This meeting addressed critical water supply agreements, wholesale customer relationships, rate adjustments for Clean Power SF, and pipeline safety improvements. The Commission engaged in substantive discussions about balancing ratepayer affordability with infrastructure needs and renewable energy goals.
The meeting opened with acknowledgment of the Muwekma Ohlone Tribe's ancestral lands and the SFPUC's partnership with the tribe. The Commission approved amended minutes from the January 13, 2026 meeting, clarifying that no action was taken during the prior closed session.
The Commission approved consent calendar items 7A, 7B, 7D, and 7E, removing item 7C from consideration. Item 7B included four wastewater and stormwater service contracts totaling approximately $32 million over five years for condition assessment, collection system renewal planning, low-impact design, stormwater policy planning, and organizational development. Commissioner Stacey sought clarification on the broad scope of these as-needed contracts.
Allison Costuma and Steve Ritchie presented a comprehensive overview of the SFPUC's relationship with 26 wholesale customers through the Bay Area Water Supply and Conservation Agency (BAWSUA). Key points included:
Commissioner Stacey raised concerns about the gap between demand and ISGs creating planning uncertainty and potentially disincentivizing alternative water supply development. The contract expires in 2034 with two five-year extension options.
BOSCA CEO Tom Smegal presented the agency's 2025 demand study findings:
Smegal raised concerns about "demand hardening"—the potential inability to achieve additional 20% reductions during droughts as conservation becomes more aggressive. Commissioner Stacey emphasized that this underscores the importance of alternative water supplies for dry-year resilience.
Public commenters Peter Drechmeier and Dave Warner challenged some assumptions, noting historical overestimation of demand projections and questioning evidence for demand hardening.
General Manager Dennis Herrera announced plans for comprehensive presentations later in 2026 on water supply planning scenarios, including:
Commissioners expressed appreciation for this forward-looking analysis.
Deputy CFO Laura Bush presented new rules implementing 2023 state legislation establishing an administrative exhaustion of remedies process for water and sewer rates. The rules require:
The Commission unanimously approved these transparency-enhancing rules.
Matthew Freiberg, Rates Manager, presented a proposal for a mid-year 25% rate decrease for residential and large commercial customers, and 20% for other customer classes, effective March 1, 2026. Key factors:
Drivers:
Bill Impacts:
Future Rate Path:
Commissioners asked about customer retention concerns. Staff noted Clean Power SF maintains a 5% opt-out rate—among the lowest for CCAs—because customers value the broader proposition beyond price, including local and greener power.
The Commission unanimously approved the rate adjustments.
Andrew Bevington, Clean Power SF Customer Solutions Manager, presented a proposal to transition from Net Energy Metering (NEM) 2.0 to a Solar Billing Plan (also called Net Billing Tariff or NEM 3.0) effective August 2026. This item generated extensive discussion and public opposition.
Current System (NEM 2.0):
Proposed Changes:
Scope:
Policy Rationale (Staff):
Public Opposition: The proposal faced significant opposition from solar industry representatives and customers:
116 public comments received, majority opposed
Solar contractors Charles Adams (Albion Power), J.P. Rappaniani (Citro Power), and Janine Cotter (Luminalt) testified that:
Customer Natalie Shuttleworth emphasized rooftop solar reduces distribution needs and urged clear battery incentives before approval
Commissioner Discussion: Commissioner Stacey initially supported the proposal, emphasizing:
President Arce expressed serious concerns:
Staff Response: Michael Himes (Deputy AGM for Power) clarified:
Outcome: President Arce requested the item be pulled for additional work, expressing discomfort voting on contentious policy without adequate review of opposition concerns. General Manager Herrera agreed to pull the item but declined to set a date certain, committing to provide a timeline at the next regularly scheduled meeting. Additional public noticing will occur before the item returns.
Commissioners Jamdar and Thurlow requested details on the forthcoming battery incentive program. Commissioner Stacey requested tracking of solar installation trends following any policy change, noting the Rate Fairness Board made similar recommendations.
Project Manager Jimmy Leung requested approval to increase duration contingency by 208 calendar days for contract HH-1009, San Joaquin Pipeline Valve and Safe Entry Improvements, Phase 3, Tesla Surge Tower with Mountain Cascade Incorporated.
Background:
Issue:
Request:
The Commission unanimously approved the extension.
Francisco DaCosta urged commissioners to conduct specific assessments of water and sewer systems, noting concerns about reservoir standards, excess chlorination, and water spills. He emphasized the need for expert consultants to inform commissioners.
Jean L. described a year-long broken water meter transponder issue costing hundreds of dollars monthly, with SFPUC estimating usage and doubling her bill. She called for adequate staffing and equipment to address widespread meter issues and reasonable payback timelines.
The Commission met in closed session to discuss matters referenced in Item 15. Following closed session, the Commission announced it was recommending approval of the referenced item and voted not to disclose closed session discussion.
The meeting adjourned following closed session announcements.
Thank you. Thank you. Order. And as Ms. Lanier returns, I will call for the roll call. President Arce? Excused. Vice President Leverroni? Here. Commissioner Jamdar? Here. Commissioner Stacey? Here. Commissioner Thurlow? Here. You have a quorum. Thank you. Item to read the next text. Before calling the first item, I'd like to announce that the San Francisco Public Utilities Commission acknowledges that it owns and are stewards of the unceded lands located within the ethno-historic territory of the Muekwa Ohlone tribe and other familial descendants of the historic federally recognized Mission San Jose Verona Band of Alameda County. The SFPUC also recognizes that every citizen residing within the Greater Bay Area has and continues to benefit from the use and occupation of the Muwekma Ohlone Tribes Aboriginal lands since before and after the San Francisco Public Utilities Commission's founding in 1932. It is vitally important that we not only recognize the history of the tribal lands on which we reside, but also we acknowledge and honor the fact that the Mawekma Ohlone people have established a working partnership with the SFPUC and are productive and flourishing members within the many greater San Francisco Bay Area communities today. Item 3, approval of the minutes of January 13, 2026. There was a correction made to item number 17, stating that there was no announcement following closed session. Are there any corrections to the minutes of the January 13, 2026 meeting? Go ahead. Kate? Thank you. Commissioner? Ms. Lanier, I just wanted to clarify, what is the correction on Item 17? That there's no announcement following closed session? I think what we did is we announced that the Commission took no action during closed session. That's what the minutes should read, right? Yes, thank you. Thanks. So with that correction. Okay. Are there any further corrections to the minutes of January 13, 2026? Ms. Lanier, to open to public comment. Remote callers, please raise your hand if you wish to provide comment on this item. Are there any members of the public present who wish to comment? Seeing none, moderator, are there any callers who have their hand raised? Ms. Lanier, there are no callers that wish to be recognized. Thank you.