San Francisco Public Utilities Commission Meeting - April 28, 2026

The San Francisco Public Utilities Commission (SFPUC) held a regular meeting on April 28, 2026, at 9:45 AM. The meeting included a land acknowledgment, approval of the consent calendar, public comments, and deliberation on proposed water, sewer, and power rate increases, as well as contract contingencies. The Commission approved all agenda items.

Consent Calendar

• Items 7A, 7B, and 7C were approved unanimously via a motion by Vice President Leveroni, seconded by Commissioner Thurlow. The items were routine approvals; no objections or comments were raised.

Public Comments & Testimony

• General Public Comment (Item 4):
  • Francisco de Costa alleged that three innocent employees were fired and that city reservoirs are filthy. He stated that he is taking the matter to the media due to the Commission's lack of response.
  • Rev. Ronnie Chisholm criticized the water system, claiming poor drinking water quality (e.g., dark water from faucets) and questioned the use of hundreds of millions of dollars. He called for accountability.
  • Johnny Chanon objected to a bond from 2002 appearing on bills, demanded to know when it would expire, and argued that rate increases should be placed on the ballot, not set by unelected commissioners. He also criticized the stormwater component charge as "ludicrous" for being charged year-round.
  • Eileen Boken (Coalition for San Francisco Neighborhoods) questioned whether the emergency firefighting water system is "dedicated" or "potable," citing an April 14, 2026 agenda item that conflicted with public statements. She called it a "bait and switch."
  • Denise Lewis (California Native Plant Society) urged a hearing to uncover why staff did not adopt the full build-out of the emergency firefighting water system recommended by AECOM. She noted that a 2026 ballot measure includes only $130 million, while full build-out would exceed $3 billion.
  • Peter Dreckmeyer (Policy Director, Yosemite Rivers Alliance) argued that the Commission is not receiving timely water supply planning information, referencing a 2021 workshop that occurred after the Urban Water Management Plan was filed. He stated that the design drought (8.5-year scenario) is outdated and that the long-term vulnerability assessment found no drought as severe in 25,000 model runs.
• Comments on BAWSCA Report (Item 6):
  • A speaker (caller) asserted that water is being doled out in violation of the Raker Act, which primarily intended water for San Francisco municipal use.
  • Peter Dreckmeyer reiterated that the design drought is unrealistic and urged the Commission to use the next month and a half wisely before approving the Urban Water Management Plan.
• Comments on Water & Sewer Rates (Items 8 & 9):
  • Masood Samari expressed concern for small businesses, urging a phased approach and lower annual caps.
  • Denise Lewis warned that exaggerated water needs could justify unnecessary alternative water supply projects.
  • Francisco de Costa argued that customers who conserve should not be penalized and called for transparency on staff salaries.
  • Mary Butterwick (ratepayer) stated that rates may triple in 15 years and that debt service will exceed 50% of costs within 10 years. She urged realistic demand projections.
  • Johnny Chanon repeated opposition to rate-setting by unelected bodies and called for ballot measures.
  • Eileen Boken opposed rate increases based on outdated population projections and drought modeling, presenting a resolution from the Coalition for San Francisco Neighborhoods urging two alternative scenarios using flat population growth and shorter drought durations (6.0 and 7.5 years).
  • Albert Chow (candidate for District 4 supervisor) noted cumulative rate increases from PG&E and Ecology, calling for stretching operating expenses to provide relief.
  • Ted Lowenberg stated that the last hike already doubled his bill and that the stormwater charge is a "free money" scheme since no refund is given in dry months. He accused the Commission of being the "worst enemies" in the fight against inflation.
  • Donald Driscoll (attorney) argued that the hearing procedures under Government Code 53759.1 are inadequate, lacking sworn testimony, cross-examination, and impartial fact-finding. He reserved rights to challenge the rate adoption.
  • Heather Wilson (laundromat owner) detailed how reduced rebates for energy-efficient machines make it impossible to renovate essential laundry services. She noted that her utilities are 21% of revenue and that a nearby laundry closed due to costs exceeding revenue.
  • Rev. Ronnie Chisholm called the system "broken" and urged the Commission to be responsible.
  • Dave Warner (caller) proposed using $24 million from reserves to reduce the combined increase from 12.5% to 10%, plus a 2.6% budget cut.
  • A representative of the Hispanic Chamber of Commerce (caller) stated that the increases will disproportionately impact Latino and minority-owned small businesses, forcing staff cuts or closures.
  • Alex (Bayview resident) argued that the rate structure lacks a gravity credit for lower-elevation parcels, causing them to subsidize pumping costs for higher-income areas.
• Comments on Power Rates (Item 10):
  • Eileen Boken opposed rate increases based on fund balance and outdated population projections, referencing a $200 million West Side substation project and concerns about blended water, saltwater intrusion, and recycled water (toilet-to-tap).
• Comments on Wholesale Water Rates (Item 11):
  • Peter Dreckmeyer noted that projected water sales in the plan are lower than those in the Urban Water Management Plan and questioned the need for the $747 million Pure Water Peninsula project, given that alternative water supply needs are only 92-122 MGD. He urged a workshop on demand and drought modeling.

