1 FY 2026-27 Miscellaneous Fees ProposalSan Francisco Public Utilities CommissionMatthew Freiberg, Rates ManagerMay 12, 2026 Background• Miscellaneous Fees: • Charged to individual customers for special services, as deposits, or penalty fees• Provide rate payer equity by aligning special costs with those that require service• Offset retail rate revenue requirements • Fees and Charges are reported and updated in the rate book every year
Miscellaneous Fee ProcessFall-Winter 2025•Develop fee calculations •Coordinate implementation with Customer Service •Prepare communications planJan – April 2026•Update fee basis with adopted budget •Finalize implementation plan•Prepare agenda items•Finalize recommendations with Executive TeamMay 2026•May 12 Commission HearingJuly 1, 2026•Adopted Miscellaneous Fees become effective, unless otherwise stated in the adopted resolution Methodology for Fee CalculationsCost of Providing Service = Fully burdened labor costs + Material/equipment costs𝐹𝑢𝑙𝑙𝑦 𝑏𝑢𝑟𝑑𝑒𝑛𝑒𝑑 𝑙𝑎𝑏𝑜𝑟 𝑐𝑜𝑠𝑡=𝐹𝑢𝑙𝑙𝑦 𝑏𝑢𝑟𝑑𝑒𝑛𝑒𝑑 ℎ𝑜𝑢𝑟𝑙𝑦 𝑟𝑎𝑡𝑒×𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑠𝑡𝑎𝑓𝑓 𝑡𝑖𝑚𝑒𝐹𝑢𝑙𝑙𝑦 𝑏𝑢𝑟𝑑𝑒𝑛𝑒𝑑 ℎ𝑜𝑢𝑟𝑙𝑦 𝑟𝑎𝑡𝑒=𝐻𝑜𝑢𝑟𝑙𝑦 𝑟𝑎𝑡𝑒 ×𝐹𝑟𝑖𝑛𝑔𝑒 𝑏𝑒𝑛𝑒𝑓𝑖𝑡𝑠 𝑚𝑢𝑙𝑡𝑖𝑝𝑙𝑖𝑒𝑟 ×𝑂𝑣𝑒𝑟ℎ𝑒𝑎𝑑 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒FYE 2027 SFPUC Overhead Allocation and Fringe Benefits RatesFringe Benefits RateOverhead Allocation RateEnterprise37.2%104.7%Water37.3%97.9%Sewer37.5%168.2%Hetch Hetchy PowerNot all Miscellaneous Fees are Implemented at 100% Cost of Providing Service Example of Cost of Providing Service CalculationTotal Cost of ServiceOther CostsOverhead Rate (104.7%)Fringe Benefits (37.2%)Labor SubtotalEstimated Time (Hours)FYE 2027Hourly RateLaborClass Title$373.25$0.00$161.53$57.44$154.283.00$51.43Utility Services Representative$427.30$0.00$184.92$65.76$176.622.00$88.31Senior Water Service Inspector$153.36$0.00$66.37$23.60$63.391.00$63.39Water Meter Repairer $1.90$1.90Printing Costs$955.80Totals$955.00Proposed Temporary Hydrant Connection Fee Temporary Hydrant Connection Fee
Proposed FY 2027 Miscellaneous FeesProposed Revised Water Fees•Temporary Hydrant Connection Fee•Temporary Hydrant Meter Rental Deposit•Hydrant Flushing Fee•Backflow Tag FeeProposed New Sewer Fees•Annual Self-Certification Non-Reporting Penalty Fine•Stormwater Management Ordinance Re-Inspection Fees•Administrative Civil Penalty Order FineProposed New Power Fees•Streetlight Application Fee•Streetlight Site Investigation Fee•Streetlight Photometrics Review Fee•Installed Streetlight Inspection Fee•Streetlight Shield Request Fee•Municipal Pole Use Fee (Non-Banner)•New, Upgrade or Removal of Metered Service Fee•Metered Service Modification Fee•Rules & Regulations Variance Fee•Generator Interconnection Fee•Gas Service Request Fee Water Miscellaneous Fee RevisionsCommission Resolution 25-0171 • Adopted on December 9, 2025• Rules and Regulations Governing Hydrant Use for Temporary Water Supply effective July 1, 2026• Proposal to revise three of the four existing fees in Schedule W-41B to recover additional labor costs associated with new Hydrant Use RulesCommission Resolution 25-0131 • Adopted September 9, 2025• Amendments to Section G of Rules and Regulations Governing Water Service related to Cross Connection Control• Proposal to revise Backflow Tag Fee in Schedule W-45 to partially recover the costs of cross connection control programUpdated rules and regulations that require higher level of effort from staff Proposed FY 2026-27 Water Enterprise Revised Miscellaneous FeesPercent Change Proposed Fee (FY 2026-27) Current Fee (FY 2025-26)W-41B: Water Service Connection Fees218%$955$300Temporary Hydrant Connection Fee19%1%1" Meter Deposit: $3,0603" Meter Deposit: $4,900PLUS 50 CCF Usage at W-1C Volumetric Rate1" Meter Deposit: $2,5793" Meter Deposit: $4,840PLUS 50 CCF Usage at W-1C Volumetric RateTemporary Hydrant Meter Rental Deposit25%$998PLUS 13 CCF at W-1C Volumetric Rate$798PLUS 13 CCF at W-1C Volumetric RateHydrant Flushing FeePercent Change Proposed Fee (FY 27) Current Fee (FY 26)W-45: Water Enterprise Regulatory Compliance Fees 7%$32$30Backflow Tag Fee Stormwater Management OrdinanceStormwater Management Ordinance (SMO) OverviewThe SMO requires installation and maintenance of stormwater management controls for all new and redevelopment projects that create and/or replace 5,000 square feet or more of impervious surface in combined sewer areas or 2,500 square feet or more in separate sewer areas.Benefits of SMO Compliance• SMO enforcement supports SFPUC’s compliance with NPDES Municipal Separate Storm Sewer System Phase II permit• Reduce the need for downstream collection system upgrades for individual development projects• Provides operational efficiencies for staff SMO Inspection Requirements OverviewStormwater Management Requirements and Design Guidelines (SMR) mandates two inspection requirements for stormwater controls to ensure stormwater management facilities are properly maintained post construction• Annual Self-Certification• Triennial Inspection Stormwater Management Ordinance (SMO) Enforcement ChallengesSMO Compliance ChallengesPost occupancy, SMO is reporting low compliance with required reporting, inspections, and asset management from customers. • ~40% failure to perform annual self certification• Difficulty securing inspections• Low compliance with corrective action requirementsStaff ProposalStormwater team is proposing to establish three miscellaneous fees to incentivize customer compliance as part of their Enforcement Response Plan (ERP) for SMO inspections:•Annual Self-Certification (ASC) Non-Reporting Penalty Fine•Stormwater Management Ordinance Re-Inspection Fees•Administrative Civil Penalty Order (ACPO) Fine Proposed FY 2026-27 New Wastewater Enterprise Miscellaneous FeesProposed Fee(FY 2026-27) Fee Name$500Annual Self-Certification Non-Reporting Penalty FineStormwater Management Ordinance Re-Inspection Fees$6771stRe-Inspection Fee (50% Staff Time)$1,3532ndRe-Inspection Fee (100% Staff Time)$2,0303rdand Subsequent Re-Inspection Fees (150% Staff Time) Administrative Civil Penalty Order Fine$1,111/Day/Acre of Drainage Management Area out of complianceBase Fee Calculation*$1,000/Day$2,000/DayMaximum Daily Fee: Violations without intent or negligenceIntentional or negligent violations Power Miscellaneous FeesStreetlightingStreetlightingService ConnectionsService ConnectionsRules & Regulations Variance RequestsRules & Regulations Variance RequestsMunicipal Pole UseMunicipal Pole UseGenerator Interconnections Generator Interconnections Gas Service RequestsGas Service Requests• Certain specialized services of Hetch Hetchy Power (HHP) have been provided to customers free of charge.• Proposed fees pertain to the services related to:
Proposed FY 2026-27 New Power Enterprise Miscellaneous FeesProposed Fee (FY 2026-27)Fee Name$611Streetlight Application Fee$1,794Streetlight Site Investigation Fee$3,111 - $14,695Streetlight Photometrics Initial Submittal Review Fee$2,250 - $5,626Streetlight Photometrics Subsequent Review Fee$2,842 - $12,590Installed Streetlight Inspection Fee$3,317 (PUC Pole) / $6,357 (PG&E Pole)Streetlight Shield Fee$1,352 + $180/poleMunicipal Pole Use Fee (Non-Banner)$3,000New, Upgrade or Removal of Metered Service Fee$2,000Metered Service Modification Fee$5,030Rules & Regulations Variance Fee$145Generator Interconnection Fee$933Gas Service Request FeeStreetlight Installation Fees 14 Revised Water Fees •Updates to the SFPUC Rates Webpage•Mailers to entities that have paid Temporary Hydrant Connection Fees in recent yearsNew Wastewater Fees•Updates to the SFPUC Rates Webpage•Letter and email to all SMO properties (around 400), plus Building Owners and Managers Association, SF Apartment Association, design/development contacts. •Update the Stormwater Management RequirementswebpageNew Power Fees •Updates to the Hetch Hetchy Power Fee Webpage•Mailers will be sent to developer community about upcoming Streetlight Fees•Notices will also be provided to developers applying for permits about the pending changes•Mailers will be sent to all commercial district and neighborhood groups regrading non-banner pole use Customer Outreach and Communications
Miscellaneous Fees Staff RecommendationsAgenda Item :• Adopt Resolution on Revised Miscellaneous Fees Related to the Water EnterpriseAgenda Item : • Adopt Resolution on New Miscellaneous Fees Related to the Wastewater EnterpriseAgenda Item : • Adopt Resolution on New Miscellaneous Fees Related to the Power Enterprise QUESTIONS & DISCUSSION Thank you!
