rates of the San Francisco Public Utilities — CleanPowerSF Sfpuc Commission, April 8, 2025

Services of the San Francisco Public Utilities Commission Proposal to Adopt Hetch Hetchy Power
Rates for FY 2025-26, adopt Facility Rental
Fees for Camp Mather Cabin #2 for FY
2024-25 and FY 2025-26, and review of the
updated FY 2025-26 rate plan for
CleanPowerSF
April 8, 2025
1 Agenda
• Power Rates Background
• Rates Communication Plan
• Hetch Hetchy Power Rate Plan
• CleanPowerSF Rate Plan
• Camp Mather Cabin #2 Rental
2 Power Rates Landscape
• 2022 Power Rates Study
• CleanPowerSF’s first and Hetch Hetchy Power’s second Charter- required rate study
• Key accomplishment: Set own rates based on cost of service, no longer tied to/following PG&E
• Rates between FYE 2022 and FYE 2026 relied on the
cost allocations and tools developed in the 2022 Study. • Next rate study will be completed Spring 2026 to set rates for FYE 2027 through FYE 2031
3 Power Rate Update Process
4 Revenue
Requirement
• Commission adopted
10-Year Financial Plan
• Rate adjustments to
fund approved budget
and meet financial
performance targets
Billing Data
Analysis
• Leverage 2022 SFPUC
Power Rates Study
model and allocations
• Validate revenue
generation
Rate Structure
Evaluation
• Consider changes to
rate structure are
needed
• Review of
Competitiveness with
PG&E
If needed, the scheduled rate plan may be updated if:
• Billing data analysis indicates rate change is needed • Proposed rates result in competitive risk .

Rates Communications Plan (Jan-July)
Clean
PowerSF
Hetch
Hetchy
Power
Communications Tactic Release
Date
Notes
Updated Power rates landing
page on SFPUC.gov
January 21 All communications direct customers to one webpage:
www.sfpuc.org/powerrates
On-bill message March-July On-bill notice of rate process, July 1 rate change, and link to webpage
Bill insert March Multilingual rate notice in March bill Customer e-newsletters January,
April, July
Provide notice of July 1, 2024 rate change and
public process; link to webpage
Direct mail postcard March Multilingual notice of July 1, 2024 rate change and public process; link to webpage
Webinar on residential rates April 1 & 2 Presentation on residential rates, rate process, and key dates. Recorded and available on website.

Key account outreach March-May Specific notice to customer accounts experiencing rate class changes (Hetch Hetchy Power only)
Services of the San Francisco Public Utilities Commission Hetch Hetchy Power
FYE 2025-26 Rates
6 Hetch Hetchy Power Rates Structure
7 Hetch Hetchy
Retail Rates
• Private
customers, mostly
in redevelopment
areas, affordable
housing
• Airport, City
Departments, Port
• Default rate for
new customers
• Set at cost of
service + share of
subsidy
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 by 3
cent/kWh
Stanislaus County
Rate
• New proposed
rate for one
Transmission-
level voltage
industrial
customer
• Rate previously
set via contract
Hetch Hetchy Power: Rate Plan
Key Findings
• Revenue requirement driven:
• Power Purchase,
• Debt Service,
• Meeting financial performance metrics
• Billing data analysis validated
revenue generation in line with
financial plan
• Bill comparison indicated HHP is
cost competitive with PG&E
$0
$50
$100
$150
$200
$250
$300
$350
FYE
2024
FYE
2025
FYE
2026
FYE
2027
FYE
2028
FYE
2029
FYE
2030
FYE
2031
FYE
2032
FYE
2033
FYE
2034
FYE
2035
Millions
Ending Fund Balance (historic) Ending Fund Balance (projected) Minimum Fund Balance Commission Notice Fund Balance
8 Rate ∆ 10.0% 9.5% 9.5% 8.0% 5.0% 5.0% 4.5% 4.0% 4.0% 5.0% DSC 1.90 3.00 2.36 2.01 2.48 2.37 2.05 2.22 2.06 2.20
Hetch Hetchy Power Rate Proposal
9 • Continuation of the approved plan to increase rates until achieving COS • Rate increases are 11.2% - 16.5% for General Fund Customers • Rate increase are 28.6% - 38.1% for Tuolumne County Customers Maintain $0.03/kWh Rate Increase for GUSE and Tuolumne
Customers
• Uniform rate increase to all rate tariffs
• Bill impacts should be ~10% for the majority of customers assuming • Assumes consistent usage and demand year over year
• Bill impacts will be different for customers with different for customers that move customer class
Advance the 10.0% Retail Rate Increase
• New rate to initiate the transition of a customer on contract rates to retail rates Creation of New Stanislaus County Industrial Transmission Rate Hetch Hetchy Average Monthly Bill Comparison
Residential (R-1E, R-2E, E-TOU-C)
10Estimates are based on typical Hetch Hetchy Residential customer usage

11 Hetch Hetchy Average Monthly Bill Comparison
Small Commercial (C-1, CG-1, B-1)
Hetch Hetchy Power Rates provide the City and Retail Customers great value compared to PG&E

Services of the San Francisco Public Utilities Commission 12 CleanPowerSF
FY 2025-26 Rates
CleanPowerSF: Cash Flow
13 Rate ∆ 8.5% 0.0% 0.0% 0.0% 0.0% 1.5% 1.5% 1.0% 1.0% 1.0% 1.0% DCOH 149 204 242 290 313 316 287 257 244 218 200
Key Points
• Rate increases have been sized
to reach Fund Balance Target
• Ten year plan called for 3%
increase in FYE 2026
• Updated expense projections
indicate no
additional rate
increase needed in FYE 2026 to
reach the target fund balance.
• Billing data analysis confirms
revenue generation matches
financial plan
• Bill comparisons indicate
narrowing competitiveness with
PG&E in the near term.

