SAN ANTONIO – The San Antonio City Council is now considering a slightly lower series of rate hikes for San Antonio Water System customers.
But the amended plan would only save a typical customer less than $4 per month compared to what SAWS originally proposed.
The water utility is looking to raise additional revenue, in large part, for billions of dollars’ worth of capital expenses, including upgrading wastewater treatment plants, replacing pipes and installing backup generators.
Last month, SAWS trustees recommended a four-year series of rate hikes that would raise a typical residential bill by up to $18.51 by 2029 — a 32.7% increase. That equates to an extra $222 per year.
Following a review of the utility’s proposal, though, city staff presented an amended series of smaller rates hikes with which they said the water utility agrees.
The size of the increases for 2028 and 2029 in the newest proposal could vary, resulting in a total monthly increase somewhere between $14.80 and $16.92 on an average residential bill — or 26.1% to 29.9%. That works out to an extra $178 to $203 per year.
Residents could see their bills increase as early as July 1, with subsequent increases each January. But any increase requires City Council approval, and there are skeptics among the 11 members on the dais.
Councilwoman Marina Alderete Gavito (D7) brought up the financial squeeze that residents face from the gas pump to the grocery store, as well as concerns about frequent leaking pipes.
“I’m not against utilities coming and asking for what they need. You know, (I) approved the last CPS (Energy) rate increase because, to me, there was a plan that I was confident in. I’m not confident in this plan, especially when I’m seeing instances like I saw this week,” she said, referring to a recent water leak situation.
SAWS CEO Robert Puente said if the utility isn’t approved for a rate increase this time, it would be back in the fall to try again.
“These are needs that have to be met,” he said. “Although it is very frustrating to see these breaks, water flowing down the street, to address them, we have to spend money to change out those pipelines. We have to spend money on a replacement project that helps us get ahead and identify those lines that need to be changed out.”
Mayor Gina Ortiz Jones is part of the SAWS board and is in favor of an increase. She acknowledged rising prices SAWS customers face elsewhere but said “that doesn’t make the need for these water projects any less important or any less urgent to address.”
“It doesn’t change the fact that we have 100-year-old pipes in our community,” she continued. “It doesn’t change the fact that climate change and prolonged droughts have impacted the life cycle of our infrastructure. And it doesn’t change that we have a wastewater treatment facility plant that was built in 1965 and is in desperate, desperate need of upgrades.”
SAWS rates last went up in 2020, though the utility also restructured its rate system ahead of 2023, which did not affect its overall revenue. The restructuring resulted in many residential bills dropping, though there was an increase in commercial rates.
You can see the full set of proposed rate changes — original and amended — below:
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