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PUC budget review focuses on water system upgrades, renewable projects and rate impacts
Summary
PUC officials told supervisors the proposed budget is slightly smaller than last year and prioritizes a $4 billion water system improvement program, wastewater master planning, municipal solar projects and efficiency; supervisors pressed for details on rate impacts, audits and workforce program costs.
PUC officials gave the Budget & Finance Committee an overview of the utilities’ budget priorities and fielded supervisors’ questions about water and wastewater rates, audits and workforce program costs.
Tony Irons, deputy general manager of the Public Utilities Commission, said the PUC’s request is about $5 million lower than the prior year, roughly 0.5%. He said three enterprises (water, wastewater and power) are being realigned to bring facilities to a “state of good repair,” and highlighted a large water system improvement program and a wastewater master plan. “We are embarked on a very large, water system improvement program… It is on budget. It is on schedule,” Irons said.
Irons described the PUC’s renewable-energy and efficiency priorities, including municipal solar at redevelopment sites and large-scale projects at Hunters Point. He said the PUC is producing a long-term energy plan and is expanding municipal renewable generation and energy-efficiency efforts that overlap with community choice aggregation discussions.
Supervisors pressed for detail on several points. They asked how the court decision referenced as the Bighorn decision (described by staff) affects departmental subsidies and general-fund impacts; Bruce Robertson of the Budget Analyst Office estimated a $3.9 million to $4.0 million effect on the general fund. Supervisors asked for breakdowns of work-order revenue increases tied to charging departments for water and for more detailed invoices and audit documentation; PUC staff agreed to provide department-level line items and to follow up on audit and contracting questions.
Supervisors also questioned workforce-development line items that budgeted roughly $3.4 million for 93 participants (noting per-participant averages that appeared high) and asked the PUC to return with program details. On rates, Scott McDonald said San Francisco’s rates remain in the lower third of peer jurisdictions and will likely stay below average even after planned increases.
What’s next: PUC staff agreed to supply supervisors with breakout data on interdepartmental charges, invoices for projects with low expenditure to date, and additional workforce-program documentation; supervisors flagged a separate GAO hearing on rates and a potential board resolution rejecting proposed water/wastewater rate increases.
