SFPUC sells $702 million in water bonds, CFO says ratepayers will see long-term savings

Todd Reistrom, assistant general manager and chief financial officer, told the Public Utilities Commission on May 22 that the SFPUC sold $702,000,000 of water revenue bonds that morning at an average borrowing rate of about 4.27 percent, which staff said will “lock in place as of this morning about a $130,000,000 of savings for the rate payers” that will average roughly $4,000,000 a year over the next 31 years.

Reistrom presented the commission’s third-quarter budget status, saying water use and sales remain below budget (about 2 percent under for wholesale and retail) but that all three enterprises — water, wastewater and power — are projected to end the year with adequate reserves. He said the power enterprise faces about $11,000,000 less in projected fund balances this year because of a dry snowfall year and reduced hydropower generation.

Commissioners asked questions about short-term funding options and commercial paper. Reistrom said short-term commercial paper for terms under 270 days is running about 0.25 to 0.5 percent and that the SFPUC has the ability to use commercial paper: it has maximized authorization to $500,000,000 for water commercial paper and $300,000,000 for wastewater. He said staff will return this summer to seek authorization for another refunding.

The presentation framed the bond sale as a favorable result for ratepayers and part of a broader debt-management strategy; Reistrom thanked the debt manager and deputy CFO for their work. No formal action was required beyond the commission’s receipt of the report.