SFPUC - Annual Reports Leading the Way | Page 2

Clean, efficient, reliable… Every day, we deliver high-quality, efficient water, power and sewer services to serve the needs of the San Francisco Bay Area. Water Power Sewer Delivering high-quality water every day Generating clean energy for vital city services Protecting public health and the environment We deliver drinking water from the Hetch Hetchy Regional Water System to 2.5 million people and businesses in San Francisco, Alameda, Santa Clara, and San Mateo counties. This gravity-fed system reliably delivers water across the state without the use of energy-consuming pumping. Through the Hetch Hetchy Power System’s hydroelectric and solar installations, we generate approximately 1.7 billion kilowatt hours of clean, reliable energy annually for vital City services. With our diverse, renewable energy portfolio, we are one of the cleanest energy utilities in California. We protect the public and the environment through the operation of the San Francisco Combined Sewer System. We provide innovative programs to manage sewage and stormwater, and prevent pollution of the Bay and Ocean. Annual Report for the Fiscal Year Ending June 30, 2011 General Manager’s Message Every day, the 2,300 employees of the San Francisco Public Utilities Commission deliver reliable water, power and sewer services to serve our customers’ needs. This Annual Report is a snapshot of that exceptional work and highlights how we are leading the way in delivering clean, efficient services now and into the future. In 2010-11, we continued to maintain a stable financial condition, controlling our operating costs and maintaining positive revenues. Our continuing investment in upgrading our infrastructure – the $4.6 billion Water System Improvement Program – gained industry recognition with the 2010 Project Achievement Award from the Construction Management Association of America. For the 15th consecutive year, our daily operations at the Oceanside Water Pollution Control Plant received the National Association of Clean Water Agencies Platinum Award. Our in-city municipal solar installations gained us the 2010 Green Power Leadership Award from the U.S. Environmental Protection Agency for in-city generation of green energy. We are continuing to innovate through research partnerships with NASA – on algae-based wastewater treatment; with the University of California, Berkeley – on the causes and treatments of Sudden Oak Death; and with the U.S. Department of Fish and Wildlife, Yosemite National Park, and Stanislaus National Forest – on the historical and current ecosystem conditions of the Upper Tuolumne River. San Francisco Public Utilities Commission We are also proud recipients of the Government Finance Officers Association (GFOA) Award for Outstanding Achievement for our first fiscal year 2010 Popular Annual Financial Report and GFOA’s Excellence in Financial Reporting for our fiscal year 2010 Comprehensive Annual Financial Report. Francesca Vietor President Anson Moran Vice President Ann Moller Caen Commissioner Art Torres Commissioner Vince Courtney Commissioner On behalf of the San Francisco Public Utilities Commission and our 2,300 employees, I am pleased to present our Annual Report for the fiscal year ending on June 30, 2011. Sincerely, Contents What We Do 2 Water 2 Power 4 Sewer 6 Financial Performance 8 Ed Harrington General Manager 1