Discussion Items

• Item 6 – BAWSCA Report: Mr. Smeagel presented the annual report, noting that the BAWSCA region uses 26% less water than in 1986-87 despite a 35% population increase. Residential water use dropped from 79.3 gpcd (2012-13) to 58.9 gpcd. Eight agencies now have residential use below 45 gpcd. The region's reliance on the SFPUC regional water system is projected to decline from 67% to 61% by 2050 as other sources develop. No questions from commissioners.
• Items 8 & 9 – Water and Sewer Rate Proposals:
  • Matthew Freiberg (Rates Manager) presented the two-year rate proposals for water (7% increase each year for FY27 and FY28) and sewer (15% in FY27, 14.5% in FY28). The sewer increase includes a stormwater component phased in over seven years, with a 53.3% increase in FY27 and 43.1% in FY28 for stormwater alone, offset by lower wastewater component increases (10.8% and 10.1%). The average single-family combined bill would rise from $165/month currently to $209/month by FY28. The proposals were developed under 2023 rate study and comply with Proposition 218 and AB 2257 exhaustion of remedies requirements. Outreach included 40 group presentations, 7 in-person application drives (850 attendees), and multilingual ads generating 1.4 million impressions.
  • John Cote (Communications Director) highlighted rebates, grants, and the Customer Assistance Program (CAP) offering 25-40% discounts. Enrollment is ~7,000 accounts; an estimated 35,000 households are eligible. Commissioners Thurlow and Jamdar asked about fund balance durability, CAP sustainability, rate structure, and federal funding. Staff noted that fund balance buffers near-term rates, but large-scale CAP enrollment would require rethinking.
  • After public comment, the Commission voted to overrule objections (27 water protests, 1 sewer protest; majority threshold not met) and adopted the rate schedules effective July 1, 2026.
• Item 10 – Power Rates: Freiberg presented a 6% average increase for Hetch Hetchy Power retail rates (FY27), with cost-of-service adjustments causing variations (cap of 9% for individual tariffs). General Use (subsidized) rates will increase by 3 cents/kWh annually to reach parity with retail. A new Municipal Airport rate was created for SFO to avoid socializing project costs. Green tariff surcharge increased from 8 to 9.5 cents/MWh. Typical residential bill would go from $95 to $102/month, still below PG&E rates ($127). The Commission approved the rates unanimously.
• Item 11 – Wholesale Water Rates: Freiberg proposed a 7.4% increase to $6.23/CCF for FY27, driven by lower wholesale usage projections (3.2% decrease) and increased operating/debt service costs. The balancing account shifted from owing $13.4M to BAWSCA to anticipating a $3.4M owed to SFPUC. The Commission approved the rates unanimously.
• Item 12 – Snow Valley Chloramination Facility: Project Manager Alicia Reinhardt requested a $2 million cost contingency increase and 700 calendar day extension due to an unforeseen operational event during the Hetch Hetchy system shutdown. One treatment plant experienced performance issues, requiring the facility to be brought back online four weeks early, preventing completion of shutdown-related work. The Commission approved the request unanimously.
• Item 13 – Channel Force Main Intertie: Project Manager Carmen Luke requested a $2.8 million cost contingency increase and 243 calendar day extension for additional pipe modifications and dewatering required during the dry weather season of 2025. The Commission approved the request unanimously.

Key Outcomes

• Consent Calendar (Items 7A-7C): Approved unanimously.
• Water Rates (Items 8 & 9): The Commission overruled 27 written objections and 3 oral protests (majority protest threshold not met). A motion to confirm that no objections warranted revising the proposed rates passed unanimously. The revised water rate schedule (7% increase each year for FY27 and FY28) was adopted, effective July 1, 2026.
• Sewer Rates (Items 8 & 9): The Commission overruled 1 written objection (majority protest threshold not met). The revised sewer rate schedule (15% increase for FY27, 14.5% for FY28) was adopted, effective July 1, 2026.
• Power Rates (Item 10): The proposed increase of 6% for Hetch Hetchy Power retail rates was adopted unanimously, effective July 1, 2026.
• Wholesale Water Rates (Item 11): The proposed rate of $6.23/CCF (7.4% increase) was adopted unanimously, effective July 1, 2026.
• Contract Amendment (Item 12): Approved $2 million cost contingency increase and 700 calendar day extension for Snow Valley Chloramination Facility improvements.
• Contract Amendment (Item 13): Approved $2.8 million cost contingency increase and 243 calendar day extension for Channel Force Main Intertie.
• Other Items: Items 14 (communications) and 15 (commissioner-initiated items) were noted with no action. The meeting adjourned at 4:04 PM.