SFPUC - Annual Reports Commitment | Page 2

Cesar Chavez New Sewer Pipe Construction Annual Report for the Fiscal Year Ending June 30, 2012 General Manager’s Message The San Francisco Public Utilities Commission (SFPUC) continues to set the standard for excellence in operations, environmental stewardship, community engagement and fiscal responsibility for water, power and sewer utilities worldwide. Our 2300 employees work to ensure around-the-clock reliable service to our customers. Nationwide, utilities are grappling with the problem of aging infrastructure. The longer upgrades are delayed, the more expensive they become. A strong, seismically sound system comes at a price. Our Water System Improvement Program, a $4.6 billion dollar investment, has made the Hetch Hetchy Regional Water System more seismically reliable than ever. We have also achieved critical planning milestones to advance our Sewer System Improvement Program. These essential programs advance our mission to provide our customers with the highest quality drinking water while protecting public health, the environment and the resources entrusted to our care. We continue to maintain critical infrastructure upgrades for our Water, Power and Sewer Enterprises with our commitment to affordability and reliability in mind. Currently our delicious Hetch Hetchy tap water costs less than one cent per gallon, and taking that water from your drain to the ocean or bay costs a little more than one cent per gallon. We take our pledge to manage revenues prudently, and with full transparency, very seriously. San Francisco has always been a leader in innovation. As we continue to upgrade our infrastructure, we are developing and implementing green, renewable power sources to help us face the challenges of climate change. We recognize that our revenues come from the hard earned dollars of our 2.6 million customers, and we commit to using those resources to invest in our infrastructure, public health and the environment, while sharing the job opportunities created by our work with all of the communities that we serve. Our commitment is to a sustainable future. Harlan L. Kelly Jr. General Manager 1 2