Services of the San Francisco Public Utilities Commission
OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
525 Golden Gate Ave.
San Francisco, CA 94102
415.554.3155
sfpuc.gov
March 16, 2026
TO: Commissioner Joshua Arce, President
Commissioner Steve Leveroni, Vice President
Commissioner Avni Jamdar
Commissioner Kate Stacy
Commissioner Meghan Thurlow
THROUGH: Dennis J. Herrera, General Manager
FROM: Steven R. Ritchie, Assistant General Manager, Water
RE: 2009 Water Supply Agreement Update
This memo provides our quarterly update on the SFPUC’s activities required by the 2009 Water Supply Agreement (WSA).
Per the WSA, SFPUC provides the following to BAWSCA on an ongoing basis:
• Weekly water delivery data for San Francisco, South/East Bay, and the Peninsula;
• Monthly Hydrologic Conditions Report;
• Monthly water sales data, including “Suburban Resale” and City Retail water use data;
• Water Quality “blend change” notices and other notifications as needed, in accordance with the Water Quality Notification and Communications Plan; • Monthly BAWSCA Bond Surcharge Collection Report per Prepayment and Collection Agreement between BAWSCA and SFPUC; and
Since the last update on November 3, 2025, the SFPUC has also completed the following actions:
1. Met with BAWSCA, San Jose and Santa Clara to collaborate on planning efforts regarding future needs in consideration for their request for permanent status.
2. Completed coordination with BAWSCA related to Wholesale Customer adoption of Amendment to the Water Supply Agreement adjusting Minimum Annual Purchase Quantities and other items.
3. Provided BAWSCA the FY 2024-25 Prepayment and Collection Agreement Annual Report on November 5, 2025 (Section 3.06 B of the Prepayment and Collection Agreement).
4. Held the SFPUC’s 13th Annual Water Quality & Technology Workshop on November 20, 2025. (WSA Section 3.08.C)
5. Issued FY 2024-25 Wholesale Revenue Requirement (WSA Section 7.03) on November 25, 2025.
6. Issued 2025 Annual Water Supply Development Report on December 1, 2025 (WSA Section 4.05).
7. On December 12, 2025 transmitted the Draft FY 2027-36 Water Enterprise and Hetch Hetchy 10-Year Capital Plans to BAWSCA for review and comment (WSA 6.09.E).
1. On December 29, 2025 and January 21, 2026 met with BAWSCA to discuss FY 2027-36 Water Enterprise and Hetch Hetchy 10-Year Capital Plans (WSA
6.09.E).
2. Provided the FY 2026-27 Wholesale water rate range to BAWSCA on January 14, 2026 (not required but related to WSA Section 6.03).
3. On January 15, 2026 transmitted the FY 2027-36 Water Enterprise and Hetch Hetchy 10-Year Capital Plans and Commission materials to BAWSCA (WSA
6.09.E).
4. Provided a dry-year water supply update on February 1st in the form of a letter to the State legislature and Department of Public Health per AB1823 requirements with a copy to BAWSCA, (not a WSA requirement, but included here for informational purposes).
5. Provided water supply conditions reports to the Wholesale Customers on February 3rd and March 3rd with initial estimates of available water supply in the coming year (WSA Attachment H, Section 6.1.1).
6. Assist with coordination of the quarterly meeting of the Water Quality Committee on February 18, 2026 (WSA Section 3.08.C).
7. Held the Annual Wholesale Customer Meeting on February 19, 2026 (WSA Section 8.03).
8. Continued review and response to questions submitted as part of the FY 2023-24 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review. (WSA Section 7.06).
9. Began compliance audit of FY 2024-25 Wholesale Revenue Requirement (WSA Section 7.03).
10. Coordinated with BAWSCA on 2025 Urban Water Management Plan common language development and schedule.
11. Initiated discussions with BAWSCA on potential amendments to the WSA in advance of 2028 WSA deadlines.
In the near-term, the SFPUC is working to complete the following actions:
1. Continued review and response to questions submitted as part of the FY 2023-24 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review. (WSA Section 7.06).
2. Complete compliance audit of FY 2024-25 Wholesale Revenue Requirement (WSA Section 7.03).
3. Continue discussions on potential amendments to the WSA in advance of 2028 WSA deadlines.
4. Issue FY 2026-27 SFPUC Wholesale Water Rates Notice.
5. Approve the FY 2026-27 SFPUC Wholesale Water Rates at the April 14, 2026 Commission meeting.
6. Provide final water supply conditions report to the Wholesale Customers in April 2026, of available water supply in the coming year (WSA Attachment H, Section 6.1.1).
7. Provide forecasts to wholesale customers subject to minimum purchase requirements of expected FY 2025-26 water sales and compliance with minimum purchase requirements.
8. Assist with coordination of the quarterly meeting of the Water Quality Committee on May 20, 2026 (WSA Section 3.08.C).
9. Continue financial reconciliation work required by 2018 WSA Amendments to asset classification for specific Hetch Hetchy projects.
Please contact me if you have any questions.
cc: Tom Smegal, BAWSCA CEO/General Manager