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: SFPUC, Financial Services AGENDA NUMBER: 10 MEETING DATE: May 12, 2026
Calendar: Regular Calendar
Project Manager: Matthew Freiberg
Public Hearing to Adopt New Miscellaneous Fees Related to the Power Enterprise Summary of Proposed
Commission Action:
Public Hearing to consider and possible action to adopt new fees for the San Francisco Public Utilit ies Commission Power Enterprise related to (1) streetlighting, (2) service connections, (3) rules and r egulations variance requests, (4) municipal pole use, (5) generator interconnections, and ( 6) gas service requests. If approved, the proposed fees will become effective on or after July 1, 2026, and will remain effective until revised by a future Commission action. This action constitutes the Approval Action for the Project 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: The San Francisco Public Utilities Commission (SFPUC) charges miscellaneous fees for services that are incurred or requested by an individual customer and not shared by the general Water, Sewer, or Power system. These miscellaneous fees are not subject to the legal requirements of Proposition 218, which pertains to taxes and property related fees. Some of these fees are subject to cost recovery requirements under the San Francisco City Charter and State law. Others are penalties or fees for voluntary service s, which are not subject to cost recovery requirements. Unless otherwise specified in the relevant authorizing resolutions , these miscellaneous fees are typically automatically adjusted each fiscal year by the Consumer Price Index (CPI) issued by the City Controller’s Office.
The Commission adopted the current schedule of
miscellaneous fees for the Power Enterprise on April 23, 2024 , by Resolution No. 24-0102. The existing Power miscellaneous Agenda Title: Adopt New Miscellaneous Fees Related to the Power Enterprise Commission Meeting Date: May 12, 2026
fees primarily pertain to account and billing services and temporary service installation and removal. Historically, the services of Hetch Hetchy Power (HHP) related to reviews, inspections, and coordination for streetlights, electrical service, and infrastructure use. Often these services were provided to customers free of charge. Staff propose adopting new
miscellaneous fees to promote fairness by ensuring that the costs of specialized services are borne by the applicants who request them , rather than being distributed across the entire rate base. The proposed fees pertain to the following services related to the San Francisco Public Utilities Commission’s provision of electric service:
• Streetlighting
• Service connections
• Rules & regulations variance requests
• Municipal pole use
• Generator interconnections
• Gas service requests
The SFPUC is dedicated to developing rates and charges that support revenue sufficiency, customer equity, environmental sustainability, affordability, predictability, and simplicity, as detailed in the SFPUC Ratepayer Assurance Policy dated September 12, 2017. The proposed miscellaneous fees set forth below were developed based on these principles.
Most of the proposed charges are based on the administrative cost to deliver each service, as determined by the hourly staff rate (including salaries, benefits, and overhead) multiplied by the time required to provide the service, plus any applicable material costs. See Attachment 1 for the full list of proposed miscellaneous fees. A ttachment 2, the Power Miscellaneous Fees Technical Memo, shows further details regarding each charge’s cost recovery calculations.
Schedule M-1: Miscellaneous Power Charges
Rules & Regulations Variance Fee
When an applicant applying for services of Hetch Hetchy Power proposes to deviate from SFPUC’s Rules and
Regulations Governing Electric Service or requests variances from other applicable rules and regulations or service
guidelines, staff must review the application and determine which rules, regulations, and standards are affected before approving or denying the request. The proposed variance review fee covers the cost for staff to process the application and route the application to appropriate project te ams, coordinate with applicants, conduct pre -application meetings, Agenda Title: Adopt New Miscellaneous Fees Related to the Power Enterprise Commission Meeting Date: May 12, 2026
review the plans, provide technical assistance, and perform quality control on the submitted materials.
Table 1: Fiscal Year 2026-27
Rules & Regulations Variance Fee
Service
Proposed
FY 2026-27 Fee
Effective July 1, 2026
Rules & Regulations
Variance Fee $5,030
This fee does not incorporate any costs that may be incurred by SFPUC stakeholder(s) or other City department(s) involved in the review, evaluation, processing, and approval of the request, which may include but are not limited to engineering, operations, finance, regulatory, environmental, legal, and administrative.
The adoption of this Resolution will instate the Rules & Regulations Variance Fee on July 1, 2026, and all other pre- existing fees from the M -1 schedule will continue to be charged.
Schedule M-3: Streetlight Fees
While the proposed fees pertaining to streetlights will be applicable to all customers requesting streetlighting services, the fees are expected to be predominantly assessed to
streetlight improvements for
new development or
redevelopment projects. Customers may pay a single fee or a set of applicable streetlighting fees depending on the size and requirements of the project. These fees will cover the costs to SFPUC for applications review, site investigations, lighting analyses, final inspections, and shield requests.
Streetlight Application Fee
The Streetlight Application Fee is assessed when a customer initially applies for streetlight installation. The fee is set to partially cover the cost of administrative processing and engineering review required to confirm that the streetlight plan complies with all code requirements.
Table 2: Fiscal Year 2026-27
Streetlight Application Fee
Service Proposed FY 2026-27 Fee
Effective July 1, 2026
Streetlight Application Fee $611
Agenda Title: Adopt New Miscellaneous Fees Related to the Power Enterprise Commission Meeting Date: May 12, 2026
Streetlight Site Investigation Fee
The Streetlight Site Investigation Fee will be charged to a) applicants who request a site visit from SFPUC for a review of their proposed streetlights, b) individuals who may not have submitted a streetlight application yet but would like to request a site visit from SFPUC to help identify the location of their proposed streetlights, and c) individuals filing a complaint regarding a streetlight -related issue that requires staff to conduct a site investigation. This fee is assessed only when an applicant specifically requests streetlight site investigation service from SFPUC and is not charged if the SFPUC
independently elects to visit a streetlight site.
