CleanPowerSF Sfpuc Commission
January 12, 2026

Ten-Year Financial
Plan
Financial Planning Team
41 42
Financial Plan Background
• Charter-mandated 10-Year Financial Plan incorporates capital plan, operating budgets, sales volume forecasts, and financial policies to project needed rate increases
• Proposed plans balance competing pressures for affordability, long-term financial sustainability, regulatory compliance, and infrastructure investment • Crucial for financial sustainability and credit ratings: plans exceed key financial policy minimums
• Current debt service coverage: all plans 1.22x – 7.37x vs. minimum of 1.10x • Fund balance reserves: all plans 35%-94% vs. minimum of 25% • Revenue-funded % of capital plan: all plans 23%-100% vs. minimum of 15%-30% • Conservative assumptions on interest rates, sales volumes, expense growth and availability of external financing to further reduce risk of shortfalls 43 Water & Wastewater Key Financial Drivers
• Lower sales volumes from
draft water planning
forecasts, adjusted down
for conservatism
• Increased salary and fringe
escalation and operating
costs for new facilities =
higher operating expenses
• Large capital plans and
more front-loaded
expenses require higher
short-term rate increases
0 20
40 60
80 100
120
140
160
Annual Water Sales (Millions of Gallons per Day)
Last Year's Projection Actual Retail Sales
Actual Wholesale Sales Projected Retail Sales
Projected Wholesale Sales
44 Water& Wastewater Rate Plan
$171
$389
$490
$0
$100
$200
$300
$400
$500
$600
Average Monthly Residential Water and Sewer Bill
Sewer Bill
Water Bill
Typical Household Affordability Target
Low-Income Household Affordability Target
Retail
Water Rate
Change
Wastewater
Rate
Change
Combined
Bill
Increase
Wholesale
Water Rate
Change
FYE 2027* 7.0% 15.0% 10.5% 7.6%
FYE 2028* 7.0% 14.5% 12.5% 7.2%
FYE 2029 7.5% 13.0% 10.7% 3.1%
FYE 2030 7.5% 13.0% 11.3% 2.5%
FYE 2031 7.5% 12.0% 10.4% 4.5%
FYE 2032 7.0% 8.0% 7.7% 5.5%
FYE 2033 6.0% 8.0% 7.3% 5.3%
FYE 2034 6.0% 8.0% 7.3% 3.0%
FYE 2035 4.5% 5.0% 3.7% 3.7%
FYE 2036 4.5% 5.0% 4.8% 0.5%
10-Year Avg 6.4% 10.1% 8.6% 4.3%
20-Year Avg 3.8% 6.4% 5.4% 3.8%
* Rates expected to be adopted in Spring 2026
45 Hetch Hetchy Key Financial Drivers
• Lower short-term power sales
due to delays in
redevelopment projects
• Higher long-term power sales
due to large customer
acquisition and electrification
• Lower power supply costs
• Large increase in capital
improvement plan
• Driven by and paid for by
new development
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Hetch Hetchy Power Retail Sales Volumes
(GWh)
Last Year’s Projection Actual Retail Sales
Projected Retail Sales
Hetch Hetchy Power Rate Plan
Retail Rate
Increase
FYE 2027* 7.0%
FYE 2028 7.0%
FYE 2029 6.5%
FYE 2030 6.5%
FYE 2031 6.5%
FYE 2032 6.5%
FYE 2033 6.5%
FYE 2034 6.5%
FYE 2035 2.5%
FYE 2036 2.5%
10-Year Avg 5.8%
46 * Rates expected to be adopted in Spring 2026
$98
$209
$-
$50
$100
$150
$200
$250
Average Monthly Residential Hetch Hetchy Power Bill
CleanPowerSF Key Financial Drivers
• Power supply costs levelling
off after years of steep
increases
• Meeting fund balance
reserve policy target – strong
reserves
• Difficult competitive
environment in 2026 due to
PG&E’s own rates + fees
• Long-term growth likely from
electrification
47 $211
$380
$463
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
FYE
2021
FYE
2022
FYE
2023
FYE
2024
FYE
2025
FYE
2026
FYE
2027
FYE
2028
FYE
2029
FYE
2030
FYE
2031
Millions
CleanPowerSF Annual Expenses
Power Supply Other Operations & Maintenance Revenue-Funded Capital CleanPowerSF Rate Plan
$56 $59 $59 $63
$2
$9 $9 $4
$36
$36 $27 $27
$56 $59 $59 $63
$2
$35 $26 $26
$27
$5
$2 $2
$93
$104
$95 $94 $91 $85 $85
$92
$0
$50
$100
$150
CleanPowerSF
July 2025
PG&E
July 2025
CleanPowerSF
Jan 2026
PG&E
Jan 2026
CleanPowerSF
Mar 2026
PG&E
Mar 2026
CleanPowerSF
Jan 2027
PG&E
Jan 2027
CleanPowerSF vs. PG&E Average Monthly Residential Bills (E-TOU-C) PG&E Delivery PG&E Fees (PCIA/FFS) CleanPowerSF Generation PG&E Generation
PG&E Credits (PCIA)
48 Generation
Rate Increase
FYE 2027* -20% to -25%
FYE 2028 8.5%
FYE 2029 8.0%
FYE 2030 5.5%
FYE 2031 5.5%
FYE 2032 4.5%
FYE 2033 3.0%
FYE 2034 3.0%
FYE 2035 3.0%
FYE 2036 3.0%
10-Year Avg 1.4% to 2.1%
* Rates expected to be adopted in
January 2026 and effective March 2026