New Braunfels Utilities reaches $36.8 million water agreement with Guadalupe Blanco River Authority

New Braunfels Utilities announced Oct. 1 an agreement with the Guadalupe Blanco River Authority that will grant water access to the local utility provider for at least the next 30 years.

Supplied by water from Canyon Reservoir, NBU purchased 8,350 acre-feet per year of water from the GBRA for a “firm water rate” of $147 per acre-foot, making it the largest water purchase in NBU history, according to an NBU news release.

“Not only is this water purchase agreement with GBRA the single largest water purchase in NBU’s history, the fact that we were able to secure the 8,350 AFY at $147.00 per acre-foot makes it the most economical purchase in its history by today’s pricing standards,” NBU Chief Executive Officer Ian Taylor said. “When you consider that the typical water purchase costs between $1,500-$2,000 per acre-foot, it helps to put the GBRA water purchase in perspective.”

Included in NBU’s 30-year, $36.8 million agreement are two optional 20-year renewals, the release said.

NBU began working on the agreement in June when the company was given Right of First Refusal to purchase Canyon Reservoir water supplies due to a prior agreement with GBRA.

“We are guided by our mission to enhance the quality of our community by providing innovative essential services to the community where we live, work, and play,” Taylor said. “We take seriously the trust our community places in our ability to comprehend future water demands and meet those demands. The GBRA water purchase highlights our commitment.”
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