BPUB customers to see higher bills as program ends

After getting the go-ahead from the Brownsville City Commission on May 3, the Brownsville Public Utility Board announced on May 4 that it will be updating its electric, water and wastewater rates.

That adjustment will include a roughly 22 percent decrease in the base rate BPUB charges customers for electricity, a decrease that will be phased in over two years. At the same time, based on current fuel prices, customers will see an increase in their total bill despite the lower base rate, BPUB said.

The last time the city commission gave BPUB permission to adjust rates, it came in the form of multi-phase rate increases to pay for the utility’s share of the Tenaska power plant project, which ultimately was abandoned. According to Tenaska, the project became no longer financially feasible due to changes in the Texas electricity market. The Tenaska deal is the subject of an ongoing audit by the city. BPUB said that 22 percent of the rate increase at that time was designated to fund the power plant.

BPUB said that since 2016 it has been using those revenues for its “bill reduction program,” which supplements the cost of fuel, purchased energy and marketing (FPEM) charges which means ratepayers have been paying less than the actual cost for FPEM on their monthly bill, BPUB said. However, as the base electric rate is lowered, BPUB plans to phase out its bill reduction program, which means the FPEM charges customers pay will fluctuate from month to month, depending on market conditions, which means higher total bills based on the current price of fuel, BPUB said.

The adjustment to the base rate will start June 1 and will be reflected on the first bill customers receive after that date, while the second part of the phase-in will take effect June 1, 2023.

The city commission also approved a series of increases to water customer service charges and rates, plus a new resaca maintenance fee for all BPUB water customers. BPUB said the fee will help pay for the ongoing Resaca Restoration Project by matching federal funds earmarked for the project.

BPUB recently received a $4.6 million federal grant for phase-one restoration and dredging of Town Resaca. While phase one does not require matching local funding, it may be necessary for subsequent phases, BPUB said, which said it is also working on a resaca project with the U.S. Army Corps of Engineers in the Jagou area. That project does require matching funds, BPUB said.

The Resaca Restoration Project is closely tied to BPUB’s water system maintenance and operation since dredged resacas increase the available capacity of raw water and the capacity for collecting stormwater, BPUB said.

BPUB said the new adjustment marks the first increase in residential water rates in six years. Wastewater rates and customer service charges, which haven’t been increased in eight years, BPUB said.

According to BPUB: As of June 1, the residential water rate will rise 8 percent and the residential wastewater rate 9 percent, and $4.50 resaca restoration fee will be added to bills.

Effective Jan. 1, 2023, water rates will increase another 8 percent and wastewater rates another 9 percent. The resaca fee will increase to $6.25.

The water rates will increase each Jan. 1 in 2024, 2025 and 2026 by 6 percent, 4 percent and 5 percent, respectively. Wastewater rates will rise by 9 percent, 4 percent and 5 percent according to the same schedule. The resaca fee will increase to $12.50 per month effective Jan. 1, 2026.

BPUB General Manager and CEO John Bruciak said the updated rates “allow BPUB to continue providing quality utility services to all of its customers now and into the future.”

“We rely on these funds to support ongoing growth and improvement projects that benefit our customers and the community,” he said.