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PUC adopts appeal process to ease tiered water bills for large households
Summary
The San Francisco Public Utilities Commission approved an amendment allowing single-family households with more than five residents to appeal for a larger consumption block under the new tiered water-rate schedule; staff estimated a worst-case fiscal impact of $1 million–$2 million if all eligible accounts apply.
The San Francisco Public Utilities Commission on May 22 approved an amendment to its proposed tiered water-rate schedule that allows single-family households with five or more residents to petition the general manager for an expanded consumption block.
Commissioner Sklar introduced the amendment to address families and multi‑generational households that the commission found were being forced into higher, punitive tiers under the city’s new rate structure. "If you have more than five persons in a living unit ... you can come and appeal to us and make a request to the general manager within 14 days," Sklar said during the meeting.
Assistant General Manager Scott McDonald told commissioners staff had extrapolated household-size data from the CAP program to estimate approximately 8,000–10,000 single‑family accounts could be affected; he gave a preliminary "rough estimate" of a $1 million–$2 million fiscal impact if all eligible households applied and received the expanded allocation. "It would be between $1,000,000 and $2,000,000 if all households petition and receive the expanded block," McDonald said.
The amendment requires applicants to demonstrate household size and to undertake or commit to conservation measures; staff will use a modified CAP application process to verify claims and pledged to respond to appeals within 14 days. Commissioners also added a one‑year review of the program after implementation to allow staff and the commission to evaluate administration and fiscal impacts.
Public commenters offered mixed reactions. Denise LaPointe of West Twin Peaks urged the commission to reject the overall rate increase and asked the Board of Supervisors to delay approval, saying, "We urge you to reject the rate increase." Rent‑board and tenant‑advocacy representatives said the Tier system can penalize families and renters, while builders and owner groups warned of administrative burdens and urged transparency on capacity charges and pass‑through rules.
Commissioners also discussed a nonbinding "sense of the commission" statement drafted by Commissioner Sklar urging the Board of Supervisors and the Rent Control Board to reconsider restrictions on landlords' ability to pass through some water/sewer increases to tenants; that separate recommendation will be vetted with legal counsel and stakeholder input before next meeting.
The commission approved the amendment on a unanimous voice vote. Staff were directed to draft procedures for appeal intake and verification, return with implementation details, and conduct the one‑year review to report back to the commission.
Next steps: staff will return with administrative procedures and a recommended implementation timeline; the commission asked that legal counsel and stakeholders be consulted on the related pass‑through recommendation before it is advanced to the Board of Supervisors or Rent Control Board.
