services under this Schedule.

Definitions
“Annual True-up Period” means the twelve-month period commencing in May of each year. “Net Electricity Consumer” means a Customer that exports less electricity from its Renewable Electrical Generation Facility during an Annual True -up Period than is delivered by SFPUC to the Customer during the same period.
“Net Electricity Generator” means a Customer that exports more electricity from its Renewable Electrical Generation Facility during an Annual True -up Period than is delivered by SFP UC to the Customer during the same period.

“Renewable Electricity Generation Facility” means a facility that generates electricity from a renewable source listed in California Public Resources Code Section 25741(a)(1)1 for the purpose of NEM-SFPUC and that is:
a. located on the customer’s owned, rented, or leased premises; b. equal to or less than 1 MW (AC) in design capacity;
c. interconnected for parallel operation with the local distribution system; and d. sized principally to offset part or all the customer’s own on-site electrical requirements. If there is a material and permanent change to the customer’s electrical requirements such that the renewable facility output exceeds the customer’s load, SFPUC may reassess the customer’s eligibility for this Schedule.

Metering
A. The customer meter must be capable of accurately measuring the flow of energy in both directions. If the existing meter is not an interval meter capable of accurately measuring the flow of energy in both directions and being read remotely by SFPUC in a manner that allows accurate billing under the customer’s applicable rate, SFPUC will install a new meter or cause one to be installed, and the customer shall be responsible for reimbursing all costs of purchasing and installing that meter. If needed, the customer shall install the appropriate meter socket.

B. The meter shall satisfy the requirements of this section and all applicable federal, state, and local safety and performance standards. If the renewable facility will export electricity through an interconnection to PG&E’s distribution system, the meter must also satisfy any PG&E meter requirements.

C. SFPUC may install an additional meter at its own expense with the consent of the customer. The additional meter shall be used only to provide the information necessary to accurately bill or credit the customer and/or to collect generating system performance information for research purposes.

Billing, Settlement and Net Surplus Compensation Rate
Monthly Bills
A. Each customer will be billed monthly. All charges under the customer’s otherwise applicable rate schedule shall be in effect and, except for Net Electricity generators as set forth in the “Annual Settlement” section below, all charges shall be due and payable on a monthly basis. The monthly billi ng statement will reflect the customer’s net electricity consumption, charges incurred, generation bill credits from previous billing cycles, and credits generated during the current billing period. The monetary value of any excess generation during a monthly billing cycle shall be calculated as follows:

1. For customers on a Flat Rate Schedule: If in any monthly billing cycle, the electricity delivered by SFPUC is less than the electricity received by SFPUC from the Renewable Electricity Generation Facility, the value of the excess kilowatt-hours (kWh) generated during the monthly billing cycle shall be calculated according to the electricity usage charges of the customer’s otherwise applicable rate schedule. This amount will be carried over as a monetary cred it to

the next billing cycle and credited against electricity use (kWh) charges on future bills for that account until the end of the Annual True-up Period.

2. For customers on a Time -of-Use Rate (“TOU”) Schedule: If in any monthly billing cycle, the electric ity delivered by SFPUC is less than the electricity received by SFPUC from the Renewable Electricity Generation Facility, during any TOU period, the value of the excess kilowatt -hours (kWh) produced during that TOU period shall be calculated according to t he electricity usage charges of the customer’s otherwise applicable rate schedule. If the aggregate electricity usage charges and credits summed across all TOU periods result in a net credit for the billing cycle, this amount will be carried over as a mone tary credit to the next billing cycle and credited against electricity use (kWh) charges on future bills for that account until the end of the Annual True-up period.

B. Residential and small commercial customers may elect to pay the electricity usage charge portion of the billing statement monthly or at the annual settlement. All non -electricity usage charges, such as fees, surcharges, and taxes shall be due and payable on a monthly basis regardless of the customer’s election.

1. For customers who elect monthly payment, net electricity usage charges are due and payable per applicable monthly billing schedules.

2. For customers who elect annual payment of electricity usage charges, the customer’s net electricity charges and credits, as calculated on a monthly basis, will be carried over until the end of the Annual True -Up Period when payment will be due and payable in accordance with Section C, below.

3. For the purposes of this Schedule, “Small commercial customer” means a commercial customer that has a maximum peak demand of less than 75 kilowatts.

4. A customer may change its billing election within 30 days after each annual settlement is completed.

C. All customers other than residential and small commercial customers must pay the net balance of moneys owed on a monthly basis.

Annual Settlement
A. At the end of the Annual True-up Period, SFPUC will determine whether the Customer is a Net Electricity Consumer or a Net Electricity Generator during the preceding Annual True-up Period. For new customers, the Annual True -up Period will cover the period starting on the date that the Customer commences service under this NEM -SFPUC Schedule through the Customer’s April billing cycle.

B. If the customer is a Net Electricity Consumer, SFPUC will calculate the net compensation owed to SFPUC in accordance with the customer’s otherwise applicable rate schedule and the customer must pay the full amount owed in accordance with the SFPUC’s Rules for electricity service. For new customers commencing service under this NEM-SFPUC Schedule less than 12 months prior to the April true -up date, any remaining monetary bill credits will be carried over to the next twelve -month period on a one time only basis. For all other customers, any remaining monetary bill credits will be zeroed out.

C. If the customer is a Net Electricity Generator, the customer must elect either:

1. Net surplus electricity compensation for any net surplus electricity generated during the prior Annual True -up Period, with any remaining credit balance reset to zero, or

2. Carryover of any remaining monetary bill credits to the next Annual True -up Period, to be applied as a credit for future electricity use (kWh) charges. A customer that chooses this option will lose any opportunity to receive net surplus electricity compensation for these credits in the future.

