Utility Proposes Increased Rates to Support Customer Assistance and Infrastructure Investments

July 16, 2025 | Austin, Travis County, Texas


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Utility Proposes Increased Rates to Support Customer Assistance and Infrastructure Investments
In a recent meeting of the Austin Water and Wastewater Commission, officials gathered under the bright lights of city hall to discuss vital updates regarding the community's water services and the financial strategies that support them. Central to the discussions was the customer assistance program, which has seen significant growth in enrollment over recent years. To sustain this program, the commission proposed an increase in the community benefit charge from $0.15 to $0.30 per 1,000 gallons. This adjustment aims to ensure that customers enrolled in the assistance program continue to pay approximately 50% of the regular residential rates.

The meeting also highlighted the need for a more equitable rate structure for commercial and multifamily customers, particularly concerning irrigation use. Currently, these customers are not subject to the same tiered pricing system that residential customers benefit from, which is designed to keep essential services affordable. The commission discussed utilizing advanced metering infrastructure to create specific budgets for these customers based on their peak demand, allowing for a more tailored approach to setting rates.

As the commission reviewed the budget development process, they acknowledged the necessity of balancing affordability with essential operational and infrastructure investments. The proposed budget suggests an average monthly bill increase of $8.71 for residential customers, translating to about $0.29 a day. For those in the customer assistance program, the increase would be approximately $5.50 per month, or $0.18 per day.

The commission emphasized the importance of maintaining financial stability and strong bond ratings, which have remained stable since 2016. This stability is crucial for securing favorable borrowing rates for future capital projects. Additionally, the budget includes plans for strategic investments in staffing and initiatives aimed at reducing water loss and enhancing conservation efforts through increased public education.

As the meeting concluded, the commission's commitment to providing high-quality water and wastewater services while prioritizing affordability and community support was clear, setting the stage for future developments in Austin's water management strategies.

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