The fee recovers the cost of administrative processing, coordination with customers, and on-site inspection.
Table 3: Fiscal Year 2026-27
Streetlight Site Investigation Fee
Service Proposed FY 2026-27 Fee
Effective July 1, 2026
Streetlight Site Investigation
Fee $1,794
Streetlight Photometrics Review Fee
Once a customer’s initial application for streetlight installation is approved, the customer must submit the proposed streetlight plan to SFPUC staff for photometric review to ensure the lighting design meets SFPUC’s Streetlight Standards and Requirements. S taff recommends tiered fees based on the project size and need for additional review of the application, with
separate fees for projects categorized into small (<500 linear feet), medium (500- 25,000 linear feet), and large (>25,000 linear feet) , measured by street frontage area. The assessment of the initial submittal fee is for the administrative processing and initial engineering review of the streetlight plan.
The subsequent fee will be assessed for only the
subset of
applicants where additional onsite review is needed.
Agenda Title: Adopt New Miscellaneous Fees Related to the Power Enterprise Commission Meeting Date: May 12, 2026
Table 4: Fiscal Year 2026-27
Streetlight Photometrics Review Fee
Project Size
Initial
Submittal
Proposed FY
2026-27 Fee
Effective July 1,
2026
Subsequent
Review
Proposed FY
2026-27 Fee
Effective July 1,
2026
Small Project
(<500 linear feet) $3,111 $2,250
Medium Project
(500 – 25,000 linear
feet)
$14,215 $5,626
Large Project
(>25,000 linear feet) $14,695 $5,626
Installed Streetlight Inspection Fee
SFPUC is required to conduct final inspection of installed streetlights at the end of design review , prior to acceptance of assets. Staff propos es to create the Installed Streetlight Inspection fee to cover the cost s of scheduling, coordinating , and performing fie ld inspections to ensure the installed assets meet SFPUC standards and requirements. Staff recommends a tiered fee based on the project size, where fees will be charged for projects categorized into small (<500 linear feet), medium (500- 25,000 linear feet), and large (25,000- 50,000 linear feet), measured by street frontage area.
Table 5: Fiscal Year 2026-27
Installed Streetlight Inspection Fee
Project Size Proposed FY 2026-27 Fee
Effective July 1, 2026
Small Project
(<500 linear feet) $2,842
Medium Project
(500 – 25,000 linear feet) $6,188
Large Project
(>25,000 linear feet) $12,590
Streetlight Shield Fee
The Streetlight Shield fee will be assessed to c ustomers who request SFPUC to install light shields on existing SFPUC or PG&E streetlight pole s to prevent light from shining into t heir homes or businesses. The f ee covers the labor and material costs incurred by SFPUC for installing light shields. PG&E charges SFPUC for the cost of light shields when installing them on PG&E poles; these additional costs are reflected in Agenda Title: Adopt New Miscellaneous Fees Related to the Power Enterprise Commission Meeting Date: May 12, 2026
the higher charge for shield requests on PG&E poles.
Table 6: Fiscal Year 2026-27
Streetlight Shield Fee
Service
Proposed
FY 2026-27 Fee
Effective July 1, 2026
Shield Request, SFPUC
Poles $3,317
Shield Request, PG&E
Poles $6,357
Municipal Pole Use Fee (Non-Banner)
SFPUC staff proposes implementing a two- tiered fee for non- city entities (e.g. community groups, business districts, neighborhood organizations) that request usage of SFPUC owned streetlight poles for “Non- Banner” purposes. For example, a community group may request mounting string
lights, baskets or other décor onto SFPUC’s streetlight poles.
The fee structure includes a one- time initial Application fee, which also covers the approval of uses for one pole, and a Licensing fee for the review and approval for each additional pole. The pole use license will be valid for one year with the option to renew it for up to five years , and the fee would be charged annually.
Table 7: Fiscal Year 2026-27
Municipal Pole Use Fee (Non-Banner)
Fee Component Proposed FY 2026-27 Fee
Effective July 1, 2026
Application Fee $1,352
Licensing Fee per
Additional Pole $180
The fee will not apply to requests for mounting banners on streetlight poles (“Banner” purposes), which is under the authority of the Department of Public Works. Similarly, this fee will not be applicable to pole access for deploying Distributed Antenna System (DAS) on SFPUC streetlight poles.
Schedule M-4: Service Connection & Interconnection Fees
SFPUC has historically provided Hetch Hetchy Power
customers with new metered electric service connections and customer-requested upgrades, relocations, and removals of existing electric and gas services at no charge. Staff proposes assessing two fees related to electric service connections to recover SFPUC’s costs for application processing, customer engagement, plan review , and project meetings required to Agenda Title: Adopt New Miscellaneous Fees Related to the Power Enterprise Commission Meeting Date: May 12, 2026
intake customer requests. The SFPUC must pay an additional service initiation charge to PG&E for customers connecting to PG&E’s distribution system when the Wholesale Distribution Tariff (WDT) applies.
New, Upgrade, or Removal of Metered Service Fee
This fee is assessed to any customer who applies for a new metered connection for electrical service as a Hetch Hetchy Power customer. This fee will also apply when a customer requests a service upgrade, contract demand increase, or service removal. The flat fee partially recovers costs of processing metered service connections as well as the pass- through interconnection request fee (Wholesale Distribution Tariff, or “WDT”) if connecting to PG&E’s distribution system.
Table 8: Fiscal Year 2026-27
New, Upgrade, or Removal of Metered Service Fee
Service Proposed FY 2026-27 Fee
Effective July 1, 2026
New, Upgrade, or Removal
of Metered Service Fee $3,000
Metered Service Modification Fee
Fee applicable to any Hetch Hetchy Power customer who
requests a modification of an existing metered connection for electrical service. Th e fee will apply to equipment
modifications that do not involve a change in electrical load, such as r elocation, temporary de-energization, and overhead to underground conversions.
Table 9: Fiscal Year 2026-27
Metered Service Modification Fee
Service Proposed FY 2026-27 Fee
Effective July 1, 2026
Metered Service
Modification Fee $2,000
Gas Service Request Fee
PG&E is the primary provider of natural gas to residential, municipal, and commercial customers in San Francisco.
However, SFPUC staff facilitates temporary disconnection and permanent removal of existing gas connections for HHP
municipal customers, acting as intermediary between
customers and PG&E. Staff propose charging an application review fee for gas service requests to cover the costs of processing initial applications from customers, coordinating with customers to prepare and submit applications to P G&E, and coordinating with PG&E to temporarily disconnect or permanently remove gas services. The actual costs of
Agenda Title: Adopt New Miscellaneous Fees Related to the Power Enterprise Commission Meeting Date: May 12, 2026
shutdown or removal of the physical infrastructure for
permanent gas service will be estimated by and payable to PG&E.
Table 10: Fiscal Year 2026-27
Gas Service Request Fee
Service Proposed FY 2026-27 Fee
Effective July 1, 2026
Gas Service Request Fee $933
Generator Interconnection Fee
SFPUC requires any HHP customer who wants to interconnect a customer -owned Generating Facility to the electric grid, to submit an application to SFPUC, in accordance with the Rules & Regulations Governing Electric Service. To recover the cost of evaluating and approving a customer’s application, staff is proposing an application review fee for residential and commercial customers.
With Hetch Hetchy Power’s customer base, most of the
customer-owned renewable generat ion interconnection
applications are for affordable housing or from developers of affordable housing. PG&E may charge customers additional fees for WDT services beyond SFPUC application review fee.