3. In the case of a customer that does not affirmatively elect to receive either net surplus electricity compensation or carryover of credits, SFPUC shall have no obligation to provide compensation or credits for the electricity rec eived from the customer during that twelve -month period, and any remaining credit balance will be reset to zero.

4. A customer may change its current election for net surplus electricity compensation by submitting that change to the SFPUC at least 30 days pri or to the April true-up date.

D. The Net Surplus Electricity Compensation rate for each kilowatt -hour of net electricity production during the Annual True-up Period is:

1. If the customer does not own the rights to the Renewable Energy Credits (“RECs”) associated with the Renewable Electric Generation Facility or elects to retain them for the customer’s own use, the Net Surplus Electricity Compensation rate is $0.04 per kWh.

2. If the customer owns the rights to the RECs produced by the Eligible Renewable Electric Generation Facility and elects to transfer to the SFPUC the RECs associated with the net surplus electricity produced, the Net Surplus Electricity Compensation rate is $0.05 per kWh.

E. If the customer terminates the contractual relationship with SFPUC, SFPU C shall reconcile the customer’s consumption and production of electricity during the relevant portion of the twelve-month period following the last annual settlement and calculate the net credit or net bill as provided in this section. Any credits carried over from prior twelve-month periods that cannot be netted against remaining electricity use (kWh) charges will be zeroed out.

Safety, Standards and Inspections
A. If the Renewable Electricity Generati on Facility will be interconnected to SFPUC’s distribution system, the customer must satisfy all applicable SFPUC interconnection requirements and receive SFPUC approval to interconnect. In instances where the renewable facility connection requires SFPUC to meet responsibilities regarding its interconnection wit h the PG&E distribution system the customer must satisfy all applicable PG&E interconnection rules and regulations. The customer is solely responsible for payment of all fees and charges associated with the interconnection of the Renewable Electricity Generation Facility.

B. The Renewable Electricity Generation Facility shall meet all applicable federal, state and local safety and performance standards, including those established by the National Electrical Code, the Institute of Electrical and Electronic Eng ineers, and accredited testing laboratories such as Underwriters Laboratories and, as applicable, the rules of the California Public Utilities Commission regarding safety and reliability. The customer shall operate the renewable facility in compliance with all applicable SFPUC or PG&E tariffs, rules, regulations, and orders, and any rules, regulations and orders of the California Public Utilities Commission. The customer is solely responsible for payment of all fees, rates and charges associated with the op eration of the Renewable Electricity Generation Facility.

Schedule NEM-ShaRE: Shared Renewable Energy Arrangement Applicability
A. This Schedule ShaRE is applicable to service for multi -tenant or multi- meter properties located at the same or contiguous proper ties on which a renewable energy facility owned or installed by an eligible SFPUC customer is located and where the SFPUC operates the local distribution system and is able to use exported energy to serve other SFPUC customers. This Schedule may be extende d to customers in other locations on a case -by- case basis where the configuration of distribution facilities permit. Contiguous properties must be owned, rented or leased by the same customer that owns, rents, or leases the property on which the renewable energy facility is located (“Contiguous Properties”).

B. This Schedule is available upon request, on a first -come, first -served basis for eligible customers until the total rated generating capacity used by eligible customers under this Schedule equals 5 megawatts of installed capacity. At that time, this schedule will be closed to new customers.

C. The renewable facility must:

1. be a renewable energy resource as defined in California Public Resources Code Section 25741(a)(1);

2. be sized such that the amount of energy generated does not exceed the total energy requirements of all the benefitting accounts and generating account, but with a maximum design capacity of 1 MW (AC);

3. be located on the customer’s owned, rented, or leased premises; and

4. be interconnected for parallel operation with the local distribution system.

D. Customers on this Schedule are not eligible to take service on Electric Schedule NEM - SFPUC, Net Energy Metering.

E. The eligible customer must submit a ShaRE Application. Upon acceptance by SFPUC, the customer must execute a ShaRE Acknowledgement or any other document containing substantially the terms and conditions of the Acknowledgement as determined by SFPUC in order to receive services under this Schedule. All necessary forms and documents are available for download from the SFPUC website.

Customer Accounts and Metering
A. The customer must designate specific SFPUC -served accounts that are either located on the same property where the renewable facility is located or on Contiguous Properties.

These designated accounts will form a “Shared Renewable Energy (ShaRE) arrangement”, made up of both of the following:

1. Designated “benefitting accounts” that will receive billing credits for energy generated by the renewable facility.

2. A single account to which the renewable facility will be primarily associated for the purposes of billing renewable facility- related fees. This account shall be referred to as either a “generating account” or a “primary account” depending on the customer’s chosen renewable facility co nfiguration. Generating accounts and primary accounts will be differently treated according to the following rules:
i. If the renewable facility is located behind a meter billed to the customer, the associated account will be designated as a “generating accou nt”. Any billing credits generated by the renewable facility will firstly be applied to the generating account’s load until the generating account’s load is zeroed out, before being allocated to benefitting accounts.
ii. If the renewable facility is located in front of existing customer meters, the customer must designate one of its own existing accounts to serve as a “primary account”. The primary account will not receive any billing credits unless the customer chooses to also designate the primary account as a benefitting account in the ShaRE arrangement.

