Municipalities respond to higher prices in 2015
On June 18 the Lower Colorado River Authority board of directors unanimously approved an increased raw water rate for firm water customers, effective January 2015.
Firm water customers include municipalities and water utilities, such as Lakeway MUD No. 1, and have first claim on the Highland Lakes stored water supply. Interruptible customers, such as downstream rice farmers, can have their water supply interrupted during water shortages.
The new drought rate, an increase from $151 per acre-foot to $175 per acre-foot for firm water customers, will be temporary and includes only the January through December 2015 billing cycles, LCRA Executive Vice President John Hoffman said. However, the rate hike may be reduced should the drought subside and revenue rises, he said.
The goal of the drought rate is the full recovery of LCRA's water operations costs, Hoffman said.
LCRA General Manager Phil Wilson said the rate increase was necessary because most LCRA interruptible customers have not received or paid for any stored water. He said that due to emergency restrictions, LCRA has been unable to fully recover its operating costs.
In February, LCRA proposed raising the water rate from $151 per acre-foot to $179 per acre-foot for firm water customers. However, as a result of public input, the LCRA rate hike recommendation for these customers was lowered to $175 per acre-foot, Hoffman said.
"We do have ongoing costs," LCRA board Chairman Timothy Timmerman said. "We haven't sold interruptible water, and that was a portion of our budget over the last few years. It's created a large hole, and we have to fill that hole. We have to cover our costs."
Local response
Don Rauschuber, general manager for the West Travis County Public Utility Agency, said the proposed water rate hike will result in an average monthly increase of $2.30—about 6.5 percent—in the bills of agency customers in 2015. He said the new drought rates will tally a total monthly rate increase of approximately $170,000 to customers in the WTCPUA service area.
"LCRA is requiring some firm raw water customers, like the WTCPUA, to heavily subsidize water released and delivered to LCRA's interruptible raw water customers, like downstream rice farmers," Rauschuber said. "As such, LCRA's raw water charges to paying firm raw water customers are unfair and discriminatory."
Drought of record avoided
LCRA officials predict the Highland Lakes will not hit their lowest levels in history until at least fall, meaning combined storage in lakes Travis and Buchanan will likely remain at more than 600,000 acre-feet, the point that triggers the drought of record. By fall El Nino weather patterns could bring drought relief similar to what the region experienced in 2009, LCRA Meteorologist Bob Rose said.
"We're not at El Nino yet, but we're getting really close," Rose said, explaining how water temperatures in the Pacific Ocean have slightly increased, typically resulting in a stronger storm season. "I'm very encouraged the weather pattern is going to change in September and October."
In the meantime Rose said he predicts the Austin area will struggle through another dry summer.
"That's not a great forecast, especially with such a serious drought like this," he said.
As of July 3 the Highland Lakes' combined storage stood at 793,650 acre-feet.
Should the lakes reach the drought of record, all LCRA firm water customers—including the cities of Austin, Bee Cave, Lakeway, Rollingwood and West Lake Hills—would be required to drop their water usage by 20 percent.
Some western Travis County municipalities have already begun to address water conservation.
On May 15 the WTCPUA approved a 20 percent drought surcharge on wholesale and retail volumetric rates for customers in the city of Bee Cave, Lake Pointe MUD and Hays County service areas.
On May 19, Lakeway Mayor Dave DeOme approved an emergency order granting residents the option to defer the city's landscaping requirements until lake levels increase. The following day City Manager Steve Jones stated that the city would not issue new swimming pool permits unless the applicant could show the water source intended to fill it came from a source other than the Lower Colorado River basin.
