Chinook salmon in the Tuolumne.

MEDIA CENTER - Press

Costs soar for plan to fix Hetch Hetchy
Source: The Examiner
Marisa Lagos
February 9, 2005

The San Francisco Public Utilities Commission passed a $4.3 billion Hetch Hetchy improvement program for environmental review Tuesday -- a plan that will cost ratepayers $700 million more than originally proposed.

The SFPUC blamed the increase on inadequate planning during previous administrations, pointing toward the lack of a systemwide $145 million environmental review in the original proposal. The other increases are due to capital projects meant to ensure overall reliability as well as adequate service during a drought or earthquake.

The City's Planning Department will now begin its environmental assessment of the SFPUC's plan, which could take up to a year and a half.

If the plan stays as is, the SFPUC will pass on the $700 million increase to its San Francisco and suburban customers through additional rate increases, said Tony Winnicker, a spokesman for the agency.

The SFPUC manages Hetch Hetchy, which serves about 2.5 million customers in San Francisco, San Mateo, Santa Clara and Alameda counties. All of the agency's wholesale customers are outside The City, and many have been quick to criticize what they see as poor management at the San Francisco agency.

In 2002, San Francisco voters approved a proposition authorizing $1.6 billion in bonds for capital improvement projects, to be repaid through future rate increases.