Committee endorses refunds after SFPUC account errors totaling about $754,140

The committee voted to forward a resolution authorizing payments totaling approximately $754,139.82 to San Francisco Public Utilities Commission (SFPUC) customers and a payment to Alameda County to correct utility user tax errors on electric accounts dating from June 2018 to January 2024.

Nancy Hamm, chief financial officer for SFPUC, explained staff discovered that certain transferred Hetch Hetchy power accounts had been billed and remitted incorrectly. In one example, the Oliver De Silva account at the Sonoma Valley aggregate quarry was charged San Francisco’s utility tax rate of 7.5% instead of the Alameda County rate of 6.5%, and taxes were remitted to San Francisco rather than Alameda County. The refund amount for that account was presented as $101,824.48; a separate customer (Sonal Ag Park) was found to have been charged when it should have been exempt, producing a credit of $339.94. Hamm said the department will revise policies and procedures—examining meter‑to‑billing processes and account setup—to avoid similar errors.

The Budget and Legislative Analyst reported the refunds will be paid by deducting incoming utility user tax revenues this year; the current budget of $110,700,000 did not assume these refunds and the adjustment could affect the general fund. Committee members asked what steps would prevent recurrence; Hamm said staff will document procedures and increase awareness when creating power accounts that cross jurisdictions.

With no public comment, the committee forwarded the resolution to the full Board with a positive recommendation.