London N. Breed
Mayor
Kate H. Stacy
President
Joshua Arce
Vice President
Avnl Jamdar
Commissioner
Steve Leveronl
Commissioner
Dennis J. Herrera
General Manager
Hetch Hetchy
Regional Water System Services of the San Francisco Public Utilities Commission 525 Golden Gate Avenue, 13th Floor
San Francisco, CA 94102
T 415.554.3155
F 415.554.3161
TTY 415.554.3488
March 17, 2025
TO: Commissioner Kate Stacy, President
Commissioner Joshua Arce, Vice President
Commissioner Avni Jamdar
Commissioner Steve Leveroni
THROUGH: Dennis J. Herrera, General Manager
FROM: Steven R. Ritchie, Assistant General Manager, Water RE: 2009 Water Supply Agreement Update
This memo provides our quarterly update on the SFPUC's activities required by the 2009 Water Supply Agreement (WSA).
Per the WSA, SFPUC provides the following to BAWSCA on an ongoing basis:
• Weekly water delivery data for San Francisco, South/East Bay, and the Peninsula;
• Monthly Hydrologic Conditions Report;
• Monthly water sales data, including "Suburban Resale" and City Retail water use data;
• Water Quality "blend change" notices and other notifications as needed, in accordance with the Water Quality Notification and Communications Plan; • Monthly BAWSCA Bond Surcharge Collection Report per Prepayment and Collection Agreement between BAWSCA and SFPUC;
• Monthly updates on regional Alternative Water Supply planning projects that BAWSCA is directly participating in; and
Since the last update on December 2, 2024, the SFPUC has also completed the following actions:
1. Met with BAWSCA, San Jose and Santa Clara to collaborate on planning efforts regarding future needs in consideration for their request for permanent status.
2. Continued discussions of minimum purchase quantity amendments with BAWSCA and minimum purchase wholesale customers (WSA Section 3.07.0 Attachment H, Section 6.1.1).
3. Delivered the Final 2024 State of the Regional Water System Report (WSA Section 6.09.1) on December 6, 2024.
Services of the San Francisco Public Utilities Commission OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
4. Continued review of and response to questions submitted as part of the FY 2020-21, FY 2021-22, and FY 2022-23 Wholesale Revenue Requirement Compliance Audits Wholesale Customer Reviews (WSA Section 7.06).
5. Executed a Tolling Agreement for FY 2021-22 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review. (WSA Section
7.06).
6. Executed a Second Tolling Agreement for FY 2020-21 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review. (WSA Section
7.06).
7. Completed the FY 2020-21 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review and executed an Agreement Memorializing Changes to the Wholesale Revenue Requirement for Fiscal Year 2020-21 (WSA Section 7.06).
8. Initiated FY 2023-24 Wholesale Revenue Requirement Compliance Audit (WSA Section 7.06).
9. On January 9, 2025, provided BAWSCA the FY 2026-35 Water Enterprise and Hetch Hetchy 10-Year Capital Plans for review and comment (WSA 6.09.E).
10. On January 21, 2025, provided the FY 2024-25 Wholesale Water Rate Range to BAWSCA (not required, but related to WSA Section 6.03).
11. On January 22, 2025 met with BAWSCA to review the FY 2026-35 Water Enterprise and Hetch Hetchy 10-Year Capital Plans (WSA 6.09.E).
12. Provided a dry-year water supply update on February 1st in the form of a letter to the State legislature and Department of Public Health per AB1823 requirements with a copy to BAWSCA, (not a WSA requirement, but included here for informational purposes).
13. Provided water supply conditions reports to the Wholesale Customers on February 1st and March 3rd with initial estimates of available water supply in the coming year (WSA Attachment H, Section 6.1.1).
14. Helped conduct the quarterly meeting of the Water Quality Committee on February 19, 2025 (WSA Section 3.08.C).
15. Held Annual Wholesale Customer Meeting on February 20, 2025 (WSA Section
8.03) and presented on expected water supply conditions, capital improvement and maintenance efforts, capital planning and deliverability, rates and financial plans.
16. On March 14, 2025, met with BAWSCA to coordinate 2025 Urban Water Management Plan common language development and schedule.
In the near-term, the SFPUC is working to complete the following actions:
1. Continue review and response to questions submitted as part of the FY 2021- 22 and FY 2022-23 Wholesale Revenue Requirement Compliance Audits Wholesale Customer Reviews (WSA Section 7.06).
2. Complete discussions on potential amendments to minimum purchase requirements in WSA.
3. Approve FY 2025-26 wholesale water rates at April 22, 2025 Commission meeting.
4. Provide forecasts to wholesale customers subject to minimum purchase requirements of expected FY 2024-25 water sales and compliance with minimum purchase requirements.
5. Provide final water supply conditions report to the Wholesale Customers in April 2025, of available water supply in the coming year (WSA Attachment H, Section 6.1.1).
6. Help conduct the quarterly meeting of the Water Quality Committee (WSA Section 3.08.C).
7. Continue financial reconciliation work required by 2018 WSA Amendments to asset classification for specific Hetch Hetchy projects.
Please contact me if you have any questions.
cc: Tom Smegal, BAWSCA CEO/General Manager