CleanPowerSF Rates Structure
• CPSF rate classes exactly match to PG&E
• 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
14 $66 $66
$2
$40$41
$6
$109 $106
$0
$20
$40
$60
$80
$100
$120
CleanPowerSF Green PG&E
Rates as of March 1, 2025
CleanPowerSF vs PG&E Average Monthly
Residential Bills (E-TOU-C)
PG&E Delivery PG&E Fees (PCIA/FFS)
PG&E Generation CleanPowerSF Generation
PG&E Generation without PCIA
Bill Comparison: Residential
15 Key Points
• Current CPSF Green Rate
bills are $3/mo higher than
PG&E
• CPSF generation rates are
actually lower than PG&E
• PG&E has negative PCIA,
lowering customer bills
• PG&E rates will change
through the fiscal year
• PCIA will update January 1,
2026
$66 $66 $66
$2 $2
$40$41 $44
$6
$109 $112 $106
$0
$20
$40
$60
$80
$100
$120
CleanPowerSF Green CleanPowerSF Super Green PG&E
Rates as of March 1, 2025
CleanPowerSF vs PG&E Average Monthly Residential Bills (E-TOU-C) PG&E Delivery PG&E Fees (PCIA/FFS)
PG&E Generation CleanPowerSF Generation
PG&E Generation without PCIA
Bill Comparison: Commercial
16 CPSF bills are lower for most commercial customers even with PG&E’s negative PCIA $353 $353 $353
$9 $9
$182 $164 $170
$27 $526 $532 $535
$0
$100
$200
$300
$400
$500
$600
CleanPowerSF Green CleanPowerSF Super Green PG&E
Rates as of March 1, 2025
CleanPowerSF vs PG&E Average Small Commercial Monthly Bills (B-1) PG&E Delivery PG&E Fees (PCIA/FFS)
PG&E Generation CleanPowerSF Generation
PG&E Generation without PCIA
$2,670 $2,670 $2,670
$95 $95
$1,968 $1,633 $1,694
$284 $4,398 $4,459
$4,637
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
CleanPowerSF Green CleanPowerSF Super Green PG&E
Rates as of March 1, 2025
CleanPowerSF vs PG&E Average Medium Commercial - Secondary Monthly Bills (B-10S)
PG&E Delivery PG&E Fees (PCIA/FFS)
PG&E Generation CleanPowerSF Generation
PG&E Generation without PCIA
CleanPowerSF Rate Proposal
17 • Proposal is to preserve rates at their
current level for FYE 2026
No Action Needed from the
Commission
Services of the San Francisco Public Utilities Commission 18 Camp Mather Cabin #2
SFPUC Mather Cabin #2 Rental Fees
• Camp Mather Cabin #2 is owned and maintained by
SFPUC
• 3-bedroom, 7-person cabin
• Only current SFPUC employees eligible to rent, maximum of 3 nights each annual rental season of May 31 – October 31 • Fee has been $50 per night for several years
• The proposed rate is:
• $270 for FY 2024-25
• $275 for FY 2025-26
• The proposed rate is commensurate to a 6-person Cabin as listed in the annual Camp Mather rate sheet for San Francisco Residents 19 Services of the San Francisco Public Utilities Commission Thank You for your Consideration
20 AGENDA ITEM
Public Utilities Commission
City and County of San Francisco

DEPARTMENT Financial Services Division

AGENDA NO.

7 MEETING DATE

April 8, 2025

Public Hearing: Regular Calendar
Project Manager: Matthew Freiberg

Adopt Hetch Hetchy Power Rates for FY 2025-26, adopt Facility Rental Fees for Camp Mather Cabin #2 for FY 2024-25 and FY 2025-26, and review the updated FY 2025-26 rate plan for CleanPowerSF

Summary of Proposed
Commission Action:

Public Hearing to consider the adoption of (1) 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, 2025 and (2) revision of existing fees for rental of certain facilities beginning May 1, 2025 and updated on July 1, 2026. Separately, SFPUC staff are proposing to hold CleanPowerSF rates flat for Fiscal Year (FY) 2025-26. This action constitutes the Approval Action for the P roject for the purposes of the California Environmental Quality Act (CEQA) pursuant to San Francisco Administrative Code section 31.04(h). The Planning Department has determined that the Project is exempt from the CEQA. The Commission will rely on that determination to make its decision on this action.

