Another Utility Shock: SFPUC Rate Hikes Hit 12% a Year
Water and sewer bills climb at five times the inflation rate — and there’s little oversight over the spending behind them.
• • • • • • • • • March 2026 • • • • • • • • •
Bills for San Francisco’s water and sewer are to rise 12.6% and 12.5% per year in fiscal 2027 and 2028, that is, beginning July 1 of this year. These are hikes of five times inflation. In dollar terms, SFPUC (water power sewer) says the typical bill will rise $21 and $23 dollars per month.
Inflation? Try Five Times That.
Rate increases are more concerning than tax increases. Nearly everyone pays water/sewer bills, as all need water. Taxes paid by companies are ultimately borne by consumers who use their services or buy their products, but many of those consumers are not San Franciscans.
If rates continue to rise at the pace above, your bill will double in less than six years.
Why are rates rising so fast? There are many reasons. Ultimately, the San Francisco Public Utility Commission (SFPUC) is spending more and more. It has undertaken large project after large project. It has taken over the emergency fire water system; it provides social programs; it built a large, $100 million-plus community center; it pays high salaries; it hires consultants and service helpers; and more.
SFPUC is building a new facility in San Mateo County and another in Sunol. Largely for its executives and friends, it runs a camp at Mather, near the Hetch Hetchy Reservoir in the Sierra Nevada. Its General Manager is, if not the highest-paid public servant, then one of the highest-paid department heads.”
If SFPUC acquires PG&E, expect even more staffing, contracts, and long-term costs.
SFPUC hopes to take over the assets of PG&E within the city boundaries, including the electrical wires to your home, soon. When it does, that will grow its already sizable workforce. Surely there will be more contracts—for experts, consultants and other technical help.
While there is a so-called Rate Fairness Board, it merely checks the math. SFPUC puts together its budget—what it plans to spend—and rates are set to cover that expenditure. The Board does not question the budget it is given.
Water and sewer bills are usually dwarfed in San Francisco by other bills, such as mortgage or rent. But water/sewer bills are relentless—and growing fast. Complications keep coming and can disguise the increases. For example, recently, homeowners have been separately charged for stormwater.
Beyond Water and Sewer
SFPUC is building a new facility in San Mateo County and another in Sunol. Largely for its executives and friends, it runs a camp at Mather, near the Hetch Hetchy Reservoir in the Sierra Nevada. Its General Manager is, if not the highest-paid public servant, then one of the highest-paid department heads. The boss was once the lawyer who oversaw SFPUC; one may ask: “what did he see in his present job as GM of SFPUC that was so attractive?” For one with no prior utility experience, there must have been something.
Sure as water seeks a lower level, your water and sewer bill rises.
Steve Lawrence is a Westside resident and SF Public Utility Commission stalwart. Feedback: lawrence@westsideobserver.com
March 2026
