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Committee backs increasing SFPUC power‑sales cap and forwarding Yosemite watershed MOA
Summary
The committee advanced two SFPUC items: raising the delegated annual power‑sales revenue cap from $10M to $20M to enable timely market transactions amid high wholesale prices, and forwarding a ~ $40.96M, 4‑year memorandum of agreement with the National Park Service to fund watershed management in Yosemite and meet drinking‑water requirements.
The committee forwarded two Public Utilities Commission items to the full Board with positive recommendations.
Mike Himes, deputy assistant general manager for SFPUC Power, asked the committee to increase an administrative code annual revenue cap for delegated power‑sales authority from $10 million to $20 million through July 1, 2025. Himes said wholesale electricity prices have been higher than expected because of supply constraints and that increasing the cap will give the SFPUC flexibility to act quickly and obtain better value for ratepayers; supervisors asked whether $20M provided sufficient cushion and Himes said it was reasonable for the current fiscal year.
Margaret Hannaford (Hetch Hetchy Water and Power division manager) presented the PUC’s memorandum of agreement (MOA) with Yosemite National Park to fund watershed management in the Tuolumne watershed above Hetch Hetchy Reservoir. The MOA is not to exceed $40,958,727 over a four‑year term and implements long‑standing service agreements (the presentation referenced the 1913 Raker Act and federal requirements under the Safe Drinking Water Act). The BLA recommended approval, noting prior similar agreements and that the agreement is funded by Hetch Hetchy ratepayers.
Both items were moved to the full Board with the committee’s positive recommendation 3–0.
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