Background: As required by the San Francisco Charter Section 8B.125, the San Francisco Public Utilities Commission (SFPUC) engaged an independent rate consultant for the 2022 SFPUC Power Rate Study (Study). Following the completion of this study, SFPUC adopted two years of rates for Hetch Hetchy Power (FY 2022-23 and FY 2023-24); for subsequent years the SFPUC has adopted one year of rates at a time.

This action covers the proposed rates for FY 2025-26, 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 initiated in Spring of 2025 and be completed in Spring of 2026, to recommend rates beginning FY 2026-27.
2022 SFPUC Power Rates Study
The 2022 Power Rate Study produced recommendations for updated rates as well as significant changes to how Hetch Hetchy Power Rates are set .1 A major goal of this study was to transition all customers to standardized rates

1 The findings for both Power business lines, Hetch Hetchy Power and CleanPowerSF, were summarized in the 2022 Power Rates Study Final Report.

Public Hearing: Adopt Hetch Hetchy Power Rates for FY 2025-26 Commission Meeting Date: April 8, 2025

Page 2 ends

based on the cost to serve each customer class rather than their legacy groupings (Retail, Enterprise, and General Use). This change is being implemented in a gradual manner to prevent rate shock to any particular customer. As of FY 2024- 25, some, but not all customer classes have reached full cost-of-service.

Key rate design changes implemented as part of the Study are:
• Establish Municipal General rates per customer class and escalate the all-in effective rate 2 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; beginning in FY 2024-25, these are consolidated into retail rates.

During this transition, the lost revenue from municipal general rates and discounted rates is reallocated across retail rate tariffs. The amount of reallocation will decrease each year as the municipal rates approach cost of service.

Since the completion of the 2022 Study, Power rates ha ve been adopted by the commission in one- or two-year rate packages. On May 24, 2022, the SFPUC Commission adopted Hetch Hetchy Power FY 2022- 23 and FY 2023-24 rates in Resolution 22-0095. Rates for the c urrent fiscal year were adopted by the SFPUC adopted in Resolution 24-0116 on May 14, 2024.

FY 2025-26 Rate Setting Overview
Staff proposes to increase retail rates by 10% to meet the updated rate revenue requirements. This is consistent with the forecast adopted in the FY 2026 – FY 2035 Ten-Year Financial Plan for Hetch Hetchy Power (Adopted by the Commission on February 11, 2025) . Additionally, the proposed FY 2025-26 rate update continues the annual $0.03/kWh escalation of General Use and Tuolumne County rates, steadily bringing these rates up to their cost of service.

Retail and General Use Rate Adjustments
Revenue Requirements
The Projected Hetch Hetchy Power revenue requirement for FY 2025-26 is $367.3 million, of which $228.7 million is needed from retail sales , a 16.1 percent increase from FY 2024-25. Costs include o perations and maintenance, power supply and delivery, gas and steam purchase, cash funded capital projects , and annual debt service . The primary drivers of increased costs for Hetch Hetchy Power are power supply and delivery and

2 Effective rates for each customer class are calculated by taking the sum of the projected revenues for that class and the energy usage and demand charges (where applicable), 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 2025-26 Commission Meeting Date: April 8, 2025

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capital investment.

Power supply and delivery charges have experienced significant volatility as regulatory changes, climate change, and geopolitical conflict impact the power market and are now the main driver of cost escalation for Hetch Hetchy Power . To mitigate a portion of the volatility risk, Hetch Hetchy Power establishes a budget that includes both projected power market purchases and delivery charges as well as additional contingency. If power purchases exceed the baseline budget, the added contingency enables staff to quickly access funds needed to secure power supplies in the market
without a need for a supplemental budget appropr iation process, which can take many months. If the contingency goes unused, any remainder falls to fund balance and can enable lower than projected rates in future years.

Ongoing and planned capital projects also contribute to increased costs. The Hetch Hetchy Power Capital Improvement Program includes increased investment to serve new Hetch Hetchy Power customers. The major in- City projects included in the Power Enterprise Capital Program are S an Francisco International Airport Substation and distribution facilities for new customers. For major upcountry projects, the main drivers include the Moccasin Powerhouse & Generator Step -Up Transformer Rehabilitation Project and the Moccasin Penstock Rehabilitation Project.

Attachment 1 provides a summary of the revenue requirements.

Customer Count and Usage Data
The rate update utilized calendar year 202 4 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 FY 2025-26 through FY 2034-35 10-Year Financial Plan. The billing data from calendar year (CY) 2023 to CY 2024 shows a 19
percent increase in
customers and t he projected volumetric growth in the 10- Year Financial plan shows a 4 percent growth in usage from FYE 2025 to FYE 2026. The majority of the account growth comes from new multi-family residential buildings in redevelopment zones along the east side of the City. This contributes in part to the growth in usage, which is also buoyed by new electrification projects in municipal facilities that are moving away from natural gas, gasoline, and diesel to heat buildings, power vehicles, and produce emergency power.

Below is the distribution of the projected FY 2025- 26 Hetch Hetchy Power customers and their corresponding energy usage by customer class. While residential customers make up the majority of the customer accounts, they are a small , but growing, percentage of the total energy usage. Industrial customers (such as the San Francisco Airport)
account for over half of
Hetch Hetchy energy usage.