B. Metering for the renewable facility.

1. To enable accurate billing of benefitting accounts, the renewable facility’s meter must be capable of (i) measuring the flow of ele ctricity in both directions in a manner commensurate with the smallest time interval required by the SFPUC to establish billing determinants for any of the benefitting account meters and (ii) being read remotely by SFPUC. If necessary, the SFPUC will insta ll a meter to accurately measure and record the total amount of electricity exported by the renewable facility. The customer shall install the appropriate meter socket and shall reimburse the SFPUC for the actual cost of all necessary labor, equipment, materials, and related facilities costs incurred by the SFPUC to install the necessary metering.

2. If the existing distribution utility meter is not an interval meter capable of measuring the flow of electricity in both directions and being read remotely by SFPUC, the SFPUC will install a new meter or cause one to be installed, consistent with the SFPUC’s specifications, and the customer shall be responsible for any costs incurred. If needed, the customer shall install the appropriate meter socket.

3. Meters shall meet the requirements of this section and all applicable federal, state, and local safety and performance standards.

Billing and Settlement
A. Each account in the ShaRE arrangement will be billed monthly. All charges under the participating account’s otherwis e applicable rate schedule shall be in effect, and the

account will continue to be billed for all applicable charges —including, if applicable, demand and monthly charges —other than those reduced by the crediting method described below.

B. For each monthly billing period, the SFPUC shall allocate the electricity (kWh) exported by the renewable facility to each benefitting account by one of the following methods. In either method, if the renewable facility serves any customer load located behind the same customer account as the renewable facility ( i.e., the generating account), the energy credits that will be applied to the benefiting accounts will be net of the energy credits applied to zero out the generating account’s load.

1. The customer may specify a percentage of exported electricity to be assigned to each benefitting account (the sum of the assigned percentages shall equal 100% of monthly exported electricity). The customer must notify all benefitting accounts and submit the signed allocation form to the SFPUC.

2. If the allocation is not specified by the customer, the allocation will be performed by the SFPUC in proportion to the cumulative billed usage at each identified benefitting account for the previous twelve months prior to the initial application.

If tw elve months of historical billing data are not available for any benefiting accounts, the SFPUC will estimate usage for these purposes. The energy (kWh) exported from the renewable facility at each meter interval will then be allocated to each of the benef itting accounts for the corresponding interval for the applicable billing period.

C. The allocated energy (kWh) will be valued at the electricity use (kWh) charges of the benefitting account’s otherwise applicable rate schedule. The value of the allocated energy will not include demand or monthly customer charges. Each benefitting account will be billed for the net amount of energy consumption and demand and customer charges at the account’s otherwise applicable rate schedule. The net balance of all moneys owed must be paid on each monthly billing cycle.

D. If the monetary value of allocated energy in a month exceeds the electricity use (kWh) charges for the benefitting account in that month, the excess value shall be carried over as a monetary credit on the benefitting account. This amount will be credited against electricity use (kWh) charges on future bills for that account until the end of the twelve - month period.

E. The generating account and all benefitting accounts within a ShaRE arrangement will be placed on the same billing cycle. In the April bill each year, any unused accumulated monthly bill credits from the preceding 12-month period will be zeroed out.

1. For new customers, the April true -up will cover the period starting on the date that the customer commences service under this ShaRE Schedule up to the April true-up date. For new customers commencing service under this ShaRE Schedule less than 12 months prior to the April true -up date, any remaining monetary bill credits will be carried over to the next twelve -month period on a one time only basis.

2. If any account within the ShaRE arrangement terminates participation in this program, the SFPUC will reconcile that account’s consumption and production of electricity during any part of the twelve -month period following the last annual settlement. If there is a material and permanent change to the usage of the ShaRE accounts such that the renewable facility output exce eds the combined load of the accounts, SFPUC may reassess the customer’s eligibility for this Schedule.

F. The customer will retain ownership of all renewable energy credits associated with the renewable facility.

G. The SFPUC will assess fees to recover added costs of billing services for a ShaRE arrangement. The generating account will be charged a one -time setup charge of $12 for each benefitting account. Each benefitting account and the generating account will be charged a monthly billing service fee of $5. The customer may make changes to the allocation percentages by notifying each affected benefitting account and submitting a new signed allocation form to the SFPUC. If the customer wishes to make more than one changed allocation per twelve -month true -up period, the generating account will be charged $12 per account changed.

Safety, Standards and Inspections
A. The customer must satisfy all applicable SFPUC interconnection requirements and receive SFPUC approval to interconnect. The customer is solely responsi ble for payment of all fees, rates, and charges associated with the interconnection of the renewable facility.

B. The renewable facility shall meet all applicable federal, state and local safety and performance standards, including those established by the N ational Electrical Code, the Institute of Electrical and Electronic Engineers, and accredited testing laboratories such as Underwriters Laboratories and, as applicable, the rules of the California Public Utilities Commission regarding safety and reliability. The customer shall operate the renewable facility in compliance with all applicable SFPUC or PG&E tariffs, rules, regulations, and orders, and any rules, regulations and orders of the California Public Utilities Commission. The customer is solely respon sible for payment of all fees, rates, and charges associated with the operation of the renewable facility.

Section 9 – Seasonal and Time of Use Periods
Unless stated otherwise, for all rates which vary based on season and time period, the following definitions apply.

Summer (May—October)
Peak 12:00 noon to 6:00 pm Monday through Friday (except holidays) Part-Peak 8:30 am to 12:00 noon
6:00 pm to 9:30 pm Monday through Friday (except holidays)

Peak 12:00 noon to 6:00 pm Monday through Friday (except holidays) Off-Peak 9:30 pm to 8:30 am
All day
Monday through Friday (except holidays)
Saturday, Sunday and holidays.

