SAN ANTONIO – The San Antonio Water System (SAWS) plans to propose increasing rates for residents for the first time since January 2020.
During a board meeting on Monday, Doug Evanson, the executive vice president and chief financial officer of SAWS, said an increase, planned for 2026, would support a capital improvement plan focused on upgrades. SAWS serves more than 2 million customers in the San Antonio area.
Since the 2020 rate adjustment, SAWS has invested $2.2 billion in improvements without the need for a rate increase. That cannot continue, Evanson said.
“In order to carry out the anticipated capital plan for 2026, I believe that rate supports will be needed to maintain our very strong credit metrics, which support our credit rating,” Evanson said.
Evanson stated that the utility company needs the rate support because of major projects that could cost approximately $600 million.
“The two major initiatives really fueling the projected 2026 capital improvement program are the wastewater master plan and the water stewardship initiative,” Evanson said.
In 2026, Evanson said that the utility plans to spend $340 million for improvements to multiple wastewater centers, which have been in service since 1965 and 1987. If no modifications are made, Evanson stated that SAWS could face permit violations.
SAWS also plans to invest $125 million into water distribution network improvements next year, according to Evanson.
“The current plan is to submit a ‘no rate increase’ proposed budget next month with a desired approval at the November board meeting,” Evanson said.
As a result of turnover with the San Antonio City Council and the board of trustees at SAWS, Evanson said that rate adjustment discussions will continue into 2026. The exact rate has yet to be determined.
The rate increase must first receive approval from the SAWS board, followed by City Council.
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