Public Hearing: Adopt Hetch Hetchy Power Rates for FY 2025-26 Commission Meeting Date: April 8, 2025

Page 4 ends

Customer Class Number of
Customers
Annual Energy
Usage (MWh)
Residential 5,163 17,196
Small Commercial 3,923 78,992
Medium Commercial 289 173,888
Large Commercial 48 89,531
Industrial 40 627,982
Lighting 21 17,550
Proposed Retail Hetch Hetchy Power Rates
As stated above, the revenue requirements for Hetch Hetchy Power have increased by 16 percent, driven largely by increases in power purchase costs and capital investments. Some of these costs are offset by increased revenues from a 4 percent growth in projected power demand and use of fund balance in accordance with SFPUC’s reserve policy. For FY 2025-26, staff propose a 10% increase in rates to meet the remaining revenue requirements.

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, which equates to a

15.9% increase to $0.21877/kWh for FY 2025-26. Since rates were set last year, some customers have shifted dem and (kW) vs. energy (kWh) usage and the times they use demand and energy to peak or off-peak periods. As a result, the re- baselined General Use tariffs following up- to-date usage patterns may increase less than the expected three cent s – 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. In FY 2025- 26, the $0.03/kWh represents a 28.6% to 38.1% increase for Tuolumne County customers. This trajectory is expected to continue until the rates reach their cost of service , which will be examined during the next Power Rates Study.

Proposed Stanislaus County Industrial Rate
Hetch Hetchy Power currently provides electricity to Industrial Facilities in Stanislaus County. These customers are served at Transmission- level voltage, directly from City -owned lines. D ue to its lack of reliance on PG&E-owned facilities , this service likely incurs lower costs than in -City Public Hearing: Adopt Hetch Hetchy Power Rates for FY 2025-26 Commission Meeting Date: April 8, 2025

Page 5 ends

customers who require additional delivery charges.

There is only one current customer at this new rate. While this customer was previously served at rates set under contract and treated as a wholesale customer, SFPUC proposes a transition to retail rates in FY 2025-26 with a new tariff that is equivalent to a 30% discount from the I -1T Retail Industrial Rate. This rate will be subsequently updated following SFPUC’s current Power Rate Study where new cost of service rates will be established for this new tariff.

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, 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 2025-26 Rate Change
Retail Residential 10.0%
Tuolumne County Residential 38.1%
Retail Small Commercial 10.0%
General Use Small Commercial 15.9%
Tuolumne County Small Commercial 28.6% – 38.1%
Retail Medium Commercial 10.0%
General Use Medium Commercial 16.4% – 16.5%
Retail Large Commercial 10.0%
General Use Large Commercial 15.5% – 16.7%
Retail Industrial 10.0%
General Use Industrial 11.2% – 16.3%
Retail Lighting 10.0%
General Use Lighting 15.9%

SFPUC Mather Cabin #2 Rental Fees
The SFPUC maintains one overnight facility within Camp Mather that is a 3-bedroom, 7-person cabin known as Cabin #2. The annual rental season is from May 1 to October 31.

Only current SFPUC employees are eligible to reserve Cabin #2 for up to three nights each annual rental season and must be in the party using the reservation. Any exception must be granted in writing by the General Manager.

For many years, the SFPUC has maintained the current Cabin #2 rental fee of $50.00 per night. To recoup the increased costs of upkeep, the SFPUC proposes to establish a formal rate structure for Cabin #2 commensurate to a 6-person Cabin as listed in the annual Camp Mather rate sheet for San Public Hearing: Adopt Hetch Hetchy Power Rates for FY 2025-26 Commission Meeting Date: April 8, 2025

Page 6 ends

Francisco Residents produced by the San Francisco Department of Parks and Recreation (SFRPD). The proposed SFPUC rate is slightly discounted from the SFRPD rate because the SFRPD rate includes the Camp Mather Day-Use Fee. Guests who stay at Cabin #2 who would like to use the Camp Mather amenities will have to pay the Day -Use fee directly to the Camp Mather administration office. The proposed rate will be $270 for FY 2024- 25 and $275 for FY 2025-26.

The General Manager’s Office will prepare and submit to the Commission A semi -annual report on the usage of Cabin #2. The report will list all names of guests, charges, and balances.

CleanPowerSF Rate Plan Update
In the FY 2026 – FY 2035 Ten -Year Financial Plan , a dopted by the Commission on February 11, 2025, staff proposed a three -percent increase to CleanPowerSF generation rates. The goal of this rate increase was to enable CleanPowerSF to achieve its financial reserve target of 180 days cash on hand by the end of FYE 2026. Since the adoption of the Ten -Year Plan, staff has reviewed the latest power purchase actuals and revised the projected expenditures for FYE 2025 and beyond. Year -to-date actuals are below our budgeted projections and ou r year -
end projections overall are
$12 million lower than our budget. S avings are due to lower cost of power and lower overall power purchase quantity. The lower power purchase quantity results in a $4 million decrease in revenues, leading to an $8 million improvement in overall net revenues. Additionally, the Power Enterprise budgets an additional $30 million in power purchase contingency to provide a buffer if power costs unexpectedly climb. In the event those funds are not used, they will be transferred to fund balance.

