Notice Regarding Rate Changes
Please review the attached document for details about this rate change.
Decrease to base and usage charges
Q. When will my rates change?
A. Texas Water Utilities began a rate review process in June 2024 that is nearing conclusion, only pending a final order from Texas Water Utilities’s regulator, the Public Utility Commission of Texas (PUCT). Once the PUCT approves the new rates, Texas Water Utilities will put them into effect, and they will be reflected on your bills.
Q. Why are my rates changing?
A. When the PUCT has completed its review of Texas Water Utilities’s current rates, it will approve new rates that are based on Texas Water Utilities’s necessary costs to provide water and wastewater service.
Q. What will my rates change to?
A. Rates for impacted customers are decreasing; the amount of the decrease depends on the size of your meter and the number of gallons you use per month. Residential customers of the Beacon Bay system will see a larger decrease in their rates.
Q. Is approval from the PUCT necessary for this change to take effect?
A. Yes. Texas Water Utilities is permitted to charge only rates that have been approved by the PUCT. Although we anticipate the approval of this rate change within the next few months, it will only be implemented when approved by the PUCT.
Q. When will rates change again?
A. Texas Water Utilities regularly reviews its costs to determine when a rate change should be requested and implemented pending approval of the PUCT.
Q. Is this rate change applicable to all Texas Water Utilities customers?
A. No. This rate change applies to most Texas Water Utilities customers but not to those in systems acquired after the last rate review or within certain cities (Buda, Ivanhoe, Kyle, and Houston). It also does not affect customers of 4-D, Southern Horizons, NextEra, Crystal Springs, Shadowood, Arroyo Doble, or Midway.
Addition of Dkt 56665 surcharge
Q. What is this surcharge?
A. When Texas Water Utilities undergoes a rate review with its regulator, the Public Utility Commission of Texas (PUCT), Texas Water Utilities incurs fees beyond its operational costs. The PUCT reviews the additional costs and if found reasonable and necessary, approves Texas Water Utilities to recover them via a monthly surcharge to customers.
Q. How much is this surcharge?
A. Water customers will be assessed a surcharge of $0.51 per month, and wastewater customers will be assessed a surcharge of $0.36 per month.
Q. How long will this surcharge be included on my bill?
A. The surcharge is expected to be applied to customer bills for approximately 36 months.
Q. Is approval from the PUCT necessary for this change to take effect?
A. Yes. Texas Water Utilities is permitted to charge only rates that have been approved by the PUCT. Although we anticipate the approval of this surcharge within the next few months, it will only be implemented when approved by the PUCT.
Q. Is this rate change applicable to all Texas Water Utilities customers?
A. No. This rate change applies to most Texas Water Utilities customers but not to those in systems acquired after the last rate review or within certain cities (Buda, Ivanhoe, Kyle, and Houston). It also does not affect customers of 4-D, Southern Horizons, NextEra, Crystal Springs, Shadowood, Arroyo Doble, or Midway.
Q. Will I be assessed this surcharge even if I was not a customer during Texas Water Utilities’s last rate review?
A. Yes, other than the exceptions noted above (certain acquisitions and in-city customers), all Texas Water Utilities customers will be assessed this surcharge.
Elimination of Dkt 50944 surcharge/surcredit
Q. What are these surcharges/surcredits?
A. These charges were mandated by Texas Water Utilities’s regulator, the Public Utility Commission of Texas (PUCT), to reconcile interim rates charged between September 2020 and February 2022 with the final rates approved in February 2022. Because the final rates were both higher and lower than the interim rates charged, some customers are now receiving a surcharge and others are receiving a surcredit.
Q. When were these surcharges/surcredits implemented?
A. These surcharges/surcredits were initially implemented in March and April 2024 and were intended to be included on customer bills for approximately 18 months.
Q. What is the amount of the surcharges/surcredits?
A. The surcharges and surcredits vary by customer group as well as by meter size. The best way to determine what rate you are being charged is to look at the line item amount on one of your recent bills.
Q. When will the surcharges/surcredits cease?
A. The surcharges/surcredits will cease for different customer groups at various stages between October 1st and November 20th.
Q. Did the PUCT approve these surcharges/surcredits and the timing of their closing?
A. Yes, these surcharges and surcredits were approved by the Commission in Docket No. 53061 by Order No. 10, issued December 18, 2023.
Q. Should I be concerned if I see this surcharge/surcredit on my October or November bill?
A. No, the surcharges/surcredits are being eliminated at different times for different customer groups. All surcharges/surcredits will be eliminated for all bills issued after November 20, 2025.
Q. Why was I assessed a surcharge/surcredit when I was not a customer during the period when interim rates were in place?
A. Reconciliation was done on a system-by-system basis. All customers of a given system were assessed the same surcharge or surcredit, regardless of when they became a customer of Texas Water Utilities.
System Improvement Charge
Q. What is a System Improvement Charge (SIC)?
A. The SIC is a mechanism that allow Texas Water Utilities to begin recovering the new capital investment it makes in its water and wastewater systems. It allows Texas Water Utilities to continue making the necessary improvements to the system infrastructure to continue providing customers high quality and reliable service.
Q. When will I be assessed the SIC?
A. Texas Water Utilities will mail a notice to all customers at the time it files an application with its regulator, the Public Utility Commission of Texas (PUCT) requesting authorization to charge the SIC. The PUCT will review Texas Water Utilities’s application and, only after thorough review, approve the SIC. This application review process typically takes at least six months, so you should not expect to see any SIC charges on your bill until at least Spring of 2026.
Q. How much will the SIC be?
A. The amount of the proposed SIC for each meter size will be included in the notice that Texas Water Utilities will mail out to all customers at the time the SIC application is filed.
Q. Can Texas Water Utilities charge a SIC before it has been approved by the Public Utility Commission of Texas?
A. No, Texas Water Utilities cannot and will not charge a SIC until it has been reviewed and approved by the Public Utility Commission of Texas.
Q. Has Texas Water Utilities charged a SIC in the past?
A. Yes, Texas Water Utilities requested authorization of SICs in 2022 and 2023. Both were ultimately approved by the PUCT, though at amounts less than what Texas Water Utilities initially proposed.