SAN ANTONIO – The San Antonio Water System (SAWS) plans to increase residential rates in 2026 to support a capital improvement plan focused on upgrades, the utility’s chief financial officer said during a Monday board meeting.
Doug Evanson, the executive VP and chief financial officer of SAWS, said that any rate increase would be the first for customers since January 2020.
Since the 2020 rate adjustment, SAWS has invested $2.2 billion in improvements without the need for a rate increase. Evanson said that cannot continue.
“In order to carry out the anticipated capital plan for 2026, I believe that rate supports will be needed to maintain our very strong credit metrics, which support our credit rating,” Evanson said.
Evanson stated that the utility company needs the rate support because of major projects that could cost approximately $600 million.
“The two major initiatives really fueling the projected 2026 capital improvement program are the wastewater master plan and the water stewardship initiative,” Evanson said.
In 2026, Evanson said that the utility plans to spend $340 million for improvements to multiple wastewater centers, which have been in service since 1965 and 1987. If no modifications are made, Evanson stated that SAWS could face permit violations.
SAWS also plans to invest $125 million into water distribution network improvements next year, according to Evanson.
“The current plan is to submit a ‘no rate increase’ proposed budget next month with a desired approval at the November board meeting,” Evanson said.
As a result of turnover with the San Antonio City Council and the board of trustees at SAWS, Evanson said that rate adjustment discussions will continue into 2026. The exact rate has yet to be determined.
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