Given these changes in the financial forecast for FYE 2025 and FYE 2026, staff have determined that CleanPowerSF will not need to increase rates to achieve the targeted 180 days cash on hand by the end of FYE 2026. Staff propose to
forego the initially proposed three percent increase in CleanPowerSF rates and hold rates flat for at least one year.

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 2025 -26 rate -
setting methodology, objectives,
preliminary analysis, and final tariff proposals have been discussed in a series of meetings on January 14, February 4, and February 25, 2025.

Additionally, staff has provided ratepayers with additional information about the proposed rate adjustments via a multipronged public outreach effort. Staff held two public webinars on April 1 and April 2, 2025. The webinars summarized the proposed rate changes and offering opportunities for the public to engage with staff on any questions they have about the proposed rates and the rates setting process. A dedicated power rates landing page at sfpuc.org/PowerRates has been established with news of Public Hearing: Adopt Hetch Hetchy Power Rates for FY 2025-26 Commission Meeting Date: April 8, 2025

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upcoming public events, the Commission hearing notice, links to presentations, and the final rates once adopted . This website has been promoted on bill messages, multilingual rate notice bill inserts, e - newsletters, and direct mail postcards. This information includes a telephone number that customers can call for details.

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 March 21, 23, 26, 27, and 28, 2025 and posted on the SFPUC website and at the San Francisco Public Library, for a public hearing on April 8 , 2025, with possible Commission action on this date.

Board of Supervisors Review
Pursuant to Charter Section 8B.125, Commission action adopting rates and charges 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, 2025, and will remain effective until revised.

Environmental
Review:

On March 25, 2025, the San Francisco Planning Department determined the Project to be statutoril y exempt from environmental review under the CEQA pursuant to Public Resources Code s ection 21080(b)(8) and the CEQA Guidelines s ection 15273 (Rates, Tolls, Fares and Charges) ( Case No. 2025-002445ENV) 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-
se47f45066412418483484945d7dcfc66

This action constitutes the Approval Action for the P roject for the purposes of the CEQA pursuant to San Francisco Administrative Code section

31.04(h).

Attachment: 1. Hetch Hetchy Power FY 2025-26 Revenue Requirement

2. Proposed Retail Electricity Rates for Hetch Hetchy Power and CleanPowerSF FY 2026 Memo

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 and 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 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 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, 2025; and

WHEREAS, Staff have prepared a schedule of updated rate tariffs using the rate models developed in the 2022 Power Rate Study; and

WHEREAS, A Notice of Public Hearing for this proposed rate action was duly provided, and a Public Hearing was held on April 8, 2025, 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 April 8 , 2025; and

WHEREAS, On March 25, 2025, the San Francisco Planning Department determined the Project to be statutorily exempt from environmental review under the California Environmental Quality Act ( CEQA) pursuant to Public Resources Code section 21080(b)(8) and the CEQA Guidelines section 15273 (Rates, Tolls, Fares and Charges) (Case No. 2025-002445ENV) 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, (4) obtaining funds for capital projects necessary to maintain service within existing service areas , and (5) obtaining funds necessary to maintain such intra- city transfers as are authorized by the City’s Charter; 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 Mather Cabin Number 2 rental charges be increased as provided in Schedule W-44 and described in Section 10 – Miscellaneous Fees, 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 an 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 rate 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 outside 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 2025-26 Rates
Customer Charge ($ per month) $8.91
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 227 kWh) $0.28052
Tier 2 (227 kWh - 524 kWh) $0.33663
Tier 3 (Over 524 kWh) $0.50494
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 252 kWh) $0.28052
Tier 2 (252 kWh - 579 kWh) $0.33663
Tier 3 (Over 579 kWh) $0.50494

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

Rate Component FY 2025-26 Rates
Customer Charge ($ per month) $8.91
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 250 kWh) $0.28052
Tier 2 (250 kWh - 578 kWh) $0.33663
Tier 3 (Over 578 kWh) $0.50494
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 418 kWh) $0.28052
Tier 2 (418 kWh - 960 kWh) $0.33663
Tier 3 (Over 960 kWh) $0.50494

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 2025-26 Rates
Customer Charge ($ per month) $6.24
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 227 kWh) $0.19637
Tier 2 (227 kWh - 524 kWh) $0.23564
Tier 3 (Over 524 kWh) $0.35346
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 252 kWh) $0.19637
Tier 2 (252 kWh - 579 kWh) $0.23564
Tier 3 (Over 579 kWh) $0.35346

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 currently require customers to have a maximum gross household income, before taxes and deductions, below 200% of the Federal Poverty Level.

