Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Rates topic
No spam. Unsubscribe anytime.
SFPUC adopts FY16 wholesale water rates; proposed $3.75 per unit reflects 28% increase
Summary
The commission approved a FY16 wholesale water revenue requirement that yields a proposed wholesale rate of $3.75 per unit (roughly a 28% increase), driven largely by higher debt service; staff said the revenue requirement to collect is about $243 million for the coming year.
The commission voted to adopt the fiscal 2016 wholesale water revenue requirement and rate schedule at its May 12 meeting.
Interim CFO Charles Pearl explained the proposed revenue requirement — roughly $243 million — and walked commissioners through how a lower delivery volume in the current year raises the needed wholesale rate. "In fiscal 'sixteen, the proposed rate of $3.75 a unit represents a 28% increase from the current rate," Pearl said, adding that increased debt service is the primary driver of the rate change.
Pearl said staff had worked to smooth out projected rate spikes over coming years and that the wholesale customers had been briefed and prefer smoother multi‑year paths. He noted that a discount of $0.37 per unit applies to one wholesale customer that receives untreated water, and that the proposed rate reflects current sales and fixed charge assumptions.
After questions from commissioners about in‑city demand assumptions and revenue impacts — staff acknowledged the retail conservation goal would affect demand assumptions — the commission moved, seconded and approved the rate schedule; the change applies to meter readings on or after July 1, 2015.
