The San Antonio Water System in 2023 will lower monthly bills for 83% of residential water customers across Bexar County and surrounding areas as well as restructure and reduce rates for SAWS users enrolled in the utility’s Affordability Discount Program.

The San Antonio City Council on Nov. 10 unanimously approved the recommendations and SAWS’s new $978.8 million budget—the utility’s biggest-ever budget.

SAWS President and CEO Robert Puente told the council the updated rate structure will partially help to cut most residential users’ water bills and ensure many commercial water customers pay their share.

Those are some of the significant moves resulting from recommendations made by the SAWS’s Rate Advisory Committee, a panel of appointed residents representing their respective City Council district or part of the SAWS’s customer base who performed the city-owned utility’s first rate and fee review since 2015.

RAC members felt increasing affordability for most SAWS users was the top objective, even more vital than incentivizing conservation, Puente said.

“The group as a whole could have and was given the option to say conservation was the most important thing, or simplicity of the [water bill] was the most important thing, but collectively they decided affordability for essential use was the most important thing,” Puente said.

Residential users

According to 2023 plans for the SAWS, •the average residential customer will get an 8.7% reduction in their total monthly bill from the $66.68 to $60.88.

This dollar figure, SAWS officials said, reflects a resident’s average water and wastewater monthly use, which is 6,275 gallons of water and 5,052 gallons of wastewater.

Officials said the fixed charge, or base water-use fee, will be reduced up to 20% for all residential customers in 2023.

Offering an example, the SAWS is dropping the monthly base charges from $10.25 to $9 for residents who use less than 4,000 gallons a month and from $12.82 to $11 for those who use more than 4,000 gallons monthly. Residents’ monthly base wastewater fee will also drop from $14.53 to $10.

Overall, the SAWS’s fixed charges vary depending on the size of the water customer’s meter. Within the limits of an incorporated city inside the SAWS service area, the smallest monthly charge will be $9 on a five-eighths of 1-inch meter, and the largest monthly charge will be $52.02 on a 2-inch meter.

The SAWS is also cutting the number of tiers from eight to five in their water/wastewater rate structure, resulting in a maximum 16% reduction in water bills for customers who use less than 9,000 gallons per month.

The new residential water tiers, measured in gallons per month, are zero-4,000; 4,000-7,000; 7,001-12,000; 12,001-20,000; and 20,001 or more. Mary Bailey, the SAWS’s vice president of customer experience, said in a Nov. 1 meeting the RAC’s recommendations mostly emphasize making water use more affordable.

“This was achieved in large part through a 20% reduction in •residential fixed charges,” Bailey said.

Users consuming more than 9,000 gallons monthly will generally see higher bills in 2023, according to the SAWS. Utility officials said customers who use between 9,000-11,000 gallons a month could see up to a 2% increase in their monthly water bill, and customers using 12,000 or more gallons monthly could see a 7% or 8% hike in their bill.

“Supporting our community’s focus on water conservation, stronger price signals will be sent on water usage over 9,000 gallons,” Bailey said.

Additionally, SAWS officials said all residential users will see the wastewater portion of their monthly bill lowered from as much as 32% to about 4%, as the number of tiers in the wastewater rate structure were cut from three to two.

Bailey said the RAC found that the utility was overcharging residents for wastewater services, so the SAWS opted to comprehensively reduce residential sewer charges.

Commercial users

Whereas SAWS plans to impose generally lower charges on most residential water and wastewater connections, the utility said many business, industrial and multifamily community customers—all classified as general class users—could see a slight increase in their monthly bill.

Bailey said the SAWS is not changing its rate structure for general class users, adding that general class rate blocks are tied to the customer’s use as a percentage of their average monthly use in the prior year.

“Under this structure, very consistent users pay the lowest rate, while customers who peak in their usage pay higher rates, which is consistent with cost of service principles,” she said.

Most general class customers will see an average 7% rise in their monthly bill in 2023. Bailey added that general class customers who use 1,000 gallons or less per month will receive a 2% reduction in their bill, whereas commercial, industrial and multifamily ratepayers who use more than 1,000 gallons monthly will see a 2% or 3% increase on their bill, Bailey said.

Average general class users will see their fixed water and wastewater charges go down from $14.07 and $14.59 to $12.70 and $10, respectively.

Increased affordability

SAWS officials also said they are streamlining how they impose charges on certain low-income residential users by replacing the existing residential discount program with a separate affordability rate structure. This, utility officials said, will result in no rate changes for about 34,500 enrolled households.

SAWS will not impose a monthly charge for enrolled households for the first 2,000 gallons of water. Affordability program households surpassing 2,000 monthly gallons will be subject to a $3 monthly fixed charge.

By comparison, the fixed water charge for affordability program households will be 66% lower than the charge for residents not enrolled in the affordability program using more than 2,000 gallons monthly, SAWS officials said.

“Recommendations related to SAWS’s affordability program are truly groundbreaking and will have a significant impact on keeping water and wastewater services affordable for our most vulnerable customers,” Bailey said.••San Antonio city leaders praised the SAWS’s rate plan.

“I think this is brilliant. I can’t find a flaw in this,” District 8 City Council Member Manny Pelaez said at the Nov. 10 council meeting.

Additionally, generally higher commercial rates did not deter business advocacy organizations, such as the San Antonio Chamber of Commerce and the San Antonio Hispanic Chamber of Commerce, from backing the SAWS’s rate plans.“

These recommendations will allow [the] SAWS to maintain infrastructure and fund capital improvements while also providing affordable water services to San Antonio residents,” SAHCC President and CEO Marina Gonzales said.