Considering all this, staff propose charging a reduced flat fee of $145 for both residential and commercial customers to help manage cost impacts on customers and to ensure that fees do not discourage the installation of renewabl e energy generation systems.
Table 11: Fiscal Year 2026-27
Generator Interconnection Fee
Service
Proposed FY 2026-27
Fee
Effective July 1, 2026
Renewable Generation
Interconnection Fee $145
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 from May 6, 2026 to May 10, 2026 and posted on the SFPUC website and at the San Francisco Public Library, for a public hearing on May 12, 2026
with possible Commission action on this
date.
Automatic Fee Adjustments
The proposed fees for Schedule M-1, M -3 and M -4 as shown in Attachment 1 shall be increased each fiscal year by the CPI issued by the City Controller’s Office, as noted in the schedules.
Agenda Title: Adopt New Miscellaneous Fees Related to the Power Enterprise Commission Meeting Date: May 12, 2026
Effective Date of Fees
If approved by the Commission, the proposed fees identified in the attached Schedule M -1, M-3, and M -4 would take effect on July 1, 2026, or such later date that the General Manger determines is administratively feasible, but not later than December 31, 2026 , and will remain effective until revised, unless otherwise stated in the attached schedule or rejected by the Board of Supervisors, as provided in Charter section 8B.125.
Environmental Review: On April 28, 2026 , the Planning Department determined the Project to be statutorily exempt from environmental review under the CEQA Guidelines Section 15273 (Rates, Tolls, Fares, and Charges) (Case No. 2026-003624ENV). View the exemption determination.
This action constitutes the Approval Action for the Project for the purposes of the CEQA pursuant to San Francisco Administrative Code Section 31.04(h).
Attachments: 1. Excerpt of New Miscellaneous Fees on Schedule M-1, M-3 and M-4 Related to Electric Service
2. Power Miscellaneous Fees Technical 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 & County of San Francisco, Alameda, Stanislaus, and Tuolumne counties at rates set by the San Francisco Public Utilities Commission (SFPUC); and
WHEREAS, It is the policy of this Commission that the costs of services related to power service, but not attributable to all customers shall be recovered from the party or parties requesting the service or services; and
WHEREAS, On May 10, 2026, by Resolution No. 16- 0085, t his Commission established the existing schedule of fees and charges for miscellaneous services provided by the Power Enterprise and amended them on April 23, 2024, by Resolution No. 24-0102; and
WHEREAS, SFPUC staff finds that certain specialized services of Hetch Hetchy Power related to reviews, inspections, and coordination for streetlights, electrical service, and infrastructure use have been previously provided to customers free of charge; and
WHEREAS, SFPUC staff recommends adopting new miscellaneous fees to recover the costs of providing specialized services to ensure equity and fairness in cost recovery; and
WHEREAS, Pursuant to Charter Section 16.112, a Notice of Public Hearing on the proposal to adopt revised miscellaneous fees for the Water Enterprise was published in the official newspaper from May 6, 2026 to May 10, 2026 and posted on the SFPUC website and at the San Francisco Public Library, for a public hearing on May 12, 2026; and
WHEREAS, Pursuant to the public hearing notice, a public hearing was held on May 12, 2026, where members of the public were given an opportunity to express their views on the new miscellaneous fees and charges; and
WHEREAS, On April 28, 2026, the Planning Department determined the Project to be statutorily exempt from environmental review under the California Environmental Quality Act Guidelines Section 15273 (Rates, Tolls, Fares, and Charges) (Case No. 2026-003624ENV); and
WHEREAS, This Commission hereby finds that adoption of this resolution will establish rates for the purpose of meeting operating expenses, including employee
wage rates and fringe benefits; purchasing or leasing supplies, equipment, or materials; and obtaining funds for capital projects , necessary to maintain service within existing service areas; now, therefore, be it,
RESOLVED, The Commission hereby approves, adopts, and ratifies the schedules of fees and charges attached to this Resolution; and be it,
FURTHER RESOLVED, The attached fees shall be effective on July 1, 2026, or such later date that the General Manager determines is administratively feasible, but not later than December 31, 2026, and shall remain in effect until repealed, modified, or superseded; and be it,
FURTHER RESOLVED, The Commission authorizes the General Manager to approve changes to these schedules that the General Manager determines, in consultation with the City Attorney, are in the best interest of the City, are necessary or advisable to effectuate the purposes and intent of this resolution, and are in compliance with all applicable laws, including the San Francisco Charter; and be it,
FURTHER RESOLVED, The attached fees shall be automatically adjusted on July 1 of each subsequent year in accordance with the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco during each fiscal year.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of May 12, 2026.
__________________________________
Director of Commission Affairs
San Francisco Public Utilities Commission
ATTACHMENT 1
NEW MISCELLANEOUS FEES ON SCHEDULE M-1, M-3, M-4
RELATED TO POWER ENTERPRISE
EFFECTIVE JULY 1, 2026
Adopted May 12, 2026, by Commission Resolution No. _________
SCHEDULE M-1: MISCELLANEOUS POWER CHARGES
Rules & Regulations Variance Fee $5,030
Fee charged for reviewing and approving applications to deviate from SFPUC’s Rules and Regulations Governing Electric Service, and other applicable Rules and Regulations or Service Guidelines.
The Rules & Regulations Variance Fee shall be adjusted on July 1 of each year by the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco.
SCHEDULE M-3: STREETLIGHT FEES
Streetlight Application Fee $611
Applicable to any customer who submits a streetlight installation application that requires review of the streetlight information to confirm compliance with code requirements.
Streetlight Site Investigation Fee $1,794
Fee charged to applicants who request a site visit to review the location of existing or proposed streetlights.
Streetlight Photometrics Review Fee
Assessed for review of streetlight plans to ensure the lighting design meets SFPUC’s Streetlight Standards and Requirements. Fee is charged based on the project size, measured by street frontage area.
The assessment of the Initial Submittal Fee is for the initial review of the photometrics plan. The Subsequent Review Fee is assessed if any additional on-site reviews are needed.
Project Size Initial Submittal
FY 2026-27
Subsequent Review
FY 2026-27
Small Project
(<500 linear feet) $3,111 $2,250
Medium Project
(500 – 25,000 linear feet) $14,215 $5,626
Large Project
(>25,000 linear feet) $14,695 $5,626
Installed Streetlight Inspection Fee
Charged for final inspection of installed streetlights at the end of design review prior to acceptance of assets by SFPUC. Fee is assessed based on the project size, measured by street frontage area.
Project Size FY 2026-27
Small Project
(<500 linear feet) $2,842
Medium Project
(500 – 25,000 linear feet) $6,188
Large Project
(>25,000 linear feet) $12,590
Streetlight Shield Fee
Fee assessed to customers who request to install light shields on existing SFPUC or PG&E streetlight poles to prevent light from shining into homes or businesses.
Service FY 2026-27
Shield Request, SFPUC Poles $3,317
Shield Request, PG&E Poles $6,357
Municipal Pole Use Fee (Non-Banner)
Charged to non-City entities that requests to utilize SFPUC streetlight poles for non-banner purposes. The fee includes a one-time initial Application fee, which includes approved uses of one pole, and a Licensing fee for each additional pole, to be paid annually.
Fee Component FY 2026-27
Application Fee $1,352
Licensing Fee per Additional Pole $180
This fee does not apply to requests for mounting banners on SFPUC streetlight poles, which is under the authority of the Department of Public Works (DPW) or for applications for deploying Distributed Antenna System (DAS) on SFPUC streetlight poles.
The fees in Schedule M-3 shall be adjusted on July 1 of each year by the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco.
