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Rate Fairness Board presents mixed impacts of proposed water and wastewater rate changes
Summary
The Rate Fairness Board presented recommendations April 28 on proposed SFPUC water, wastewater and private fire service rates, explaining tradeoffs between tiered and uniform rate designs, projected 2010–2014 impacts, and pressures to recover about $5 million annually tied to past tier reductions and a $2.6 million reallocation from private fire service.
At its April 28 meeting the San Francisco Public Utilities Commission received an extensive advisory report from the Rate Fairness Board on proposed revised schedules of water and sewer rates and charges, proposed miscellaneous fees (including private fire service), and the implications for residential, multifamily and nonresidential customers.
Howard Ash, chair of the Rate Fairness Board, summarized the board’s deliberations and said the board supports the staff proposal overall while acknowledging the tradeoffs. The board emphasized the charter goals from Proposition E, including rate sufficiency, conservation and affordability. Ash and staff outlined the primary design choices: maintain tiered (inclining block) rates for single‑family customers, move multifamily wastewater from a uniform to an increasing block structure, and keep uniform rates for nonresidential customers. The board noted phasing out a cross subsidy from nonresidential to residential customers over three to five years and an expected $2.6 million per year reallocation tied to private fire service adjustments.
Staff and board members walked commissioners through illustrative bill impacts for 2010 and 2014. For many single‑family accounts the differences between tiered and uniform rates are modest—often a few dollars a month—although the break point in some scenarios was near five units of consumption. Staff explained a unit is 748 gallons; typical per‑person use in San Francisco is about 60 gallons per day. Commissioners pressed staff on how fixed (meter/connection) charges affect average per‑unit costs; staff noted fixed charges account for roughly 20% of the average bill and explained that amortization of fixed costs affects low‑volume users most.
Several public speakers urged different policy choices: some neighborhood advocates argued tiered rates are unfair to large families and called for uniform rates or exemptions, while conservation advocates urged tiered or additional high tiers to discourage discretionary irrigation and support conservation. Staff said low‑income discounts must be funded from the general fund rather than rates and indicated the Mayor’s proposed budget would include a level of general‑fund support to continue discounts.
No formal rate vote was held at the meeting; the presentation served as staff and advisory board guidance ahead of future rate‑setting actions.
