Starting in January, Central Texas cities and utilities are bracing for increased water rates as the Lower Colorado River Authority (LCRA) Board of Directors has greenlit a fee hike for firm water customers. According to KVUE, the new rate will be $165 per acre-foot, a $10 increase from the current $155, affecting customers like cities and utilities.
This adjustment is being made to support new water supply projects, compensate for overall cost increases and fund dam upgrades. The City of Austin, although the LCRA's largest customer, is not subject to this rate increase under a prior agreement which included a prepayment of $100 million back in 1999. Austin's contract permits access to up to 325,000 acre-feet of water annually, with additional costs incurred only when consumption exceeds 201,000 acre-feet for two consecutive years, excluding usage for power plants. "Austin currently uses about 140,000 acre-feet of water a year," LCRA spokesperson Clara Tuma informed KVUE.
In anticipation of these changes, Cedar Park had already adjusted its water rate back in February 2024, which ushered in an average water bill increase from $84.42 to $92.28. The rise of approximately 9.3% was attributed to a confluence of factors including, heightened operations and maintenance costs as well as expenses related to materials, equipment, fuel, and emergency repairs. Conversely, Lago Vista Place One city council member Shane Saum voiced his concern, suggesting that smaller cities like Lago Vista may be disproportionately affected, a point he raised in a letter challenging the LCRA, per KVUE.
Meanwhile, Austin Water has laid out a proposal for rate hikes that would affect local residents, with residential rates expected to jump by an average of 9.5%, as reported by the Austin Monitor. The proposal would see the combined monthly water and wastewater bill for an average customer increase from $85 to $93.12. This comprehensive plan aims to facilitate significant enhancements to the Walnut Creek Treatment Plant to wrangle with Austin’s growing water demands and aging infrastructure. “Chief among these are plans for significant upgrades to the city’s Walnut Creek Treatment Plant,” Austin Water stated, foregrounding the urgency of these expansions and improvements.
Adjustments to the current five-tier fixed fee system for residential customers are also on the table. While tier 4 users would experience a fee reduction, tier 5 -- the highest water consumers -- would incur an increased fee to $34.79. The revised rates would also impact customer assistance program participants and multifamily complexes, with the latter expecting bill increments of roughly 16.8%. Nonresidential consumers face significant rises as well, especially commercial customers with a substantial increase of 22.7%. In the interim before a final vote due in August, residents and stakeholders can review ample materials on the proposed rates through the SpeakUp Austin website.
