SFPUC reports drought‑related revenue shortfalls but meets reserve targets

San Francisco — At its Sept. 27 meeting the San Francisco Public Utilities Commission reviewed Q4 pre‑audit financials and a biennial budget recap covering fiscal years '17–'18.

Eric Sandler, CFO and Assistant General Manager of Business Services, told commissioners drought conditions reduced revenues: the Water Enterprise declined about $57 million (the largest share from a $43 million drop in wholesale revenues), Wastewater about $11 million and Power about $10 million. Sandler said those reductions were largely offset by one‑time operating savings, a February refunding that lowered debt service and some technical adjustments; overall, he said the enterprises met the commission's reserve and debt‑coverage policy targets.

Commissioners pressed staff on water sales volumes (the memo cited 170.2 million gallons per day) and asked for a forthcoming policy discussion on how to treat any additional revenue generated if consumption exceeds conservation assumptions. Sandler responded staff would prepare proposals and noted Clean Power SF working capital reserves were estimated at about $9.3 million at year end with a target of roughly three months of operating expenses.

Sandler also reviewed the post‑adoption process for the biennial budget (transmission to the Mayor and Controller, capital planning committee review and Board of Supervisors actions). He said technical adjustments were made after adoption to account for stronger than expected Clean Power enrollment and to reclassify some operating items to capital funding; he noted a $12 million increase in mitigation monitoring and $5.9 million in developer contributions added to the capital appropriation for a substation.

No formal budget decisions were made at the meeting; staff said it will bring policy proposals and mid‑cycle adjustments to the commission as needed.