Winter (November—April)
Part-Peak 8:30 am to 9:30 pm Monday through Friday (except holidays) Off-Peak 9:30 pm to 8:30 am
All day
Monday through Friday (except holidays)
Saturday, Sunday and holidays.

Holidays
Holidays for the purpose of these rate schedules are New Year’s Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veterans’ Day, Thanksgiving Day, and Christmas Day on the dates the holidays are legally observed.

Section 10 – Definitions
For the purpose of this resolution, the following definitions shall apply unless the context specifically dictates otherwise.
"City"
The City and County of San Francisco
"Commercial Customer"
A Commercial Customer is the customer of record at any property used primarily for business or professional purposes responsible for payment of charges for electric service. "Commission"
The San Francisco Public Utilities Commission (SFPUC)
"Customer"
Person in whose name Electric Service is provided as evidenced by the signature on the Application, contract, agreement for that service, or in the absence of a signed instrument, by the receipt and payment of Bills regularly issued in the Customer’s name, regardless of the identity of the actual user of the Electric Service. In certain cases, the word “customer” is used interchangeable with the number of “billed accounts/services”. "Customer Charge"
That portion of the bill for electric service which is a fixed charge (i.e., does not vary based on energy usage) to cover the costs for metering and billing.

"Customer Class"
Users with the same or similar usage characteristics are grouped into customer classes for purposes of cost allocation and rate setting. Customers in the same class may be able t o choose from different rate schedules available to their class, but generally cannot choose a rate schedule applicable to a different class. Customer classes are determined as described in Section 2 – Customer Classification.
“Demand”
The measurement (in kW) of the actual energy usage for a metered Electric Service at a given moment. For billing purposes, demand is averaged over the interval the meter measures, which is typically each 15 minutes.
“Demand Charge”
A charge for the peak demand of electricity (measured in kW and assessed as described in “Demand”) used during a billing period or time-of use period. "Energy Charge''
That portion of the bill f or electric service based on the electric energy consumed, measured in kWh.
"General Manager"
The General Manager of the SFPUC or their designee.
"Holidays"
Holidays for the purposes of most Hetch Hetchy rate schedules are New Year's Day, President's Day, Memorial Day, Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, Christmas Day; the dates will be those on which the holidays are legally observed; see Section 9 – Seasonal and Time of Use Periods
"Kilowatt (kW)"
Unit of electric load or power or demand
“Kilowatt per Hour (kWh)”
Basic unit of electrical energy equal to one kilowatt of power supplied from an electric circuit for one hour.
"Maximum Monthly Demand”
The measure (in kW) for the highest demand during a monthly bill period based on 15- minute interval data. Maximum monthly demand is be used to assign a commercial customer to a class (see Section 2 – Customer Classification). In addition, maximum demand charges exist on many rate schedules, and are assessed in addition to any time-of-use demand charges.

"Meter"
A device for measurement of electric service provided including energy (kilowatt -hours) and demand (kilowatts)
"Operations and Maintenance Costs"
Expenditures used for the production, acquisition and delivery of electricity including, but not limited to, the costs of personnel, materials and supplies, purchased power, transmission and distribution wheeling, and administration.
"Power System"
The City's power system including all assets (real, personal, and tangible or intangible) controlled by and under the jurisdiction of the Commission used for the gathering, impounding, and transmission of water for hydro- generation, and the generation, transmission, and distribution of electricity, including all future additions, extensions, replacements and improvements to the system.
"Peak" (Time-of-Use)
“Peak” times refer to when a utility’s system demand is typically highest and costs are increased.

For rate schedules that have a peak rate, these times can be found in Section 9 – Seasonal and Time of Use Periods.
"Part-Peak" (Time-of-Use)
“Part-Peak” times refer to when a utility’s system demand is typically higher than off -peak, but lower than peak, and costs are changed to r eflect this middle tier usage using a Time -of-Use method. These times can be found in Section 9 – Seasonal and Time of Use Periods . Energy rates during part-peak periods for time-of-use rate schedules reflect this middle level of costs, as compared to peak and off -peak periods. If a rate schedule has a Part -Peak Demand Charge, it is assessed based on the highest demand during all part-peak periods in the bill cycle. "Off-Peak" (Time-of-Use)
“Off-Peak” times refer to when a utility’s system demand is typically lowest and costs are decreased using a Time- of-Use method. These times can be found in Section 9 – Seasonal and Time of Use Periods.
"Poly Phase Meter”
Poly Phase meters measure multiple -phase A/C services; of which three- phase power is common. Three-phase power refers to an electrical system that has three different voltage curves, which start from zero at different times. Poly phase meters are typically installed when there are higher switchboard sizes over 600 amps. For existing accounts, you can contact Customer Service to find out what type of electrical system you have installed. "Primary Voltage"
Voltage class if the customer is served from a single customer substation or without transformation at a standard primary voltage.

"Single Phase Meter”
Single Phase meters measure single phase A/C s ervice, or an electrical system that has only one voltage or current curve. For existing accounts, you can contact Customer Service to find out what type of electrical system you have installed.
"Residential Customer"
The customer of record, for any single or multiple family dwelling unit, responsible for payment of the charges for electrical service.
"Secondary Voltage"
Voltage class if the service voltage is less than 2,400 volts or if the definitions of "primary" and "transmission" do not apply to the service.
"Summer Season"
The period from May 1 to October 31; see Section 9 – Seasonal and Time of Use Periods. "Transmission Voltage"
Voltage class if the customer is served without transformation at a standard transmission voltage. "Winter Season"
The period from November 1 to April 30; see Section 9 – Seasonal and Time of Use Periods.

