San Francisco Public Utilities Commission

San Francisco Public Utilities Commission
Company type	Government agency
Industry	Public utilities
Founded	1932; 94 years ago
Headquarters	San Francisco, United States
Area served	San Francisco, Alameda County, San Mateo County, Santa Clara County
Products	Water supply, wastewater treatment, electrical power services
Website	sfwater.org

The San Francisco Public Utilities Commission (SFPUC) is a governmental entity serving the City and County of San Francisco by providing water, wastewater, and electrical power services. Additionally, it distributes wholesale water to approximately 1.9 million customers in three neighboring San Francisco Bay Area counties.

Functions

SFPUC manages an intricate network of reservoirs, tunnels, pipelines, and treatment plants, ranking as the third largest municipal utility in California. It supplies potable water sourced from the Hetch Hetchy Reservoir and other locations to around 2.7 million residential, commercial, and industrial users. Roughly one-third of this water is allocated to San Francisco itself, while the remainder is delivered to consumers in Alameda, San Mateo, and Santa Clara counties.

With a history exceeding a century in clean energy production that began with hydroelectric power generation at the O'Shaughnessy Dam, SFPUC’s Power Enterprise comprises two main initiatives: Hetch Hetchy Power and CleanPowerSF.

Hetch Hetchy Power supplies fully greenhouse gas-free electricity to over 6,300 accounts, including municipal facilities such as San Francisco General Hospital, San Francisco International Airport, public schools, libraries, and the Muni transit system. It also provides power to commercial ventures and affordable housing projects.

CleanPowerSF functions as a Community Choice Aggregation program authorized under California legislation.

Combined, these programs meet more than 75% of San Francisco’s electricity requirements. In 2023 alone, they generated savings exceeding $170 million for customers when compared to the for-profit utility PG&E.

The commission also oversees an extensive wastewater infrastructure that collects and processes combined sewage flows within San Francisco before releasing treated water into the Bay and Pacific Ocean. The Southeast Water Pollution Control Plant treats roughly 80% of the city’s wastewater volume; the Oceanside Water Pollution Control Plant handles the remaining 20%. During periods of heavy rainfall, the North Point Wet-Weather Facility provides primary treatment prior to discharge.

Historical origins

During the mid-1800s, much of the watershed in Alameda County was controlled by the Spring Valley Water Company (SVWC), a private monopoly responsible for supplying water to San Francisco.

In 1906, William Bowers Bourn II—major shareholder of SVWC and owner of the Empire Mine—commissioned architect Willis Polk to design a "water temple" where three underground water mains converged from local sources such as Pleasanton’s artesian wells.

Attempts to bring SVWC under municipal ownership date back to 1873 but were initially rejected by voters due to concerns about high expenses. Bourn’s involvement was reportedly driven by both business interests and civic duty.

Prior to completion of the Hetch Hetchy Aqueduct in 1934, approximately six million gallons daily—representing half of San Francisco’s water supply—flowed through the Sunol temple. The city acquired SVWC along with the temple in 1930 for $40 million.

In 1932, San Francisco created the Public Utilities Commission (SFPUC), which originally managed the Hetch Hetchy Project, Municipal Railway, Water Department, and Airport. The Airport was separated into its own commission in 1971, while management of the Municipal Railway transitioned to an independent agency in 1994.

Organization and Governance

The SFPUC is overseen by a Commission consisting of five members, each appointed by the Mayor of San Francisco and subsequently confirmed by the San Francisco Board of Supervisors. Appointment criteria for Commissioners are specified in the San Francisco City Charter, emphasizing particular areas of expertise:

Seat 1 requires proficiency in environmental policy and environmental justice. Seat 2 prioritizes experience in ratepayer or consumer advocacy. Seat 3 demands skills in project finance. Seat 4 calls for knowledge related to water or power systems or public utility administration, while Seat 5 serves as an at-large position.

The Commission convenes twice per month to supervise operations, including decisions on rates, contract endorsements, and policy formulation.

Leadership of the SFPUC is vested in a General Manager, appointed by the Commission, who is supported by Assistant General Managers responsible for six key divisions: Business Services, External Affairs, Infrastructure, Power Enterprise, Water Enterprise, and Wastewater Enterprise.

Issues and Controversies

Former SFPUC General Manager Harlan Kelly stepped down on November 30, 2020, following allegations of bribery involving a contractor. His trial commenced in June 2023 and concluded with a conviction in July 2023 on charges of felony bribery and bank fraud. Kelly received a prison sentence of four years.

Commitment to Environmental Sustainability

In alignment with San Francisco's ambition to achieve a "zero emission city" status by 2030, the SFPUC is actively promoting sustainability efforts across its primary service areas: water, power, and wastewater management.

Water: The "Water System Improvement Program" (WSIP) aims to enhance pipelines, pump stations, and reservoirs.
Power: The SFPUC produces clean energy from sources such as hydroelectricity, solar power, and biogas for municipal and public consumption. Collaborating with Paradox Engineering, it is advancing smart streetlight poles designed to monitor urban service usage while lowering energy consumption.
Sewer: Through the "Sewer System Improvement Program" (SSIP), upgrades are being made to pump stations and wastewater treatment facilities. The agency has allocated more than $50 million toward Low Impact Design (LID) pilot initiatives like bio-retention systems and creek daylighting to reduce stormwater inflow into treatment plants, thereby conserving energy. Additionally, SFPUC addresses sewage flooding issues in San Francisco neighborhoods vulnerable to winter storm runoff and wastewater overflow amid ongoing challenges posed by land subsidence, rising sea levels, and urban expansion.

External links

official website