SCHEDULE M-4: ELECTRIC & GAS SERVICE FEES
New, Upgrade or Removal of Metered Service Fee $3,000
Applicable to Hetch Hetchy Power customers requesting a new metered connection, service upgrade, contract demand increase, or service removal.
Metered Service Modification Fee $2,000
Charged to any Hetch Hetchy Power customer who requests a modification of an existing metered electrical service connection that does not involve a change in electrical load.
Generator Interconnection Fee $145
Application fee charged to customers who request to interconnect a customer-owned generating facility to the electric grid as a Hetch Hetchy Power customer. Fee will be applicable to residential customers and commercial customers.
Gas Service Request Fee $933
Applicable to Hetch Hetchy Power municipal customers who request temporary shutdown or permanent removal of existing gas service connections.
The fees in Schedule M-4 shall be adjusted on July 1 of each year by the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco.
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: April 13, 2026
TO: Nancy Hom
Chief Financial Officer
FROM: Matthew Freiberg
Rates Manager
SUBJECT: Power Miscellaneous Fees Technical Memo
Background
The San Francisco Public Utilities Commission (SFPUC) charges miscellaneous fees for special services for individual customers that are not part of the standard services provided by the Water, Wastewater, or Power enterprises, or when costs are incurred for providing services that benefit only specific customers rather than the entire rate base. Instead of embedding the costs of these services in retail utility rates, the actual costs of providing the services are recovered through miscellaneous fees. Utilizing miscellaneous fees is crucial to ensuring fairness and equity across customer classes by collecting these specific cost burdens from various fees, reducing the total burden on retail rates.
SFPUC, in line with the Ratepayer Assurance Policy, is dedicated to developing rates and charges that support revenue sufficiency, customer equity, environmental sustainability, affordability, predictability, and simplicity. The proposed miscellaneous fees calculated as part of this study were developed based on these principles.
The existing miscellaneous fees for Power Enterprise established by resolution 24-0102 on April 23, 2024, primarily pertain to billing & account services, and temporary service installation & removal. Power enterprise staff have indicated a need for additional miscellaneous fees to recover the costs of providing services that pertain to:
• Streetlighting
• Service Connections
• Rules & Regulations Variance Requests
• Municipal Pole Use
• Generator Interconnections
• Gas Service Requests
Historically, many of the services related to reviews, inspections, and coordination for streetlights, electrical service, and infrastructure use have been provided to customers free of charge. The proposed fees promote fairness by ensuring that only those who request specialized services pay for the associated costs, rather than distributing them across the entire rate base. These fees are consistent with the practices of other electric utilities.
Fee Calculation Methodology
The proposed Power miscellaneous fee structures were developed through a standardized methodology, designed to ensure a transparent accounting of costs to establish fees that enhance equity for customers of SFPUC. The calculations are based on the labor and material costs to deliver each service.
Labor Costs
Labor costs are calculated using the fully burdened labor rates multiplied by the anticipated level of effort for each labor classification performing the work. The fully burdened labor rate is the product of each staff member’s hourly base rate multiplied by the associated Enterprises’ fringe benefits multiplier and overhead allocation rate.
𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝐶𝐶𝐿𝐿𝐶𝐶𝐶𝐶 = 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝐿𝐿𝐹𝐹𝐿𝐿𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 ℎ𝐿𝐿𝐹𝐹𝐿𝐿𝐹𝐹𝐹𝐹 𝐿𝐿𝐿𝐿𝐶𝐶𝑏𝑏 × 𝐸𝐸𝐶𝐶𝐶𝐶𝐸𝐸𝐸𝐸𝐿𝐿𝐶𝐶𝑏𝑏𝑏𝑏 𝐶𝐶𝐶𝐶𝐿𝐿𝑠𝑠𝑠𝑠 𝐶𝐶𝐸𝐸𝐸𝐸𝑏𝑏 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝐿𝐿𝐹𝐹𝐿𝐿𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 ℎ𝐿𝐿𝐹𝐹𝐿𝐿𝐹𝐹𝐹𝐹 𝐿𝐿𝐿𝐿𝐶𝐶𝑏𝑏
= 𝐻𝐻𝐿𝐿𝐹𝐹𝐿𝐿𝐹𝐹𝐹𝐹 𝑅𝑅𝐿𝐿𝐶𝐶𝑏𝑏 × 𝐹𝐹𝐿𝐿𝐸𝐸𝑏𝑏𝐹𝐹𝑏𝑏 𝐵𝐵𝑏𝑏𝑏𝑏𝑏𝑏𝑠𝑠𝐸𝐸𝐶𝐶𝐶𝐶 𝑀𝑀𝐹𝐹𝐹𝐹𝐶𝐶𝐸𝐸𝑀𝑀𝐹𝐹𝐸𝐸𝑏𝑏𝐿𝐿 × 𝑂𝑂𝑂𝑂𝑏𝑏𝐿𝐿ℎ𝑏𝑏𝐿𝐿𝑏𝑏 𝐴𝐴𝐹𝐹𝐹𝐹𝐿𝐿𝐴𝐴𝐿𝐿𝐶𝐶𝐸𝐸𝐿𝐿𝑏𝑏 𝑅𝑅𝐿𝐿𝐶𝐶𝑏𝑏
The fringe benefits multiplier, which recovers costs related to employee benefits, was calculated using the FYE 2027 and FYE 2028 SFPUC Biennial Operating Budget, as adopted by the Commission on February 10, 2026. The Enterprises’ overhead allocation rate recovers costs of indirect services provided by the SFPUC Support Bureaus. The overhead allocation rates were determined in the SFPUC Indirect Cost Study, completed in Fall 2023
1. The cost allocation rate and fringe benefits rates used by each Enterprise are summarized in Table 1.
1 San Francisco Public Utilities Commission, Overhead Cost Allocation Technical Memo, SFPUC Overhead Cost Allocation Technical Memo 1.pdf
Table 1: FYE 2027 SFPUC Overhead Allocation Rate and Fringe Enterprise Overhead Allocation Rate Fringe Benefits Rate Water 104.7% 37.2%
Sewer 97.9% 37.3%
Hetch Hetchy Power 168.2% 37.5%
The staff time assigned to each task is based on the average amount of time to perform the requested service. The total labor cost for each task required to perform the specific service is then calculated by multiplying the calculated fully burdened hourly rate by the estimated staff time. This process is repeated for each task and then accumulated for each staff member required for the service.
Additional Costs
Beyond labor costs, additional direct costs associated with the service, such as materials or equipment, are defined and added into the total cost of service.
Power Miscellaneous Fees Calculations
Power enterprise staff propose to implement the following miscellaneous fees to meet the needs and requests of customers for services related to streetlighting, electric service connections, municipal pole use, generator interconnection, and gas service applications. Descriptions of the proposed fees and the basis of their calculation are outlined below. In all instances, external considerations, such as City-wide climate goals and/or comparisons to fees charged by other utilities for similar services were evaluated. For some services, staff are proposing fees at levels lower than the full cost of delivering the service to minimize customer’s cost burden, support agency policy priorities, and benchmarking fees to comparable levels charged by other utilities.
Streetlighting Fees
The proposed fees for streetlighting will be applicable to all customers requesting streetlighting services; however, they are expected to be predominantly assessed to streetlight improvements for new development or redevelopment projects. Customers may pay just one fee or all the streetlighting fees, depending on the complexity and requirements of their project; the specific details on when each fee is assessed are discussed below. When a customer submits an application for new streetlight installation, Hetch Hetchy Power (HHP) staff must review the application to determine if the request meets SFPUC’s Streetlight Standards and Requirements, incurring the Streetlight Application Fee. If the streetlight installation request is not approved after the application review, customer will not incur any further fees. If SFPUC approves the request for new streetlight installation, additional fees, including the Streetlight Photometrics Initial Submittal Review Fee and Installed Streetlight Inspection Fee, will become applicable. Streetlight site investigation is a standalone service that the customers may request. Streetlight Photometrics Subsequent Review Fee will be
applicable only if SFPUC needs to perform a field review. Table 2 offers a summary of the fees and the total amount a development/redevelopment project could pay if all the fees were assessed. The following sections provide details of how these fees were developed.