Section 11 – Outside Agencies
The Hetch Hetchy Power rate and charge schedules set forth in this resolution will not apply to any special agreements executed by the City and a Customer; provided that such agreements may be negotiated only when justified by special circumstances not generally applicable to other Customers, that such agreements shall provide schedules of electric rates and charges and other terms and conditions that may be required as the result of any outstanding bonded indebtedness or loan agreements and the requirement s of local, state and federal laws and regulations, that are consistent with the customer classification cost allocations set forth in this resolution, and that such agreements shall be approved by the Commission.

Section 12 – Severability
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this resolution or any part hereof, is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validit y or effectiveness of the remaining portions of this resolution or any part hereof. The Commission hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional or invalid or ineffective.

Section 13 – Effective Date
The rates adopted pursuant to this resolution shall be effective no sooner t han thirty days following approval of this resolution, unless the rates are rejected by the San Francisco Board of Supervisors pursuant to Section 8B.125 of the City's Charter, and shall remain in effect until repealed, modified or superseded. These rates will be applied to meter readings on or after July 1, 2024.

I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of May 14, 2024

Secretary, Public Utilities Commission

San Francisco Public Utilities Commission
FY 2024-25 Hetch Hetchy Power Revenue Requirement
FY 2025
Expenses
Hetch Hetchy Water (Upcountry) Operating Expenses
Labor / Personnel 38,435,135$
Materials & Supplies 2,968,358$
Non-Personnel Services 32,053,994$
Services of Other Departments 3,059,692$
Services of Bureaus 15,478,720$
Capital Outlay 1,533,411$
Hetch Hetchy Power (Downcountry) Operating Expenses
Salaries 20,571,342$
Materials & Supplies 1,131,556$
Non-Personnel Services
Power Transmission and Distribution 56,050,727$
Power Purchase 58,088,433$
Gas Purchase 20,831,164$
Steam Purchase 2,842,464$
Other non-personnel 15,717,335$
Services of Other Departments 5,856,520$
Services of Bureaus 12,363,400$
Capital Outlay 120,000$
Transfers Out 647,681$
Programmatic and Capital Expenses
Programmatic Expenses 24,770,478$
Revenue Funded Capital - Water 3,451,858$
Revenue Funded Capital - Power 18,585,463$
Debt Service 10,483,720$
Total Expenses 345,041,452$
Change in Fund Balance (25,971,203)$
Total Revenue Requirement 319,070,248$
Non Retail Rate Revenues
Wholesale Revenues 18,912,713$
Non-Rate Revenues 45,888,313$
Hetch Hetchy Water Assessment 49,192,673$
Treasure Island Revenues 5,200,000$
Federal Bond Interst Subsidies 102,564$
Hetch Hetchy Power Rate Revenue Requirement 199,773,986$

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.

MEMORANDUM

DATE: 3 May 2024

TO: San Francisco Public Utilities Commission

FROM: Rate Fairness Board

SUBJECT: Proposed retail electricity rates for Hetch Hetchy Power and CleanPowerSF for FY 2025:

Commissioners:

In accordance with Article 8B of the Charter of the City and County of San Francisco, the Rate Fairness Board (RFB) offers the following comments and recommendations regarding the SFPUC Staff’s proposed retail electricity rates for Hetch Hetchy Power and CleanPowerSF for the period July 1, 2024, to June 30, 2025:

1. We note that the rates for the SFPUC’s retail electricity service saw major changes for FY 2022-23, as a result of the first independent cost- of-service study for the Power Enterprise. These changes included:
a. Separate rate-setting for Hetch Hetchy Power and
CleanPowerSF; and
b. Trending all rates toward Cost of Service, subject to reasonable caps on annual increases.

2. As it did last year (for FY 2023-24), the Staff is proposing rates for only a 1-year period, given the ongoing volatility and uncertainty in California’s electricity market. This approach seems reasonable given the circumstances, and it has served the SFPUC and its customers well in the past 2 years. This one-year rate proposal again seems prudent and reasonable.

3. The Staff’s current proposed generation rates are based solely on SFPUC costs, and the rates are below the corresponding rates for comparable service from Pacific Gas & Electric (PG&E).

4. The Staff’s proposal continues their process of simplifying the systems’ electric rates, by consolidating and eliminating unneeded and redundant rate classes and schedules. This simplification benefits customers and the enterprise.

5. At first glance, the proposed 8.5% increase in CleanPowerSF rates may appear to excessive, but it is necessary cover the enterprise’s expected costs, and CleanPowerSF’s rates are projected to remain lower than or equal to the equivalent PG&E rates. We note that this increase is less than that originally contemplated by Staff; the reduced rate increase comes at the expense of a slower projected path toward achieving the enterprise’s operating fund balance target. This is just one more example of the trade-offs inherent in the rate-making process and accept the outcome.

6. The 12% overall rate increase for Hetch Hetchy Power is in line with the Staff’s goals, established 2 years ago, for a multi-year move toward rates based on cost of service as well as for rate simplification. We note that this increase is less than the 14% originally proposed; staff re-calculated rates according to projected customer usage patterns and proposed the lower increase.

We note that the se rate increases, while not insignificant, are necessary to cover the Enterprises’ costs and to meet financial policy goals. We would expect that taking these steps now will mean future rate changes may be smaller and even negative. In the meantime, we encourage the Staff and the Enterprises to continue the programs that help customers save on the electricity bills.

