City’s Water Rate Surges

The San Francisco Public Utilities Commission, which provides water to 26 Bay Area water districts—including Millbrae—will impose higher rates on many Peninsula cities because they conserved water.

Since the water agency overestimated cities’ demand for water, it will raise the per unit cost to its wholesale customers on July 1 by about 38 percent to offset the decreased overall consumption. Millbrae will be paying an additional $800,000 per year for its wholesale water rate, but it will not pass on its increased costs to residents, at least for now.

“It’s a very difficult position because it’s the only source of water we can get, and we’re governed by what they do,” said Mayor Dan Quigg. “At some point, we’re going to have to pass that cost on, whether we do it this year, or two years from now.” 

A 7 percent increase is already slated to go into effect in July, but residents must approve any further increases, in accordance with Proposition 218.

Originally, the SFPUC wanted to raise rates 47 percent for Peninsula and South Bay customers. But the Bay Area Water Supply & Conservation Agency, which represents 24 cities that purchase wholesale water from the SFPUC, negotiated the rate down to 38 percent.

The SFPUC could not be immediately reached for comment.

“The reason they were going to raise it 47 percent is because they use the revenue to maintain their system,” Quigg, who is a member of BAWSCA said.

The SFPUC is currently funding a $4.6 billion project to , and had not anticipated the decreased revenue.

“For years, [the SFPUC] took our money, and they did not improve the infrastructure, and now we’re all stuck paying the tab,” said Councilwoman Gina Papan.

Papan wants BAWSCA to continue fighting for a rate decrease.

In July, Millbrae residents will pay an average of $53.17 per month for their water, which is on par with Burlingame and San Bruno.

In contrast, the average Hillsborough customer pays about $125 per month, but consumes almost four times as much water, according to Sustainable San Mateo, a nonprofit that compiles an annual report on environmental and economic indicators for each city.

Tentatively, the Public Works Department estimates that by January, the city will need to analyze additional rate increases of approximately 10 or 12 percent.

“We are tied completely to the SFPUC,” said Director of Public Works Ron Popp. 

Millbrae’s only source of drinking water is from the SFPUC, as the city has no wells, nor are there any other water pipelines from other water suppliers that run through Millbrae, according to a Department of Public Works study.