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The San Antonio Water System is proposing a new rate adjustment beginning this year.
The proposal could increase residential monthly bills by around 32% over the next four years. SAWS Chief Financial Officer Doug Evanson briefed the local utility’s board during a meeting on Tuesday.
Under the initial proposal, an average SAWS water bill with included fees currently averages $60.41. That same bill would average $79.47 by 2029.
Customers would see just under a $5 increase for this year, with a total average residential bill projected to be around $65.17. Rates would continue to increase anywhere from 6.5% to 7.5% per year after 2026.
Evanson said the proposed 2026 rate is still lower than what customers were paying in 2020 prior to a rate restructuring in 2023, which lowered water and sewer charges for most residential customers.
He also said SAWS’ current and proposed rates are still lower compared to other areas like Houston, El Paso, and Austin.
“We’re seeing a lot of activity out there and a lot of increases coming through in this space,” said Evanson.
The proposed changes would not increase customer bills for residents who participate in the SAWS Uplift program, an initiative that provides financial assistance for those who qualify.
SAWS said several factors are stretching the utility's budget, including aging infrastructure, ongoing drought conditions, and new legislative requirements.
Officials said a rate adjustment beginning this year could help fund upgrades to wastewater treatment plants and repairs and replacements of aging pipelines.
More than $340 million is needed to rehabilitate the two largest water recycling centers that have been in service since 1965 and 1987, respectively. SAWS said a failure to make improvements could result in permit violations and could trigger additional environmental oversight.
The continuation of SAWS’ water main replacement program is also critical as the city remains in extreme drought with aquifer levels near record lows.
A rate study conducted by the firm Carollo Engineers found the cost of total service for all of SAWS customers — including residential, general, irrigation, and wholesale — totals to over $552 million dollars for 2026.
The rate adjustment will provide an additional $60.5 million in operating revenue, with $15.6 being available to use for operations and maintenance.
This would be the SAWS’ first rate increase since 2020. Proposed rates are not yet final and could be subject to change following forthcoming discussions.
New rates would need to be approved first by SAWS trustees and then by San Antonio City Council before taking effect.
If approved by city council, SAWS expects the new rates to take effect during the first half of this year.