Overall, we find that the Staff’s current rate proposal is a reasoned and measured approach to well-established goals: adjusting rates to account for current and expected costs, while meeting the twin objectives of establishing rates based solely on cost of service and providing service at rates competitive with PG&E. Thus, the RFB recommends that the Commission approve the Staff’s electricity rate proposal.

We look forward to continued interaction with the Commission on future rate proceedings for water, wastewater and power.

Sincerely,

Howard Ash
Chair, Rate Fairness Board of the San Francisco Public Utilities Commission

On behalf of:

Eric Dew, Residential City Retail Customer
Trisha McMahon, Budget & Planning Manager, City Administrator’s Office Calvin Quock, Budget & Revenue Analyst, Controller’s Office Massood Samerie, Vice-Chair and City Retail Large Business Customer Vishal Trivedi, Financial Analyst, Controller’s Office of Public Finance

Services of the San Francisco Public Utilities Commission Proposed FYE 2024-25 CleanPowerSF
and Hetch Hetchy Power Rates
May 14, 2024
Erin Corvinova, Financial Planning Director
1 Agenda
Power Rates Landscape
Rates Communications
CleanPowerSF Rates
• Rate Setting Overview
• Proposed CleanPowerSF Generation Rates
• Bill Impacts
Hetch Hetchy Power Rates
• Rate Structure Overview
• Discussion about Proposed Rate Schedule Modifications • Rate Setting Overview
• Proposed Enterprise and Retail Rates
• Bill Comparisons
2 Power Rates Landscape
• 2022 Power Rates Study
• CleanPowerSF’s first and Hetch Hetchy Power’s second Charter- required rate study
• Adopted 1-2 years of rates to respond to expense volatility and uncertainty
• Key accomplishment: Set own rates based on cost of service, no longer tied to/following PG&E
• New rates needed for both CleanPowerSF and Hetch Hetchy Power for FY 2024-25
• Next rate study will be completed Spring 2026 to set rates for FY 2026-27
3 Rates Communications (Mar-May)
4 Clean
PowerSF
Hetch
Hetchy
Power
Communications Tactic Release
Date
Notes
✔ ✔ Create dedicated Power rates
landing page on SFPUC.org
March 12 All communications direct customers to one webpage:
www.sfpuc.org/powerrates
✔ ✔ On-bill message April & May On-bill notice of public rate process and link to webpage ✔ Bill insert April Multilingual rate notice in April & May bills ✔ ✔ Customer e-newsletters April 4 Provide notice of July 1, 2024 rate change and public process; link to webpage
✔ ✔ Direct mail postcard mid-April Multilingual notice of July 1, 2024 rate change and public process; link to webpage
✔ ✔ Webinar on residential rates April 29 &
May 1
Presentation on residential rates, rate process, and key dates. Recorded and available on webpage.
✔ Key account outreach April-May Specific notice to customer accounts experiencing rate class changes (Hetch Hetchy Power only)
Services of the San Francisco Public Utilities Commission 5 CleanPowerSF
FYE 2024-25 Rates
CleanPowerSF Rates Landscape
• 2022 Power Rates Study adopted FY 2022-23 rates
• FY 2023-24 rates set using models from rates study and updated expense and customer data
• Key goals of FY 2024-25 rates update
• Maintaining rates competitive with PG&E
• Maintaining rates that are equitable for customers (following cost of service)
• Continuing to build fund balance reserves
6 CleanPowerSF Rates Structure
• CPSF rate classes exactly match to PG&E
• ex. 7 different residential rates
• CleanPowerSF only collects the generation
portion of the bill
• CPSF customers also pay “Power Choice
Indifference Adjustment” and “Franchise
Fee Surcharges” to PG&E
• CPSF sets rates comparing to the (PG&E
generation rate) – (PCIA + FFS)
• Changes to PG&E delivery charges
impact customers but have no effect on
CleanPowerSF’s competitiveness
• CleanPowerSF current rates are below PG&E
for all customers
7 $63
$3
$35
$63
$2
$42
$101 $107
$0
$20
$40
$60
$80
$100
$120
CleanPowerSF
April 2024
PG&E
April 2024
Average Monthly Bill
CleanPowerSF vs. PG&E Average
Residential Bills (E-TOU-C)
PG&E Delivery PG&E Delivery
PCIA PG&E Generation
CleanPowerSF FY 2024-25 Rates Setting
Proposal: 8.5% overall rate increase with updated cost-of- service allocations to customer classes
• Due to cost-of-service update, each rate may increase by more or less Process
8 Revenue
Requirement
• Commission adopted 10-
Year Financial Plan with
approved operating and
capital budges
Cost
Functionalization and
Allocation
• Leverage 2022 SFPUC
Power Rates Study model
• Update FY 2024-25
expenses from Financial
Plan
• Update with Calendar Year
2023 customer usage data
Rate Design
• Keep rate structures