Table 2: Summary of Streetlighting Fees
Fee Name Small
Project
Medium
Project
Large
Project
Streetlight Application Fee $611 $611 $611
Streetlight Site
Investigation Fee $1,794 $1,794 $1,794
Streetlight Photometrics
Initial Submittal Review
Fee
$3,111 $14,215 $14,695
Streetlight Photometrics
Subsequent Review Fee $2,250 $5,626 $5,626
Installed Streetlight
Inspection Fee $2,842 $6,188 $12,590
Maximum Total
Streetlighting Fee $10,608 $28,434 $35,316
Streetlight Application Fee
When customers submit a streetlight installation application, HHP staff must review the streetlight information in the application to confirm that it meets SFPUC’s Streetlight Standards and Requirements. The proposed fee will partially recover the labor cost incurred by HHP for an Engineer to conduct initial application review, an Associate Engineer to perform the detailed plan review, and a Utility Analyst to map/record the project location (Table 3). Staff propose to set the Streetlight Application Fee at 50% of cost of service. SFPUC views this as a cost sharing approach for building out new streetlights, recognizing that the surrounding communities directly benefit from the improved lighting.
Table 3: FY 2027 Streetlight Application Fee Calculations Labor
Class
Title
FYE 2027
Hourly
Rate
Estimate
d Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total
Cost of
Service
Engineer $104.54 1.00 $104.54 $39.19 $175.84 $0.00 $319.56 Utility
Analyst $50.86 4.00 $203.42 $76.26 $342.16 $0.00 $621.84 Associate
Engineer $92.02 1.00 $92.02 $34.50 $154.78 $0.00 $281.29 Totals $1,222.69
Proposed Fee (50% of Cost of Service) $611.00
Streetlight Site Investigation Fee
Streetlight Site Investigation fee may be charged to the following customers. i. Building permit applicants who request SFPUC to perform a site visit for a review of their proposed streetlights
ii. Customers who may not have submitted a permit application yet but want to request a site visit from SFPUC to help identify the location of their proposed streetlights
iii. Those filing a complaint if there is a streetlight-related issue requiring staff to do a site investigation.
This fee is collected only when an applicant specifically requests for streetlight site investigation service from SFPUC. If staff determines through application review that an additional investigation or field assessment is necessary to verify conditions or gather more information, the cost of that investigation will be covered by SFPUC.
The total cost incurred by SFPUC for site investigation include an Engineer’s labor time to process the request and coordinate site investigation with the project team, a Manager III’s time to assign the field crew and schedule the field work, and Senior Construction Inspector’s time to perform the field work (Table 4). This fee charged per site visit may apply to businesses and residents but is mostly requested by and charged to city departments.
Table 4: FY 2027 Streetlight Site Investigation Fee Calculations Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total
Cost of
Service
Engineer $104.54 1.50 $156.81 $58.78 $263.75 $0.00 $479.35 Senior
Construction
Inspector
$82.34 4.00 $329.37 $123.47 $554.00 $0.00 $1,006.84
Manager III $100.76 1.00 $100.76 $37.77 $169.49 $0.00 $308.02 Totals $1,794.20
Proposed Fee $1,794.00
Streetlight Photometrics Review Fee
If a customer’s streetlight installation request is approved by SFPUC, customer must submit the proposed streetlighting plan for a photometric review to the HHP staff to ensure the lighting design meet SFPUC’s Streetlight Standards and Requirements. To better recover the costs of service, staff recommends a tiered fee based on the project size and need for additional review of the application where separate initial and subsequent fees will be charged for projects categorized into small (<500 linear feet), medium (500-25,000 linear feet), and large (>25,000 linear feet), measured by street frontage area (Table 5, Table 6, Table 7).
The initial submittal fee that is mandatory will be charged to partially recover an Engineering Associate II’s average time of 2.5 hours for initial intake and review of application, coordination with customers, recordation of maintenance agreements, and project tracking as well as an Associate Engineer’s 8 hours for plan review, technical assistance, and QA/QC. The initial fee also incorporates an Engineer’s time spent for preapplication meetings, plan review, technical assistance, and QA/QC. The subsequent review fee may be charged to a subset of applicants if the streetlighting plan requires additional onsite review from SFPUC staff.
Table 5: FY 2027 Streetlight Photometrics Small Project Review Fees Calculations Labor or
Material
Cost
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total
Cost of
Service
Initial Submittal Fee Calculation
Engineer $104.54 1.00 $104.54 $39.19 $175.84 $0.00 $319.56 Associate
Engineer $92.02 8.00 $736.16 $275.97 $1,238.22 $0.00 $2,250.35 Engineering
Associate II $70.81 2.50 $177.02 $66.36 $297.75 $0.00 $541.13 Totals $3,111.05
Proposed Initial Submittal Fee $3,111.00
Subsequent Review Fee Calculation
Associate
Engineer $92.02 8.00 $736.16 $275.97 $1,238.22 $0.00 $2,250.35 Totals $2,250.35
Proposed Subsequent Review Fee $2,250.00
Table 6: FY 2027 Streetlight Photometrics Medium Project Review Fees Calculations Labor or
Material
Cost
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total Cost
of Service
Initial Submittal Fee Calculation
Engineer $104.54 2.50 $261.35 $97.97 $439.59 $0.00 $798.91 Associate
Engineer $92.02 40.00 $3,680.80 $1,379.84 $6,191.11 $0.00 $11,251.75 Engineering
Associate II $70.81 10.00 $708.09 $265.44 $1,191.00 $0.00 $2,164.53 Totals $14,215.19
Proposed Initial Review Fee (50% of Cost of Service) $14,215.00 Subsequent Review Fee Calculation
Associate
Engineer $92.02 20.00 $1,840.40 $689.92 $3,095.56 $0.00 $5,625.88 Totals $5,625.88
Proposed Subsequent Review Fee (50% of Cost of Service) $5,626.00
Table 7: FY 2027 Streetlight Photometrics Large Project Review Fees Calculations Labor or
Material
Cost
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total Cost
of Service
Initial Submittal Fee Calculation
Engineer $104.54 4.00 $418.16 $156.76 $703.34 $0.00 $1,278.25 Associate
Engineer $92.02 40.00 $3,680.80 $1,379.84 $6,191.11 $0.00 $11,251.75 Engineering
Associate II $70.81 10.00 $708.09 $265.44 $1,191.00 $0.00 $2,164.53 Totals $14,694.54
Proposed Initial Review Fee $14,695.00
Subsequent Review Fee Calculation
Associate
Engineer $92.02 20.00 $1,840.40 $689.92 $3,095.56 $0.00 $5,625.88 Totals $5,625.88
Proposed Subsequent Review Fee $5,626.00
Installed Streetlight Inspection Fee
SFPUC is required to conduct final inspection of the installed assets at the end of the design review prior to acceptance of assets by SFPUC. Installed Streetlight Inspection Review Fee is proposed to recover the cost for field inspection that includes average time for an Engineer to assign field crew, an Associate Engineer to schedule field work with the project team, and a Senior Construction Inspector to perform field work to ensure the installed assets have met SFPUC standards and requirements. Staff is proposing a tiered fee based on the project size where fees will be charged for projects categorized into small (<500 linear feet), medium (500-25,000 linear feet), and large (25,000 -50,000 linear feet), measured by street frontage area (Table 8, Table 9, Table 10).
