1 Overview of
SFPUC Wholesale Customers,
Water Supply Agreement, and the
Bay Area Water Supply and Conservation Agency
2 • The SFPUC owns and operates
the Hetch Hetchy Regional
Water System which currently
serves 2.7 million residents and
thousands of businesses in four
Bay Area counties: Alameda,
Santa Clara, San Mateo, San
Francisco.
• We deliver potable water to
our Wholesale Customers.
History
3 • Spring Valley Water Company was a predecessor water provider to the Hetch Hetchy Regional Water System.
• Spring Valley’s assets were purchased by the City and County of San Francisco in 1930 and continue to serve our regional customers. • Spring Valley and the SFPUC have served customers in the Bay Area throughout our history.
• In addition to our Wholesale Customers, we currently serve suburban retail customers (who we bill directly) outside the City and County of San Francisco.
History
4 • The current contract with our Wholesale Customers – the Water Supply Agreement – originates from litigation filed by Palo Alto in the 1970’s. • The litigation alleged unfair wholesale rate setting. • Litigation was resolved via a Settlement Agreement and Master Water Sales Contract in 1984.
• The current contract – the Water Supply Agreement – was a successor contract agreed to in 2009. Amendments since 2009 have resulted in modifications to improve administration of various contract areas. • The WSA expires in 2034, with the possibility of 2 five-year extensions.
Water Supply Agreement
5 • Supply Assurance: 184 MGD
• The 1984 Settlement Agreement and Master Water Sales Contract created a perpetual “Supply Assurance” of 184 MGD to the Wholesale Customer Service Area*. (*Not including San Jose and Santa Clara)
• Individual Supply Guarantee (ISG): A Wholesale Customer’s share of the Supply Assurance
• In turn, the Supply Assurance was used as the basis for Individual Supply Guarantees that were negotiated among 23* of the Wholesale Customers. • ISGs are critical for planning purposes:
• They are the basis for Urban Water Management Plans and are used in land use decisions by the planning agencies associated with Wholesale Customers. *Three Wholesale Customers do not have ISGs: Hayward, San Jose and Santa Clara (WSA Article 3).
Supply Assurance, Individual Supply Guarantees
0 5
10 15
20 25
30 35
40 Individual Supply Guarantee (ISG)
FY 2023-24 Purchases
Projected 2050 Purchase Request
Million Gallons per Day (mgd)
No ISG
No ISG
ISG vs Purchases
6 Other Key Elements of the WSA
• Numerous elements pertain to accounting and rate setting, including asset classification (water, power, joint)
• Four Wholesale Customers have Minimum Purchase obligations:
Alameda County Water District, Milpitas, Sunnyvale, and Mountain View • Attachment H describes the Water Shortage Allocation Plan (the ground rules for drought supply reductions) between the SFPUC and the Wholesale Customers
7 Water Conservation, Use of Local Sources
• All Wholesale Customers are obligated to comply with state and federal water conservation requirements and use recycled water if available • 3.06 D. San Francisco and each Wholesale Customer agree that they will diligently apply their best efforts to use both surface water and groundwater sources located within their respective service areas and available recycled water to the maximum feasible extent, taking into account the environmental impacts, the public health effects and the effects on supply reliability of such use, as well as the cost of developing such sources.
8 9
• The Wholesale Customers originally met and conferred as the Bay Area Water Users Association (BAWUA) starting in the 1970’s. • In 2002, the Bay Area Water Supply and Conservation Agency (BAWSCA) was formed as a CA special district [AB 2058 (Lou Papan)]. • BAWSCA currently represents the interests of the 26 Wholesale Customers (BAWSCA member agencies) in discussions with the SFPUC.
Bay Area Water Supply and Conservation Agency
10 • It is the intent of the Legislature to …. establish a multicounty agency authorized to plan for and acquire supplemental water supplies, to encourage water conservation and use of recycled water on a regional basis, and to assist in the financing of essential repairs and improvements to the San Francisco regional water system, including seismic strengthening.
• The need for coordinated planning and implementation of strategies for water supply, water conservation, water recycling, and repair and improvement of the San Francisco regional system may appropriately lead to the establishment of the … Agency.
AB2058 Stated Intent of BAWSCA
11 • BAWSCA’s Board is composed of officials appointed from the 26 member agencies, along with 9 staff members led by CEO Tom Smegal. • The BAWSCA Board meets every two months, with their Board Policy Committee meeting during the intervening months.
• BAWSCA also meets monthly with staff representatives from the 26 member agencies to discuss items of shared interest.
Bay Area Water Supply and Conservation Agency
12 • BAWSCA provides the SFPUC a single point of contact for water supply demand and planning data for the wholesale service area. • BAWSCA efforts and programs support the Regional Water System by providing various efficiencies for required reporting, water supply planning and conservation services to the Wholesale Customers. • BAWSCA ensures efficiency throughout the region by assisting in negotiations across the member agencies.
BAWSCA Represents the Region
13 • Participating in the SWRCB’s Bay Delta Water Quality Control Plan Update to ensure member agency interests are represented.
• Participating in the New Don Pedro and La Grange FERC proceedings to protect regional water supplies.
• Administering BAWSCA’s revenue bonds issued to retire capital debt owed by Wholesale Customers to San Francisco.
BAWSCA Focus Areas
14 • Overseeing SFPUC’s WSIP, 10-Year Capital Plan Program, Regional Water System Asset Management Program, and Emergency Response • Implementing BAWSCA’s Long-Term Reliable Water Supply Strategy • Supporting near term water supply solutions for members • Taking actions to protect members’ water supply and financial interests in administration of the WSA
• Supporting members in receiving reliable communication of water quality issues
BAWSCA Areas of Focus