Rate Component FY 2025-26 Rates
Customer Charge ($ per month) $6.24
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 250 kWh) $0.19637
Tier 2 (250 kWh - 578 kWh) $0.23564
Tier 3 (Over 578 kWh) $0.35346
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 418 kWh) $0.19637
Tier 2 (418 kWh - 960 kWh) $0.23564
Tier 3 (Over 960 kWh) $0.35346

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 residential 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 2025-26 Rates
Customer Charge ($ per month) $8.91
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 400 kWh) $0.28052
Tier 2 (400 kWh - 728 kWh) $0.33663
Tier 3 (Over 728 kWh) $0.50494
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 568 kWh) $0.28052
Tier 2 (568 kWh - 1110 kWh) $0.33663
Tier 3 (Over 1110 kWh) $0.50494

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 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 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 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 2025-26 Rates
Customer Charge ($ per month) $8.91
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 727 kWh) $0.28052
Tier 2 (727 kWh - 1024 kWh) $0.33663
Tier 3 (Over 1024 kWh) $0.50494
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 752 kWh) $0.28052
Tier 2 (752 kWh - 1079 kWh) $0.33663
Tier 3 (Over 1079 kWh) $0.50494

Schedule R-ME: Residential Medical Necessity Assistance Program, Electric Heating Eligibility: Applicable to residential user s with all electric heating who have submitted an application and certified in writing that at least 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 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 patient/person or to prevent deterioration of the patient/person's medical condition.

Rate Component FY 2025-26 Rates
Customer Charge ($ per month) $8.91
Summer Energy Charge ($ per kWh)
Tier 1 (0 kWh - 750 kWh) $0.28052
Tier 2 (750 kWh - 1078 kWh) $0.33663
Tier 3 (Over 1078 kWh) $0.50494
Winter Energy Charge ($ per kWh)
Tier 1 (0 kWh - 918 kWh) $0.28052
Tier 2 (918 kWh - 1460 kWh) $0.33663
Tier 3 (Over 1460 kWh) $0.50494

Residential Low Income Common Area, Vacant Units, and Master-Metered Facilities 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 th ese criteria will receive a 30% discount off all electric service charges. Similarly, certain older low -income residential facilities with master -metering (a single meter that serves the entire building and is billed to a single entity) may be eligible for this discount.

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 11 – Definitions for more information.

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

Rate Component FY 2025-26 Rates
Customer Charge ($ per month)
Single Phase Meter (S) $17.63
Poly Phase Meter (P) $44.11
Summer Energy Charge ($ per kWh) $0.36566
Winter Energy Charge ($ per kWh) $0.29385

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 2025-26 Rates
Customer Charge ($ per month) $314.29
Energy Charge ($ per kWh)
Summer $0.23242
Winter $0.18926
Demand Charge ($ per kW) $25.50
Schedule C-2P: Medium Commercial, Primary Voltage
Eligibility: Applicable to medium commercial customers served at primary voltage.

Rate Component FY 2025-26 Rates
Customer Charge ($ per month) $293.84
Energy Charge ($ per kWh)
Summer $0.20973
Winter $0.17102
Demand Charge ($ per kW) $21.09

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

Rate Component FY 2025-26 Rates
Customer Charge ($ per month) $2,044.27
Summer Energy Charge ($ per kWh)

On-Peak $0.14936
Part-Peak $0.14936
Off-Peak $0.12282
Winter Energy Charge ($ per kWh)
Part-Peak $0.13215
Off-Peak $0.12273
Summer Demand Charge ($ per kW)

On-Peak $19.02
Part-Peak $15.51
Maximum $34.79
Winter Demand Charge ($ per kW)
Maximum $34.79

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

Rate Component FY 2025-26 Rates
Customer Charge ($ per month) $1,914.03
Summer Energy Charge ($ per kWh)

On-Peak $0.11611
Part-Peak $0.11611
Off-Peak $0.09636
Winter Energy Charge ($ per kWh)
Part-Peak $0.10330
Off-Peak $0.09628
Summer Demand Charge ($ per kW)

On-Peak $15.88
Part-Peak $13.28
Maximum $28.25
Winter Demand Charge ($ per kW)
Maximum $28.25

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 2025-26 Rates
Customer Charge $2,045.64
Summer Energy Charge ($ per kWh)

On-Peak $0.13417
Part-Peak $0.13417
Off-Peak $0.11125
Winter Energy Charge ($ per kWh)
Part-Peak $0.11924
Off-Peak $0.11084
Summer Demand Charge ($ per kW)

On-Peak $20.20
Part-Peak $15.91
Maximum $35.95
Winter Demand Charge ($ per kW)
Maximum $35.95

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

Rate Component FY 2025-26 Rates
Customer Charge $1,964.40
Summer Energy Charge ($ per kWh)

On-Peak $0.13066
Part-Peak $0.13066
Off-Peak $0.10864
Winter Energy Charge ($ per kWh)
Part-Peak $0.11631
Off-Peak $0.10823
Summer Demand Charge ($ per kW)

On-Peak $20.49
Part-Peak $16.93
Maximum $33.26
Winter Demand Charge ($ per kW)
Maximum $33.26
Schedule I-1T: Industrial, Transmission Voltage
Eligibility: Applicable to industrial customers served at transmission voltage.

