Every morning in the SFPUC’s Moccasin office, located 140 miles east of San Francisco, Ethan Billigmeier, Wildfire Mitigation Specialist, starts his day by checking the daily Fire Potential Index.  

The SFPUC is the first publicly owned utility in California to use a Fire Potential Index, which is created from an artificial intelligence-based, fire-weather forecasting program. The technology uses temperature, humidity, wind speeds, and fuel moisture levels from over 300 privately owned weather stations to produce a daily index, which informs fire protection steps the SFPUC will take throughout the day.  

The Fire Potential Index is a critical piece in an array of industry-leading fire protection measures that the SFPUC employs to limit the risk of wildfires. These impressive measures, coupled with the agency’s financial management policies, have been recognized by bond rating agencies and continue to help keep rates affordable.  

“Part of the SFPUC’s mission is to be good stewards of the lands and natural resources entrusted to us,” Billigmeier said. “Preventing wildfires is a critical part of fulfilling that mission, especially in our current climate, where fires are starting year-round.”  

Wildfire Mitigation Strategies in Action on the Ground 

Around the clock, the SFPUC Wildfire Mitigation team surveys the SFPUC’s electrical assets and utilizes vegetation management practices, among others, to eliminate potential fire hazards in the field.  

“We were excited to be able to demonstrate to the bond rating agencies the amazing technology the Hetch Hetchy team is using to monitor the power lines in the forest and the extensive work that has been done to manage growth along the power lines,” said Nikolai J. Sklaroff, Capital Finance Director. 

The SFPUC manages about 324 miles of transmission lines and 49 miles of distribution lines from San Francisco to Hetch Hetchy Reservoir that must be inspected annually. Transmission lines move electricity over long distances at very high voltages, while distribution lines carry electricity at lower voltages from substations to customers.  

Vegetation inspections of trees take place along the SFPUC’s transmission and distribution corridor to analyze what areas need to be cut back. Yearly, the Hetch Hetchy Vegetation Management crew and Natural Resources and Lands Management team conduct tree work. This ensures the electrical assets can function with as little fire risk as possible. Vegetation that requires treatment is marked via GPS coordinates and a work order is created to perform the required reinforcements, like side trims of trees and greenery removal. 

A Strong Wildfire Mitigation Plan Helps Protect Bond Ratings 

The SFPUC’s robust Wildfire Mitigation Plan played a part in recently protecting the agency’s bond ratings. The agency maintained its bond rating of AA- from the bond rating agency Fitch and reversed the negative outlook placed upon the SFPUC by bond rating agency S&P Global Ratings. S&P restored a stable outlook and confirmed the SFPUC’s AA rating. 

Thanks to the SFPUC’s innovative wildfire mitigation efforts and strong financial management practices, its power revenue bond ratings were maintained. This allows the SFPUC to access low-interest borrowing rates, which keep financial costs down, in turn helping to keep customer rates affordable. By maintaining high bond ratings per the San Francisco City Charter requirements, the SFPUC can fund critical infrastructure and keep rates affordable for its customers at the same time.  

Earlier this year, the SFPUC was impacted in a peculiar way by the devastating wildfires in Southern California, despite being thousands of miles away. As the wildfires were ablaze in Southern California, bond rating agencies were anticipating the possibility of fires occurring near power lines in Northern California. Consequently, the bond rating agency S&P Global Ratings issued a negative outlook on the SFPUC and a number of other Northern California power ratings. 

The SFPUC Capital Finance team collaborated with colleagues from the Power Enterprise, Hetch Hetchy Water and Power, Finance, and the City Attorney’s office to defend the SFPUC’s bond rating. Due to the agency’s innovative wildfire mitigation efforts, substantial financial management policies, and cross-team collaboration, the SFPUC was able to tell that story, reverse S&P’s negative outlook on the SFPUC’s power bond rating and ultimately ensure affordable rates for SFPUC customers.  

“Cities in California are looking to San Francisco and the SFPUC as leaders in wildfire mitigation,” General Manager Dennis Herrera said. “This is one of the many examples of how the agency is a leader in excellent service, environmental stewardship, and innovation.”