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PUC previews large bond issuances and adopts combined ratepayer assurance policy
Summary
CFO Eric Sandler previewed planned water and wastewater bond transactions (about $400M water, $370M wastewater) and a potential credit facility for Clean Power SF; the commission also adopted a combined Ratepayer Assurance Policy consolidating prior rates and ratepayer assurance policies.
The San Francisco Public Utilities Commission received a fiscal and policy update that included a preview of sizeable financing transactions and the adoption of a restructured ratepayer assurance policy.
CFO and Assistant General Manager Eric Sandler described the PUC's outstanding debt portfolio and near‑term financing plans. He said the commission currently oversees roughly $4.2 billion in outstanding water revenue bonds, about $1.0 billion in wastewater revenue bonds and approximately $40 million in power revenue bonds. Sandler told commissioners the PUC anticipates coming to the commission in October to authorize a water revenue bond issuance expected to be "just under $400 million," and expects a wastewater revenue bond issuance of about $370 million in February. Sandler also said staff expects to seek Board approval in December for a new credit facility to support Clean Power SF contracting activities (the facility could be up to $150 million but is likely to be smaller).
Sandler noted the PUC has been actively managing its portfolio—refunding about $900 million of outstanding water bonds last year and realizing nearly $200 million in debt‑service savings—and that most rate increases in the next four‑year package are driven by debt service. He said staff will continue to coordinate capital timing with the infrastructure group and to present voluminous documentation when the transactions come forward.
On policy, Sandler presented a consolidated Ratepayer Assurance Policy that combines the commission's prior rates policy and the ratepayer assurance policy. The new policy is structured in three sections: (1) prudent use of ratepayer funds, (2) principles for establishing rates and charges (revenue sufficiency, customer equity, environmental sustainability, affordability, predictability, simplicity) and (3) a separate transparency section that emphasizes stakeholder input and reporting mechanisms. The commission moved to adopt the revisions and the combined policy and approved it by unanimous 'aye' votes recorded at the meeting.
Commissioners asked staff to bring detailed transaction documentation back for review prior to final approvals and to ensure transparency and predictability in the rate‑setting process as financing needs are integrated into the upcoming biennial budget and the Prop 218 notice schedule.
