Utilities Advisory Commission - June 3, 2026

Commission sends amended utilities work plan to City Council

The Utilities Advisory Commission voted 5-0 to recommend City Council approval of an amended fiscal 2026-27 work plan. The commission added a stand-alone objective for the Grid Mod electric-grid modernization initiative and revised objectives across the city’s utility systems.

The revisions addressed the gas-transition study, water and electric reliability and resiliency, recycled-water rates, affordability, fiber-to-the-premises next steps, large electric loads, power-purchase agreements, legislative positions, customer communications and regional-water policy. Staff will organize the objectives by utility and into categories such as key priorities and ongoing work before the plan goes to the council, which is expected in the September-to-October timeframe.

Commissioners debated whether the plan should separate standing responsibilities from a smaller group of key priorities and whether proposed electric-utility strategy work would duplicate existing Grid Mod, capital-planning, large-load, rate and power-procurement objectives. They also discussed the commission’s role in regional water issues involving SFPUC and the Bay Area Water Supply and Conservation Agency. The council liaison advised that recommendations should move through staff, the City Council and the city’s regional-water representative, while staff said relevant regional actions and SFPUC deliverables would return to the commission for review.

The work-plan discussion included a projection that the combined median monthly utility bill would increase from $442.60 to approximately $638 by fiscal 2031. Other figures discussed included an estimated $375 million to $450 million for Grid Mod, $71 million in gas capital improvements over five years, approximately $103 million for Headworks Replacement and $153.8 million in SRF debt. The commission’s motion was limited to recommending the work plan.

Staff said gas-transition work during the next 12 months would focus on building and correcting a system base model rather than completing a comprehensive 10- to 20-year transition plan. Public commenters urged stronger efforts to reduce residential natural-gas use, including consideration of gas-line decommissioning, electrification, new residential gas connections and health communications about gas stoves. No separate commission action on those requests was recorded.

Foothills undergrounding approaches conduit milestone

The Foothills Utilities Underground Project had about 1,200 feet of conduit work remaining, roughly 2% of the approximately nine-mile project, when staff presented its update. Staff expects to complete the conduit by the end of June 2026, then underground secondary customer services and deenergize the existing overhead line in November.

Utilities staff also announced that rebates for permanent induction cooktops or ranges are $500, increasing to $1,000 for income-qualified customers. Portable induction cooktop rebates are $50, or $100 for income-qualified customers. The department plans to buy another dozen portable cooktops for the library loaner program.

Primary sources

Watch the meeting on YouTube · Read the official meeting packet