Planning for growth From the cover
Put in perspective
What to expect
“There is an end in sight,” Kelso said. “When we reach build-out, we will transition to a state of just operating and maintaining and replacing aging infrastructure.” He said other utilities have ceased developing, but the need for NBU is still there.
The utility’s customer base is projected to grow steadily over a five-year period, but the growth is expected to plateau by FY 2030-31. Kelso said he expects it will be much easier for the utility to maintain its capital projects by the early 2030s.
The new rates, which took effect Aug. 1, will increase the average residential monthly bill by: • $16 a month for customers who receive electric, water and wastewater, and use water for essential indoor needs. • $26 a month for customers with electric, water and wastewater who also choose to water their lawns or landscapes. Rate increases typically pass every two years— which means that plans for Fiscal Year 2028-29 rates will be presented to council in 2027, NBU CEO Ryan Kelso said. “With the volatility that exists in today’s economy, it’s difficult to plan longer than two years in advance with the way prices have moved,” Kelso said.
Customer growth The number of customers served by NBU is projected to increase by 25.3% from 2026-2030.
Electric
Water
Sewer
Number of customer accounts
Actual growth
Forecasted growth
+25.3%
+27.5%
50K 100K 200K 150K 250K
Average utility bill increase The rates for fiscal year 2026-27 took effect Aug. 1.
Irrigation
Electric
Wastewater
Water
0
Total: $26.16
2020-21 2021-22 2022-23 2023-24 2024-25* 2025-26 2026-27 2027-28 2028-29 2029-30
Fiscal year
NOTE: NBU'S FISCAL YEAR BEGINS AUG. 1 AND RUNS THROUGH JULY 31 OF THE FOLLOWING CALENDAR YEAR.
*FY 2024-25 SHOWS ESTIMATED VALUES.
$9.75
Digging deeper
Reagan Peña, said if NBU waited 10 years to begin work, rates would be much more expensive. “When you look at some of the other companies that are not doing this, you have to wonder … are they even taking care of their stuff?” Peña said.
The new rates will help fund current and future infrastructure. NBU has an obligation to provide continuous, adequate service to new and existing customers within its territory, but that territory is approaching build-out, Kelso said. NBU’s Director of Enterprise Communications, Ongoing projects contributing to rates 1 Hueco Springs Substation • $14.23M • Timeline: FY 2024-FY 2026 2 Gruene Road Sewer Rehabilitation • $5.98M • Timeline: FY 2021-FY 2026 3 McKenzie Water Reclamation Facility • $91.89M • Timeline: FY 2021-FY 2027 4 Kuehler Water Reclamation Facility Rehabilitation • $72M 5
Total: $16.41
$7.25
$7.25
5
306
$5.39
$5.39
1
2
35
5
5
46
337
5
$3.77
$3.77
5
4
46
With irrigation
Without irrigation
• Timeline: FY 2020-FY 2028 5 Water Tank Rehabilitations • $19.72M • Timeline: FY 2024-2029
New Braunfels
GUADALUPE RIVER
SOURCE: NEW BRAUNFELS UTILITIES/COMMUNITY IMPACT
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3
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22
COMMUNITYIMPACT.COM
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