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
September 7, 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 March 16, 2026, the SFPUC has also completed the following actions:
1. Continued discussions with BAWSCA, San Jose and Santa Clara on planning efforts regarding future needs in consideration for their request for permanent status.
2. 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).
3. Issued FY 2026-27 SFPUC Wholesale Water Rates Notice on March 27, 2026.
4. Approved the FY 2026-27 SFPUC Wholesale Water Rates at the April 28, 2026 Commission meeting.
5. Provided final water supply conditions report to the Wholesale Customers on April 15th (WSA Attachment H, Section 6.1.1).
6. Assisted with coordination of the quarterly meetings of the Water Quality Committee on May 13 and August 20, 2026 (WSA Section 3.08.C).
7. 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).
8. Continued review and response to questions submitted as part of the FY 2024-25 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review. (WSA Section 7.06).
9. Coordinated with BAWSCA on 2025 Urban Water Management Plan common language development and schedule.
10. Continued discussions with BAWSCA on potential amendments to the WSA in advance of 2028 WSA deadlines.
11. Provide forecasts to wholesale customers subject to minimum purchase requirements of expected FY 2025-26 water sales and compliance with minimum purchase requirements.
12. On August 14, issued letters to the four Minimum Purchase Customers and East Palo Alto regarding status of their FY 2025-26 Minimum Annual Purchase Requirements.
13. Conducted a water system tour on June 16-17, 2026 for BAWSCA Board members and wholesale customer contacts.
14. Issued FY 2025-26 revenue confirmation letters to all Wholesale Customers on August 7, 2026 (WSA Section 3.14).
In the near-term, the SFPUC is working to complete the following actions:
1. Conduct a Peninsula CIP tour on September 24, 2026 for BAWSCA Board members and wholesale customer contacts.
2. Conducted a second water system tour on September 29-30, 2026 for BAWSCA Board members and wholesale customer contacts.
3. Hold semiannual Wholesale Operations Meeting and conduct Wholesale Customer Emergency Exercise on October 8, 2026 (WSA Section 8.03).
4. Continue review and response to questions submitted as part of the FY 2023- 24 and FY 2024-25 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review. (WSA Section 7.06).
5. Issue final FY 2025-26 water supply J-table (WSA Section 3.14).
6. Issue FY 2025-26 Wholesale Revenue Requirement (WSA Section 7.03).
7. Continue discussions on potential amendments to the WSA in advance of 2028 WSA deadlines.
8. Hold the SFPUC’s 15th Annual Water Quality & Technology Workshop on November 12, 2026. (WSA Section 3.08.C)
9. Provide BAWSCA the FY 2025-26 Prepayment and Collection Agreement Annual Report (Section 3.06 B of the Prepayment and Collection Agreement).
10. Issue 2026 Annual Water Supply Development Report in December 2026 (WSA Section 4.05).
11. Provide the FY 2027-28 Wholesale water rate range to BAWSCA in December 2026 (not required but related to WSA Section 6.03).
12. Assist with coordination of the quarterly meeting of the Water Quality Committee in February 2027 (WSA Section 3.08.C).
13. Commence audit of FY 2025-26 Wholesale Revenue Requirement (WSA Section 7.03).
14. Continue planning for Annual Wholesale Customer Meeting to be held in February 2027 (WSA Section 8.03).
15. 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