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26 <br />Historical Wholesale Water Cost <br />The table below sets forth the history of wholesale water cost increases under the WSA <br />since Fiscal Year 2017-18 and projected wholesale water cost increases through Fiscal Year <br />2028-29. See Table 9 for historical water rate increases for the Enterprise. <br />Table 5 <br />Historical and Projected Wholesale Water Cost Change <br />Fiscal Year <br />Wholesale Water <br />Rate Changes Cost Per CCF(1) <br />2017-18 9.3%$4.10 <br />2018-19 0.0 4.10 <br />2019-20 0.0 4.10 <br />2020-21 0.0 4.10 <br />2021-22 9.5 4.49 <br />2022-23 5.8 4.75 <br />2023-24 9.7 5.21 <br />2024-25(2)8.8 5.67 <br />2025-26(2)1.4 5.75 <br />2026-27(2)5.3 6.05 <br />2027-28(2)7.4 6.50 <br />2028-29(2)3.6 6.74 <br />_____________________ <br />Sources: Bay Area Water Supply and Conservation Agency and City of <br />Redwood City Public Works Services Department. <br />(1) Excludes the BAWSCA Surcharge. <br />(2) The projections provided by the SFPUC in February 2024 initially included a 6.5% <br />rate change and a $5.55 cost per CCF for Fiscal Year 2024-25, along with the rate <br />changes shown above for subsequent fiscal years. However, the SFPUC provided <br />subsequent notice that the Fiscal Year 2024-25 rate change would be 8.8% and the <br />Fiscal Year 2024-25 cost per CCF would be $5.67. The SFPUC did not provide <br />revised projections for subsequent fiscal years. Consequently, the cost per CCF <br />shown above for Fiscal Years 2025-26 through 2028-29 are based on a $5.67 cost <br />per CCF in Fiscal Year 2024-25 and the projected rate changes shown above for <br />Fiscal Years 2025-26 through 2028-29. <br />The WSA contains rate setting procedures that allocate the cost of operating the Regional <br />Water System among the City of San Francisco and the suburban water purchasers based on <br />their respective water deliveries. These procedures, together with the actual amount of water <br />deliveries to the City, determine the amount that the City pays under the WSA. The City <br />anticipates that its cost of acquiring water from the City of San Francisco will increase in the future <br />as the SFPUC continues to implement the WSIP. See “RISK FACTORS – Wholesale Water <br />Costs.” <br />Pursuant to the WSA, the members of BAWSCA (the “Members”) are required to make <br />payments to the City of San Francisco for water delivered and, as a component of the price of <br />water, the Members collectively are obligated to make annual payments to the City of San <br />Francisco through 2034 to provide capital cost recovery for certain assets of the Regional Water <br />System for which the City of San Francisco had not recovered fully its capital costs at the time of <br />the execution and delivery of the WSA (the “Capital Cost Recovery Payments”). <br />The WSA provides that the Members, acting through BAWSCA, may prepay the remaining <br />Capital Cost Recovery Payments, in whole or in part, and, in order to achieve cost savings. The <br />8.A. - Page 40 of 255 <br />668