Rate Component FY 2025-26 Rates
Customer Charge $1,914.03
Summer Energy Charge ($ per kWh)

On-Peak $0.12909
Part-Peak $0.12909
Off-Peak $0.10728
Winter Energy Charge ($ per kWh)
Part-Peak $0.11488
Off-Peak $0.10688
Summer Demand Charge ($ per kW)

On-Peak $25.23
Part-Peak $25.23
Maximum $22.77
Winter Demand Charge ($ per kW)

Maximum $22.77

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 2025-26 Rates
Customer Charge ($ per month) $548.14
Summer Energy Charge ($ per kWh)

On-Peak $0.15853
Part-Peak $0.15853
Off-Peak $0.12399
Winter Energy Charge ($ per kWh)

Part-Peak $0.13604
Off-Peak $0.12337
Summer Demand Charge ($ per kW)
Max $7.16
Winter Demand Charge ($ per kW)

Max $7.16
Schedule IR-1T: Stanislaus County Industrial Rate, Transmission Voltage Eligibility: Applicable to Industrial facilities in Stanislaus County taking service directly from City-owned transmission lines.

Rate Component FY 2025-26 Rates
Customer Charge $1,339.82
Summer Energy Charge ($ per kWh)

On-Peak $0.09036
Part-Peak $0.09036
Off-Peak $0.07510
Winter Energy Charge ($ per kWh)
Part-Peak $0.08042
Off-Peak $0.07482
Summer Demand Charge ($ per kW)

On-Peak $17.66
Part-Peak $17.66
Maximum $15.94
Winter Demand Charge ($ per kW)

Maximum $15.94

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 2025-26 Rates
Customer Charge ($ per month) $17.63
Energy Charge ($ per kWh)
On-Peak $0.40679
Off-Peak $0.28395

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 2025-26 Rates
Energy Charge ($/kWh) $0.32726
Schedule LS-3: Street Lighting
Eligibility: Applicable to street lighting or outdoor lighting customers.

Rate Component FY 2025-26 Rates
Energy Charge ($/kWh) $0.32726

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
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 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 2025-26 Rates
Customer Charge ($ per month)
Single Phase Meter (S) $17.63
Poly Phase Meter (P) $44.11
Summer Energy Charge ($ per kWh)
On-Peak $0.39494
Part Peak $0.39494
Off Peak $0.33760
Winter Energy Charge ($ per kWh)
Part Peak $0.30184
Off Peak $0.28664

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 2025-26 Rates
Customer Charge ($ per month) $314.29
Summer Energy Charge ($ per kWh)
On-Peak $0.25755
Part-Peak $0.25755
Off-Peak $0.20823
Winter Energy Charge ($ per kWh)
Part-Peak $0.19787
Off-Peak $0.18148
Demand Charge ($ per kW) $25.50
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 2025-26 Rates
Customer Charge ($ per month) $293.84
Summer Energy Charge ($ per kWh)
On-Peak $0.23225
Part-Peak $0.23225
Off-Peak $0.18802
Winter Energy Charge ($ per kWh)
Part-Peak $0.17874
Off-Peak $0.16403
Demand Charge ($ per kW) $21.09

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 . 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 11 – Definitions for more information.

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 2025-26 Rates
Customer Charge ($ per month)
Single Phase Meter (S) $11.72
Poly Phase Meter (P) $29.32
Summer Energy Charge ($ per kWh) $0.23840
Winter Energy Charge ($ per kWh) $0.19067

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 2025-26 Rates
Customer Charge ($ per month) $250.09
Summer Energy Charge ($ per kWh) $0.17513
Winter Energy Charge ($ per kWh) $0.14080
Demand Charge ($ per kW) $20.29

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 2025-26 Rates
Customer Charge ($ per month) $268.21
Summer Energy Charge ($ per kWh) $0.18018
Winter Energy Charge ($ per kWh) $0.14485
Demand Charge ($ per kW) $19.25

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 customers served at secondary voltage who are eligible for General Use rates.

Rate Component FY 2025-26 Rates
Customer Charge ($ per month) $2,009.52
Summer Energy Charge ($ per kWh)

On-Peak $0.12792
Part-Peak $0.12792
Off-Peak $0.10184
Winter Energy Charge ($ per kWh)
Part-Peak $0.09096
Off-Peak $0.08338
Summer Demand Charge ($ per kW)

On-Peak $18.70
Part-Peak $15.25
Maximum $34.19
Winter Demand Charge ($ per kW)
Maximum $34.19

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 2025-26 Rates
Customer Charge ($ per month) $1,792.56
Summer Energy Charge ($ per kWh)

On-Peak $0.09074
Part-Peak $0.09074
Off-Peak $0.07224
Winter Energy Charge ($ per kWh)
Part-Peak $0.07875
Off-Peak $0.07217
Summer Demand Charge ($ per kW)

On-Peak $14.87
Part-Peak $12.44
Maximum $26.46
Winter Demand Charge ($ per kW)

Maximum $26.46

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 2025-26 Rates
Customer Charge ($ per month) $2,148.59
Summer Energy Charge ($ per kWh)

On-Peak $0.11051
Part-Peak $0.11051
Off-Peak $0.08645
Winter Energy Charge ($ per kWh)
Part-Peak $0.09483
Off-Peak $0.08600
Summer Demand Charge ($ per kW)

On-Peak $21.22
Part-Peak $16.70
Maximum $37.76
Winter Demand Charge ($ per kW)
Maximum $37.76

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 2025-26 Rates
Customer Charge ($ per month) $2,111.70
Summer Energy Charge ($ per kWh)

On-Peak $0.10870
Part-Peak $0.10870
Off-Peak $0.08503
Winter Energy Charge ($ per kWh)
Part-Peak $0.09328
Off-Peak $0.08460
Summer Demand Charge ($ per kW)

On-Peak $22.03
Part-Peak $18.20
Maximum $35.76
Winter Demand Charge ($ per kW)
Maximum $35.76

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 street lighting or outdoor lighting customers who are eligible for General Use rates.