consistent to current rates
• Compare to PG&E current
PG&E rates for each tariff
schedule
• Analyze rate schedules for
rebalancing
CleanPowerSF Expense Forecast
9 • Increased sales FYE 2024-25 due to new commercial customer signups • Moderate growth from electrification, population growth projected • Large increase in supply costs in recent years expected to level off but not drop Total ExpensesPower Sales Volumes
$361
$520
$-
$100
$200
$300
$400
$500
$600
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Millions
Power Supply Operations Revenue-Funded Projects
CleanPowerSF Cash Flow
($M) FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Beginning Fund Balance $ 90.1 $ 125.3 $ 150.5 $ 195.1 $ 235.7 $ 276.1 Sources
Retail Power Sales 383.2 434.8 468.7 473.9 479.4 483.2
Wholesale Sales 11.6 11.1 0.0 0.0 0.7 1.1
Other Miscellaneous Income 1.5 4.2 4.1 4.2 4.3 4.5
Total Sources $ 396.3 $ 450.1 $ 472.8 $ 478.1 $ 484.5 $ 488.8 Uses
Power Supply 328.9 385.0 386.2 394.2 399.4 403.8
Operations 30.6 39.4 41.5 42.8 44.2 45.6
Revenue-Funded Projects 1.6 0.6 0.5 0.4 0.5 0.7
Total Uses $ 361.1 $ 425.0 $ 428.3 $ 437.5 $ 444.1 $ 450.1 Net Revenues $ 35.2 $ 25.2 $ 44.5 $ 40.6 $ 40.4 $ 38.8 Ending Fund Balance $ 125.3 $ 150.5 $ 195.1 $ 235.7 $ 276.1 $ 314.9 Generation Rate Change 8.5% 6.5% 0.0% 0.0% 0.0%
Days Cash On Hand 129 140 181 218 251 283
10 • Updated slightly from 10
Year Plan with latest data
• Power supply makes up
~90% of total expenses
• Near term rate adjustments
needed to meet 180 days
cash on hand policy
objective
• Future years show 0%
adjustment until we have
more certainty on future
power costs.
10% 8% 8% 7% -5% 11%
$0.1519
$0.1349 $0.1304 $0.1276
$0.1023
$0.1394
$0.00
$0.02
$0.04
$0.06
$0.08
$0.10
$0.12
$0.14
$0.16
Residential Small General Service Medium General
Service - Low Demand
Medium General
Service -High Demand
Large General Service
& Agriculture
Outdoor Lighting
Aggregate Unit Cost ($/kWh)
Unit Costs per Customer Class
Power Supply Customer
CleanPowerSF Cost of Service Update
11 • 8.5% overall increase in rates = different increases for each customer class • Change in unit cost is a function of changes in cost allocated to customers and change in total usage
• The relative difference in COS allocations will be reflected in resulting rates CleanPowerSF Average Monthly Bill Comparison
Residential (E-TOU-C)
12 $63 $66
$3 $3
$35
$39
$63 $66
$2 $2
$42 $39
$101
$108$107 $108
$0
$20
$40
$60
$80
$100
$120
CleanPowerSF
April 2024
PG&E
April 2024
CleanPowerSF
Proposed
FYE 2025
PG&E
Projected
July 2024
Average Monthly Bill
PG&E Delivery PG&E Fees (PCIA/FFS) CleanPowerSF Generation PG&E Generation CleanPowerSF Average Monthly Bill Comparison
Small General Service (B-1)
13 $376 $389
$13 $13
$158 $174
$376 $389
$10 $10
$208 $194
$548 $577$594 $594
$0
$100
$200
$300
$400
$500
$600
$700
CleanPowerSF
April 2024
PG&E
April 2024
CleanPowerSF
Proposed
FYE 2024
PG&E
Projected
July 2024
Average Monthly Bill
PG&E Delivery PG&E Fees (PCIA/FFS) CleanPowerSF Generation PG&E Generation CleanPowerSF Average Monthly Bill Comparison
Large General Service, Sec. Volt. (B-20S)
14 $95 $98
$6 $6
$67 $65
$95 $98
$4 $4
$90 $85
$168 $170
$190 $187
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
CleanPowerSF
April 2024
PG&E
April 2024
CleanPowerSF
Proposed
FYE 2024
PG&E
Projected
July 2024
Average Monthly Bill
Thousands
PG&E Delivery PG&E Fees (PCIA/FFS) CleanPowerSF Generation PG&E Generation Services of the San Francisco Public Utilities Commission Hetch Hetchy Power
FYE 2024-25 Rates
15 Hetch Hetchy Power Rates Landscape
• 2022 Power Rates Study adopted FY 2022-23 and
FY 2023-24 rates (two years)
• Key goals of FY 2024-25 rates update
• Set rates to achieve all financial policy goals
• Debt Service Coverage is main driver of rate increase • Continue rate consolidation and transition to cost of service 16 Hetch Hetchy Power Rates Structure
17 General Use
(GUSE) Rates
• General Fund
departments,
education
districts,
governmental
agencies
• Less than cost of
service
(subsidized)
• Increasing
annually by 3
cent/kWh
Tuolumne County
Rates
• Three customers
in Tuolumne
County
• Set many years
ago by contract,
currently less
than cost of
service
• Increasing
annually
beginning FY
2023-24
Hetch Hetchy
Retail Rates
• Private
customers,
mostly in
redevelopment
areas, affordable
housing
• Default rate for
new customers
• Set at cost of
service + share
of subsidy
• As of FY 2023-
24, same as
retail rates
Enterprise Rates
• Airport,
Enterprise
departments,
Port tenants
• Set at cost of
service + share
of subsidy
• As of FY 2023-
24, same as
retail rates