Table 8: FY 2027 Installed Streetlight Inspection Fee Calculations for Small Projects Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total
Cost of
Service
Associate
Engineer $92.02 2.00 $184.04 $68.99 $309.56 $0.00 $562.59 Senior
Construction
Inspector
$82.34 8.00 $658.74 $246.94 $1,107.99 $0.00 $2,013.67
Manager I $87.03 1.00 $87.03 $32.62 $146.38 $0.00 $266.03 Totals $2,842.28
Proposed Fee $2,842.00
Table 9: FY 2027 Installed Streetlight Inspection Fee Calculations for Medium Projects Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total
Cost of
Service
Associate
Engineer $92.02 4.00 $368.08 $137.98 $619.11 $0.00 $1,125.18 Senior
Construction
Inspector
$82.34 18.00 $1,482.15 $555.62 $2,492.98 $0.00 $4,530.76 Manager I $87.03 2.00 $174.05 $65.25 $292.75 $0.00 $532.05 Totals $6,187.98
Proposed Fee $6,188.00
Table 10: FY 2027 Installed Streetlight Inspection Fee Calculations for Large Projects Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total Cost
of Service
Associate
Engineer $92.02 8.00 $736.16 $275.97 $1,238.22 $0.00 $2,250.35 Senior
Construction
Inspector
$82.34 8.00 $658.74 $246.94 $1,107.99 $0.00 $2,013.67
Engineer $104.54 4.00 $418.16 $156.76 $703.34 $0.00 $1,278.25 Totals $12,590.12
Proposed Fee $12,590.00
Streetlight Shield Fee
HHP customers can request to install a Streetlight Shield on an existing streetlight to prevent light from shining into homes and businesses. Staff is proposing to charge a fee when the customer requests for a front or back light shield to block light on an SFPUC or PG&E streetlight.
SFPUC’s costs for installing light shields on its poles are based on an Associate Engineer’s labor time needed to process requests, an Engineering Associate II’s time to map/record the location of the streetlight, a Manager I ‘s staff time to schedule field visits, and a Communication Line Supervisor’s labor time to perform field work.
Additionally, the fee incorporates the cost of the light shield. Staff proposes a fee of $3,317 for shield request on SFPUC poles (Table 11) and $6,357 for shield request on PG&E poles at full cost of service as PG&E will be charging SFPUC for the cost of the shield and any related labor on their end (Table 12).
Table 11: FY 2027 Streetlight Shield Fee (SFPUC Poles) Calculations Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total Cost
of Service
Associate
Engineer $92.02 2.00 $184.04 $68.99 $309.56 $0.00 $562.59 Engineering
Associate II $70.81 1.00 $70.81 $26.54 $119.10 $0.00 $216.45 Communication
Line Supervisor I $82.03 8.00 $656.24 $246.01 $1,103.80 $0.00 $2,006.06 Manager I $87.03 2.00 $174.05 $65.25 $292.75 $0.00 $532.05 Shield $0.00
Totals $3,317.15
Proposed Fee $3,317.00
Table 12: FY 2027 Streetlight Shield Fee (PG&E Poles) Calculations Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total Cost of
Service
Associate
Engineer $92.02 4.00 $368.08 $137.98 $619.11 $0.00 $1,125.18 Engineering
Associate II $70.81 8.00 $566.47 $212.35 $952.80 $0.00 $1,731.62 PG&E Pass
Through $3,500.00
Totals $6,356.80
Proposed Fee $6,357.00
New, Upgrade or Removal of Metered Service Fee
SFPUC staff propose assessing Metered Service Fee to any customer who applies for a new, upsized, or removal of a meter connection for electrical service. This fee will apply to meters connected to either to SFPUC’s distribution system or to PG&E’s distribution system that requires SFPUC to pay a Wholesale Distribution Tariff (WDT) interconnection request fee to PG&E.
The total cost for SFPUC for providing the service includes labor costs of a Utility Analyst to intake initial application, a Utility Specialist to review initial application and engage with customers, and an Engineer and Associate Engineer to perform initial plan review and attend project meetings to approve the request. Metered service connection costs may also include a pass-through interconnection charge for WDT services if interconnecting to PG&E distribution grid (Table 13). Staff is proposing a flat fee of $3,000 that partially recovers the cost to SFPUC.
Table 13: FY 2027 New, Upgrade or Removal of Metered Service Fee Calculations Labor
Class Title
FYE
2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhea
d Rate
(168.2%)
Other
Costs
Total
Cost of
Service
Engineer $104.54 2.00 $209.08 $78.38 $351.67 $0.00 $639.13 Utility Analyst $50.86 1.00 $50.86 $19.06 $85.54 $0.00 $155.46 Utility Specialist $76.78 6.00 $460.66 $172.69 $774.83 $0.00 $1,408.17 Associate
Engineer $92.02 4.00 $368.08 $137.98 $619.11 $0.00 $1,125.18 Totals $3,328.00
Proposed Fee (Hetchy Distribution System) $3,000.00
Interconnection
Request Fee
(PG&E)
$1,500.00 $1,500.00
Totals $4,827.94
Proposed Fee (PG&E Distribution System) $3,000.00
Metered Service Modification Fee
SFPUC staff propose assessing a Metered Service Modification Fee to any customer who applies for a modification on an existing metered connection for electrical service to SFPUC distribution system or to PG&E distribution system that requires SFPUC to pay a Wholesale Distribution Tariff (WDT) Interconnection Request Fee to PG&E. This fee applies to equipment modifications that do not involve a change in electrical load, such
as Relocation/Change of Existing, Temporary De-energization, and Overhead to Underground Conversions.
The total cost for SFPUC for providing the service include labor costs of a Utility Analyst to intake initial application, a Utility Specialist to review initial application and engage with customers, and an Engineer and Associate Engineer to perform initial plan review and attend project meetings to approve the request. Service modification costs may also include a pass-through interconnection charge for WDT services if interconnecting to PG&E distribution grid(Table 14).
Staff is proposing a flat fee of $2,000 that partially recovers the cost to SFPUC and the service initiation charge of $1,500 payable to PG&E for WDT service.
Table 14: FY 2027 Modification Request Fee Calculations Labor
Class Title
FYE
2027
Hourly
Rate
Estimated
Time (Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total
Cost of
Service
Engineer $104.5
4 1.00 $104.54 $39.19 $175.84 $0.00 $319.56
Utility
Analyst $50.86 1.00 $50.86 $19.06 $85.54 $0.00 $155.46
Utility
Specialist $76.78 3.00 $230.33 $86.34 $387.41 $0.00 $704.09 Associate
Engineer $92.02 2.00 $184.04 $68.99 $309.56 $0.00 $562.59
Interconnec
tion
Request
Fee
(PG&E)
$1,500.00 $1,500.00
Totals $3,241.70
Proposed Fee $2,000.00
Rules & Regulations Variance Review Fee
When an applicant and/or its representative applying for HHP service proposes to deviate from SFPUC’s Rules and Regulations Governing Electric Service or requests for variances from applicable Rules and Regulations or Service Guidelines, Power Enterprise staff must review the Variance Application and approve the request. Staff propose assessing a Variance Application Review Fee to review customer’s request and determine which rules, regulations, and standards are affected by the variance application.
This entry fee is calculated to recover the labor cost of a Utility Specialist to intake and review the application, coordinate with applicants, and route the application to appropriate project team/s as well as the costs of an Engineer and Associate Engineer to conduct pre-application meetings, review the plans, provide technical assistance, and QA/QC the submitted materials (Table 15).
This fee does not incorporate any costs that may be incurred by SFPUC stakeholder(s) involved in the review, evaluation, processing, and approval of the request, which may include the following, but not limited to, engineering, operations, finance, regulatory, environmental, legal, and administrative. The fee also does not include actual costs that may be incurred by other city department(s) involved in the review, evaluation, processing, and approval.