Rate Component FY 2025-26 Rates
Energy Charge ($ per kWh) $0.21877

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 2025-26 Rates
Energy Charge ($ per kWh) $0.10875

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 2025-26 Rates
Energy Charge ($ per kWh) $0.10875
Schedule UH0047: 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 2025-26 Rates
Energy Charge ($ per kWh) $0.13500

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 Power 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 2025-26 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 Metering. 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 SFPUC 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 billing 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 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.

2. For customers on a Time -of-Use Rate (“TOU”) 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, during any TOU period, the value of the excess kilowatt -hours (kWh) produced during that TOU period shall be calculated according to the 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 monetary 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 received 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 prior 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, SFPUC 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 with 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 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 responsible for payment of all fees, rates and charges associated with the operation 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 properties 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 extended 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 configuration. 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 account”. 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 electricity 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 install 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 otherwise 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 twelve 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 benefitting 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 exceeds 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 responsible 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 National 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 responsible 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) Off-Peak 9:30 pm to 8:30 am
All day
Monday through Friday (except holidays)
Saturday, Sunday, and holidays.

W
inter (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.

H
olidays
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 – Miscellaneous Fees
Amend Schedule W-44 to include the updated Camp Mather Cabin #2 Fees as follows Fee Name FY 2024-25 Rates FY 2025-26 Rates
Camp Mather Cabin #2 $270/night $275/night
The Camp Mather Cabin #2 fees will become effective on May 1 for Fiscal Year 2025. The fees will then be updated on July 1, 2026 for FY 2025-26.

Section 11 – 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 to 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 for 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 reflect 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 service, 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 12 – 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 requirements 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 13 – 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 validity 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 14 – Effective Date
The rates adopted pursuant to this resolution shall be effective no sooner than 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, 2025.

The updated rental facility fees shall be effective May 1, 2025 for FY 2024-25 rentals and will be updated on July 1, 2026.

I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of April 8, 2025.

Director of Commission Affairs
San Francisco Public Utilities Commission

ATTACHMENT 1

San Francisco Public Utilities Commission
FY 2025-26 Hetch Hetchy Power Revenue Requirement
FYE 2026
Expenses
Hetch Hetchy Water (Upcountry) Operating Expenses
Labor / Personnel 40,893,878$
Materials & Supplies 2,974,413$
Non-Personnel Services 36,146,102$
Services of Other Departments 2,865,655$
Services of Bureaus 16,524,787$
Capital Outlay 2,074,190$
Hetch Hetchy Power (Downcountry) Operating Expenses
Labor / Personnel 22,333,326$
Materials & Supplies 1,382,665$
Non-Personnel Services
Power Transmission and Distribution 65,004,415$
Power Purchase 61,294,800$
Gas Purchase 19,878,228$
Steam Purchase 2,950,402$
Other Non-Personnel 13,420,951$
Services of Other Departments 3,915,572$
City Grant Program -$
Services of Bureaus 12,917,495$
Capital Outlay 702,115$
Transfers Out 727,356$
Programmatic and Capital Expenses
Programmatic Expenses 23,376,605$
Revenue Funded Capital - Water 7,338,910$
Revenue Funded Capital - Power 40,945,366$
Debt Service 13,558,051$
Total Expenses 391,225,281$
Change in Fund Balance (23,910,716)$
Total Revenue Requirement 367,314,564$
Non-Retail Rate Revenues
Wholesale Revenues 28,127,898$
Non-Rate Revenues 50,851,539$
Hetch Hetchy Water Assessment 54,146,667$
Treasure Island Revenues 5,400,000$
Federal Bond Interest Subsidies 78,924$
Hetch Hetchy Power Rate Revenue Requirement 228,709,537$

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: 31 March 2025

TO: San Francisco Public Utilities Commission
FROM: Rate Fairness Board
SUBJECT: Proposed retail electricity rates for Hetch Hetchy Power and CleanPowerSF for FY 2026:

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 Staff’s proposed retail electricity rates for Hetch Hetchy Power and CleanPowerSF for the period July 1, 2025, to June 30, 2026:

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 has for the previous 2 years, 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 for no increase in CleanPowerSF rates is a welcome relief after several years of increases. This outcome is due, in part, to staff allocating available funds to the fund balance. We, of course, find this proposal to be fair and reasonable.

5. The 10% overall rate increase for Hetch Hetchy Power, and the 3-cent per kilowatt- hour increase for the GUSE rates, are in line with the Staff’s goals, established 3 years ago, for a multi-year move toward rates based on cost of service as well as for rate simplification. We continue to believe that the ultimate rate goals are reasonable, fair, and necessary. This year’s rate proposed rate changes are an important step in the journey.

We note that these rate increases for Hetch Hetchy Power, 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.

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:

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

CleanPowerSF Sfpuc CommissionApril 8, 2025

CleanPowerSF Sfpuc Commission
April 8, 2025