Emphasizing the importance of reliability, water supply and flood control, the Public Service Board approved El Paso Water’s Fiscal Year 2026-2027 water, wastewater and stormwater budgets on Jan. 14.
The approved budget, rates and fees mean that customers will see an increase of $9.99 per month on the typical residential bill. The amount totals a 12% increase over last year’s bill.
El Paso Water’s Public Service Board annually sets rates and fees to maintain high quality water, wastewater, reclaimed and stormwater services. As a public water system, El Paso Water does not profit from rates or fees and works to keep rates down through programs to manage costs and increase efficiencies and by pursuing outside revenue sources such as grants and land sales.
“We know affordability is important to our customers, and that is why we are adding an expanded menu of options to help them lower monthly bills,” said EPWater President and CEO John Balliew, adding that the financial impact to customers is always considered carefully.
The new rate/fee options include:
- A new affordability initiative that offers a 19% stormwater fee reduction for residential properties under 900 square feet.
- Low water users of 4 CCFs (2,992 gallons) or less will not be charged the Water Supply Replacement Charge (WSRC) of $17.49 a month. More than 80,000 customers – about one-third of total customers – qualify.
- Very low water users of 1 CCF (748 gallons) or less qualify for $13.99 in savings a month in addition to the WSRC. About 8,000 customers qualify.
- Additionally, multiple residential rebate programs are available at epwater.org. Businesses can apply for the WaterWise Rebate Program.
“Conserving water use is the best option to lower bills”, Balliew said.
EPWater also offers tools that allow customers to better understand their monthly costs, including bill breakdown details and a summary of water use history available through account and billing resources.
Meeting discussion
The Public Service Board, which governs EPWater, voted 5-2 to approve the utility’s budget on Jan. 14, with Mayor Renard Johnson and PSB Secretary-Treasurer Stefani Block Uribarri opposing. The meeting drew dozens of residents seeking to offer public comments on increasing rates. All who wanted to comment were given the opportunity to speak.
“El Paso Water is not out to make money; this is not a private entity,” PSB member Dr. Hector Ocaranza said before the vote. “This is a community-owned organization in which the mission is to provide quality service to everyone. What happened with the current Northeast water outage reflects the importance of investing in infrastructure.”
“Affordability has to be part of responsible policy making,” Mayor Johnson said. “I believe we should pursue a phased approach, focus on critical priorities and explore cost controls and alternative funding so we can protect our water system without placing an undue burden on the rate payer.”
Capital investments
Prompted by the board, Balliew addressed the consequences if rates did not increase.
“The capital program is the primary driver of the budget,” Balliew said. “The longer we defer capital investments, the more expensive projects become as well as increasing the likelihood of a high-risk event occurring in the system.”
EPWater’s funding priorities include:
- Reliability – $431 million: Wastewater plant improvements, water and wastewater line replacement and meter replacement programs. Bustamante Plant expansion and rehabilitation is the single largest project in utility history.
- Growth – $166 million: Water and wastewater extensions for developing areas, such as in Northwest El Paso, new services to developments north of Montana near Fort Bliss and Montana Vista.
- Water supply – $118 million: Pure Water Center construction, Kay Bailey Hutchison Desalination Plant expansion, well drilling and equipping.
- Flood control – $60 million: Drainage improvements, including the Palisades Project, Hondo Pass and Will Ruth Pond.
Affordability and customer assistance
In addition to expanded affordability options designed to benefit low and very low water users, EPWater offers several assistance and conservation programs intended to help customers manage costs. The utility’s AguaCares program provides eligible customers facing financial hardships with up to a $250 credit toward their water bill to help avoid service disconnection.
As a public utility, El Paso Water does not profit from rates or fees and continues to emphasize conservation, efficiency, and targeted assistance programs as key tools to help customers control costs while maintaining reliable water, wastewater, and stormwater services.
The budget, rates and fees will go into effect March 1.
The post EPWater approves FY 2026-2027 budget and new affordability measures appeared first on El Paso Matters.
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