Hetch Hetchy Power FY 2024-25 Rates Setting
Proposal:
• 12% flat rate increase for retail rates
• $0.03/kWh effective rate increase for General Use and Tuolumne County Rates
Process
18 Revenue
Requirement
• Commission adopted
10-Year Financial Plan
with approved
operating and capital
budges
Cost
Functionalization
and Allocation
• Leverage 2022 SFPUC
Power Rates Study
model and allocations
• Did not update cost of
service per customer
class
Rate Design
• Continue rate
consolidation,
eliminating rate codes
when possible
• Make changes to rate
structure for some key
rates
Hetch Hetchy Power Expense Forecast
19 $250
$577
$-
$100
$200
$300
$400
$500
$600
$700
FYE
2024
FYE
2025
FYE
2026
FYE
2027
FYE
2028
FYE
2029
FYE
2030
FYE
2031
FYE
2032
FYE
2033
FYE
2034
Millions
Power Supply and Delivery Other Operations & Maintenance Debt Service Revenue-Funded Capital
Power supply costs are the main driver of expenditure growth 985
978
1,036
837 916
928
1,039
1,382
-
200
400
600
800
1,000
1,200
1,400
1,600Power Sales (GWh)
Actual Retail Sales Projected Retail Sales
Hetch Hetchy Power Cash Flow
($M) FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Beginning Fund Balance $ 189.3 $ 183.5 $ 157.6 $ 143.5 $ 138.0 $ 146.5 Sources
Power Sales - Retail 169.1 205.0 242.7 293.1 344.1 378.2 Power Sales - Wholesale 38.2 18.9 20.1 17.5 15.1 16.4
Gas & Steam Sales 24.7 23.7 28.3 31.4 34.5 35.9
Water Sales 2.6 2.8 3.1 3.3 3.5 3.7
Hetchy Transfer 46.3 49.2 52.1 53.6 55.6 57.3
Other Misc Income 14.9 19.5 22.6 18.8 16.2 14.7
Total Sources $ 295.8 $ 319.1 $ 369.0 $ 417.7 $ 469.0 $ 506.1 Uses
Power Supply & Delivery Charges 129.9 138.3 148.7 171.5 181.0 196.7 Other Operations & Maintenance 162.3 174.2 182.9 187.6 193.5 201.7 Debt Service 3.5 10.5 13.6 17.7 25.9 38.1
Revenue-Funded Projects 5.9 22.0 37.9 46.4 60.0 46.2
Total Uses $ 301.5 $ 345.0 $ 383.1 $ 423.2 $ 460.5 $ 482.7 Net Revenues $ (5.7) $ (26.0) $ (14.1) $ (5.5) $ 8.5 $ 23.4 Ending Fund Balance $ 183.5 $ 157.6 $ 143.5 $ 138.0 $ 146.5 $ 169.9 Retail Rate Increase 12.0% 10.0% 9.0% 9.0% 5.0%
Debt Service Coverage Target 1.10 1.10 1.10 1.10 1.10 1.10 Debt Service Coverage (Current) 1.00 0.31 2.22 3.10 3.42 2.73 Debt Service Coverage (Current w/
Fund Balance as Revenue) 2.73 2.81 3.27 3.42 3.42 2.73
20 • Near term rate adjustments
needed to meet Debt
Service Coverage
Requirements
• Future year rate
adjustments are driven by
growing power supply and
delivery charges
Hetch Hetchy Power Rate Design
Enterprise and Retail Rate Consolidation
Consolidate Identical Rates
Standardize Low-Income Discounts
• Provide standard 30% discount to all qualifying customers, no matter their rate code
Eliminate Outdated Master Meter Residential
• Move to small and large commercial rates instead
Enterprise Time-of-Use Rates: No New Enrollment
• Legacy rates allow existing customers to stay on but don’t expand enrollment in outdated rate structure
21 Hetch Hetchy Power Rate Design
Shoreside Power & Tuolumne County Rates
Shoreside Power
• Rate charged to cruise ships that
dock at SF Port facilities
• Port is customer but passes on bills
to cruise ships
• Goals of rate structure update:
• Maintain demand charges to reflect
cost of service, industry norms
• Make administration easier for Port by
simplifying forecasting of annual
effective rates passed through to ships
Tuolumne County Rates
• Rates charged to US Forest Service,
CA Dept. of Fish and
Wildlife, SFPUC employees in
housing at Moccasin
• Significantly below cost of service,
had not increased for decades
• Still a flat $/kWh structure – plan to
address in next rates study
• Increase 50% or by $0.03/kWh,
whichever is less
22 Hetch Hetchy Average Monthly Bill Comparison
Residential (R-1E, R-2E, E-TOU-C)
23 $60
$67
$85
$95
$131 $133
$-
$20
$40
$60
$80
$100
$120
$140
FYE 2024 FYE 2025
Average Monthly Bill
Hetch Hetchy Retail Low-Income Discounted Rates Hetch Hetchy Retail Rates PG&E Rates Hetch Hetchy Average Monthly Bill Comparison
Small Commercial (C-1, CG-1, B-1)
24 $284
$337
$487
$545
$775 $788
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
FYE 2024 FYE 2025
Average Monthly Bill
Hetch Hetchy General Use Rates Hetch Hetchy Retail Rates PG&E Rates Hetch Hetchy Average Monthly Bill Comparison
Industrial, Primary Voltage (I-1P, IG-1P)
25 $174,248
$208,344$211,432
$236,810
$-
$50,000
$100,000
$150,000
$200,000
$250,000
FYE 2024 FYE 2025
Average Monthly Bill
Hetch Hetchy General Use Rates Hetch Hetchy Retail Rates Services of the San Francisco Public Utilities Commission Thank you!
Questions and Discussion

CleanPowerSF Sfpuc CommissionMay 14, 2024

CleanPowerSF Sfpuc Commission
May 14, 2024