Table 15: FY 2027 Rules & Regulations Variance Application Review Fee Calculations Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total Cost
of Service
Engineer $104.54 4.00 $418.16 $156.76 $703.34 $0.00 $1,278.25 Associate
Engineer $92.02 10.00 $920.20 $344.96 $1,547.78 $0.00 $2,812.94 Utility
Specialist $76.78 4.00 $307.11 $115.13 $516.55 $0.00 $938.78 Total Labor $5,029.98
Proposed Fee $5,030.00
Municipal Pole Use Fee (Non-Banner)
A non-city entity may request to utilize SFPUC owned streetlight poles for “Non-Banner” purposes. The non-city entities eligible for pole use are community groups/business districts/neighborhood organizations who wish to install lighting or other décor on streetlight poles. Staff propose implementing Municipal Pole Use Fee (Non-Banner) for such customers to recover the costs of staff time to review the pole use applications and perform field inspections. It may be noted that this fee does not apply to requests for mounting banners on streetlight poles which is under the authority of Department of Public Works (DPW). Pole use fee is also not applicable to telecommunication providers who use streetlight poles to mount Distributed Antenna Systems (DAS).
Staff is proposing a two-tiered fee structure for pole use that includes an initial application fee and a subsequent license fee per additional pole. The application fee will recover the labor cost of a utility analyst performing initial intake of the applications, an Engineer performing initial review of the applications as well as an Assistant Engineer and Associate Engineer coordinating with customers and performing field inspections while the licensing fee will recover the cost of a Utility Analyst and Associate Engineer to review and approve pole use request of each additional pole. To minimize the cost
impact to the customers, staff propose assessing 50% of the total cost of service for this fee (Table 16). The Municipal Pole Use license will be valid for one year with the option to renew for up to five years and the fee would need to be paid annually.
Table 16: FY 2027 Municipal Pole Use Fee (Non-Banner) Calculations Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total Cost
of Service
Application Fee
Utility
Analyst $50.86 2.00 $101.71 $38.13 $171.08 $0.00 $310.92 Engineer $104.54 1.00 $104.54 $39.19 $175.84 $0.00 $319.56 Associate
Engineer $92.02 4.00 $368.08 $137.98 $619.11 $0.00 $1,125.18 Assistant
Engineer $77.57 4.00 $310.27 $116.31 $521.88 $0.00 $948.46 Total Labor $2,704.12
Proposed Application Fee (50% of Cost of Service) $1,352.00 Licensing Fee
Utility
Analyst $50.86 0.50 $25.43 $9.53 $42.77 $0.00 $77.73
Associate
Engineer $92.02 1.00 $92.02 $34.50 $154.78 $0.00 $281.29 Total Labor $359.02
Proposed Licensing Fee (50% of Cost of Service) $180.00
Generator Interconnection Fee
SFPUC requires any HHP customer who wants to interconnect customer owned self- generating equipment and energy storage devices (this may include photovoltaic solar, battery storage systems, or other technology) to the SFPUC-owned distribution system or WDT service to submit customer-owned generator interconnection application to SFPUC. To recover the cost of evaluating and approving a customer’s application, staff is proposing an application review fee for residential customers and commercial customers. With Hetch Hetchy Power’s customer base, most of the customer owned generator interconnection applications are for affordable housing or from developers of affordable housing. PG&E may charge customers additional fees for WDT services beyond SFPUC application review fee. Considering all this, staff propose charging a reduced flat fee of $145 for both residential and commercial customers to help manage cost impacts and to ensure that fees do not discourage the installation of generators such as solar systems.
The total cost of providing the service for residential customers includes the labor cost of a Utility Analyst to intake and review application and coordinate with customers as well as an Engineer and Associate Engineer to perform engineering review of the application (Table 17). Applications from commercial customers will additionally require field inspection and approval of the installed system by a Transmission Line Worker Supervisor 2 (Table 18).
Table 17: FY 2027 Generator Interconnection Fee – Residential < 10kW Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total Cost
of Service
Engineer $104.54 3.00 $313.62 $117.57 $527.51 $0.00 $958.69 Utility
Specialist $76.78 10.00 $767.76 $287.81 $1,291.38 $0.00 $2,346.96 Associate
Engineer $92.02 13.00 $1,196.26 $448.45 $2,012.11 $0.00 $3,656.82 Total Labor $6,962.47
Proposed Fee $145.00
Table 18: FY 2027 Generator Interconnection Fee – Commercial <1MW Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total Cost
of Service
Engineer $104.54 4.00 $418.16 $156.76 $703.34 $0.00 $1,278.25 Utility
Specialist $76.78 10.00 $767.76 $287.81 $1,291.38 $0.00 $2,346.96 Associate
Engineer $92.02 13.00 $1,196.26 $448.45 $2,012.11 $0.00 $3,656.82 Associate
Engineer $92.02 4.00 $368.08 $137.98 $619.11 $0.00 $1,125.18 Transmission
Line Worker
Supervisor II
$108.38 4.00 $433.52 $162.51 $729.18 $0.00 $1,325.21
Manager III $100.76 4.00 $403.06 $151.10 $677.94 $0.00 $1,232.09 Total Labor $10,964.51
Proposed Fee $145.00
Gas Service Request Fee
PG&E is the primary provider of natural gas to residential, municipal, and commercial customers in San Francisco. However, SFPUC Power Enterprise staff facilitates
permanent gas service removal and temporary disconnection of existing gas connections for HHP municipal customers by coordinating with PG&E. Staff propose charging an application review fee for such gas service requests.
As shown in Table 19, the total cost of providing these services include average time needed for utility analysts from the Customer Engagement and Retail Services teams to intake and review initial customer applications, coordinate with customers to prepare applications to PG&E, submit PG&E applications, and coordinate with PG&E for the removal or temporary shutdown of services. Staff propose assessing applicants the full cost of service of $933 for gas service requests. It may be noted that the actual costs of shutdown or removal of the physical infrastructure for permanent gas service will be estimated by and payable to PG&E.
Table 19: FY 2027 Gas Service Request Fee – Temporary Shutdown and Permanent Removal Calculations
Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.0%)
Overhead
Rate
(168.2%)
Other
Costs
Total
Cost of
Service
Utility Analyst -
Customer
Engagement
$50.86 3.00 $152.57 $57.19 $256.62 $0.00 $466.38
Utility Analyst -
Retail Services $50.86 3.00 $152.57 $57.19 $256.62 $0.00 $466.38 Total Labor $932.75
Proposed Fee $933.00
Miscellaneous Fee Implementation and Collection
Fee Collection via Salesforce
SFPUC’s Information Technology Services (ITS) is collaborating with the San Francisco Treasurer Department (TTX) to select and contract with a payment vendor for SFPUC- wide electronic fee collection capabilities. Power has contracted with a Salesforce software developer to incorporate a connector with the payment vendor to allow automated collection of these fees. Any applicant who submits an application or form that has an associated fee will be prompted to make an online payment via credit card or Automated Clearing House (ACH) at the time of submittal. City Departments are expected to initiate payment via Paymode X from PeopleSoft.
Submittals are automatically routed through an intake review and approval process which involves reconciliation of payments through two individual Chart of Accounts. A Merchant Card processing workflow has been reviewed and approved by Cash Management, Accounting, Customer Service Bureau, and Power Finance and Administration. Any fees incurred by the payment vendor will be absorbed by SFPUC for purposes of encouraging electronic payments. Fees will largely be non-refundable.
Only in rare instances, such as a PG&E retail customer incorrectly submitting an application through Power’s online portal, will fees be refunded.