SFPUC keeps rates steady for now, adds temporary drought surcharge and expands customer assistance

SFPUC leadership told supervisors the utility will prioritize responsible management, affordability and capital investments in the next two years while using temporary measures to address a revenue shortfall driven by drought and reduced demand.

General Manager Herrera said the proposed budget includes no retail rate increases for water and wastewater in FY22–23 but noted a temporary drought surcharge of 5 percent for retail customers that began appearing on bills in April; the surcharge automatically sunsets when the drought emergency ends. Herrera also described $11 million in federal and state funding secured to help customers pay past‑due bills and a new customer assistance program that provides a 25 percent discount on water and sewer and a 30 percent discount on Hetch Hetchy power for eligible households.

On capital, SFPUC proposed a one‑year $1.1 billion capital supplemental focused on sewer system improvements, water main repairs, and other projects while the agency reworks a 10‑year capital delivery plan to align affordability and deliverability. The utility said it will not pursue a full two‑year capital plan now in order to recalibrate project delivery timelines.

Why it matters: water, sewer and power rates and programs have direct impacts on households and businesses; the agency’s capital and rate decisions influence long‑term infrastructure resilience and customer bills.

What’s next: supervisors were asked to consider bond authorizations and capital legislation that will return in committee; SFPUC will bring detailed capital proposals and bond items for action in the coming weeks.