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SFPUC adopts 10% across‑the‑board power rate increase for Hetch Hetchy; Clean Power SF rates held flat
Summary
The commission approved a package of power rate updates that include a 10% increase to Hetch Hetchy tariffs, a gradual 3¢ per kWh transition for legacy municipal customers, a new industrial tariff, and a new rental fee for Camp Mather cabin No. 2; Clean Power SF rates will remain unchanged for FY26.
The San Francisco Public Utilities Commission voted unanimously March 26 to adopt updates to its Hetch Hetchy power rates — including a 10% across‑the‑board increase to rate tariffs — and to set a new rental fee for Camp Mather cabin No. 2. Commissioners also heard that Clean Power SF will not receive a rate change for fiscal year 2026.
Matthew Freiburg, rates manager in SFPUC’s financial planning team, presented the proposal and told the commission staff recommendation for Hetch Hetchy customers is a flat 10% increase to all rate tariffs alongside a 3¢ per kilowatt‑hour annual increase used to bring legacy ‘general use’ municipal accounts toward retail rates. Freiburg also presented a proposed new IR‑1T tariff for industrial customers taking service at transmission voltage, noting it affects only a single Stanislaus County customer under historical contract arrangements.
Freiburg said the 10% adjustment is intended to meet revenue requirements identified in the commission’s recently adopted 10‑year financial plan. He told commissioners Hetch Hetchy retail and low‑income rates remain competitive with Pacific Gas and Electric Company (PG&E) under current bill comparison assumptions and that staff validated the revenue projections against billing data.
On Clean Power SF, staff recommended no rate change for FY26. Freiburg said improved power purchase projections reduced the near‑term revenue pressure and allowed the program to meet its cash‑on‑hand target without a rate increase. He explained that Clean Power SF customers remain partially subject to CPUC‑set charges, such as the power charge indifference adjustment (PCIA), which affect comparisons with PG&E.
The commission also approved a staff proposal to formalize a rental fee for Camp Mather cabin No. 2 at $270 per night for the remainder of the fiscal year and to increase the fee by $5 on July 1. Freiburg said those rates were anchored to comparable Camp Mather rates charged by the Recreation and Park Department.
Commissioners discussed wildfire mitigation costs, transmission line maintenance for Hetch Hetchy and competition with PG&E. Freiburg said SFPUC incurs maintenance and brush‑management costs along long transmission lines to reduce wildfire risk and that the agency seeks cost‑competitive contracts and generation opportunities when feasible.
The commission approved the rate package and the Camp Mather fee changes by unanimous recorded vote and staff said they will proceed with the adopted rate changes effective with meter readings beginning on or after July 1, 2025, and the rental fee changes effective May 1, 2025 with an update on July 1, 2026 as described in the staff presentation.
