Board hears SFPUC rate proposal; committee referral ordered for BLA audit after public outcry

The San Francisco Board of Supervisors held a committee-of-the-whole hearing June 13 on proposed retail water and wastewater rates for fiscal years 2024–2026 and the related capacity charges. The San Francisco Public Utilities Commission presented the study behind the proposed increases and the board invited public comment on whether to reject the SFPUC's rate package under the charter.

After presentations from SFPUC staff and a wide public comment period, supervisors directed the Budget and Legislative Analyst (BLA) to perform a management audit of SFPUC rate-setting, contract oversight, and cost controls, and the board referred that audit effort to committee for more detailed review. The hearing on the rates was closed and recorded on the record; board members did not adopt or reject the rate package at the meeting.

Why it matters: SFPUC rates fund a multi-billion-dollar capital program and the agency said roughly 80% of the proposed new revenue will go to capital projects to repair aging water infrastructure, prevent flood damage and modernize wastewater treatment. Supervisors and members of the public raised concerns about outreach, the composition of the rate fairness board, project prioritization, and what a potential credit…