BY AMIRA VAN LEEUWEN
Another viewpoint
In comparison
like Guadalupe Valley Electric Cooperative, Austin Energy and CPS Energy. NBU comes in second place at having the highest wastewater rates, which are priced at $70. However, when it comes to water rates, NBU is the second lowest, with a price of $37.
In February 2021, Winter Storm Uri dumped a record amount of snow in Texas, leading to ultra- low temperatures, which caused millions of Texans to lose power, according to the Texas Division of Emergency Management. The storm came at a price tag of $95 million in five days, where the utility would typically spend $90 million in power costs over a year, Kelso said. Electricity demand nearly doubled from customers heating their homes, and market prices hit the Electric Reliability Council of Texas, or ERCOT’s, market cap at the time of $9,000 per megawatt-hour for several days. NBU did not have adequate cash reserves to pay that bill. As a result, the utility had to issue a short- term taxable note of $50 million with J.P. Morgan to cover its obligations. NBU officials withdrew $45 million in cash from the utility’s general fund and a small reserve fund they had at the time for power. The $45 million, combined with the $50 million taxable note, was enough to pay ERCOT, Kelso said. After paying ERCOT, the utility had to recover those funds from customers over a two-year time period. By the end of 2023, NBU had replenished its accounts, whereas other utilities decided to recover those funds over a 30-year period. Now, NBU officials are intentionally building a dedicated reserve so they are prepared if another storm of similar magnitude occurs again. NBU engaged an expert in the national power market to analyze and model numerous stress cases, which indicated that a $95 million reserve would provide protection against extreme market volatility for customers. This would be reflected on a customer’s bill as “Replenish Reserve.” In summer 2022, NBU itemized this charge on customer bills, but the utility began collecting reserves in January 2020. At its current funding pace, the utility expects to reach its target reserve amount by 2028, accord- ing to NBU officials.
NBU’s monthly bill includes four utilities in one and is comprised of electric, water and wastewater, along with the city of New Braunfels’ solid waste and recycling. As of July 2025, NBU electric rates are lower than those of surrounding electric companies
Water rates comparison
Electric rates comparison
Entity
Cost
$133 Brownsville Public Utilities Board $128 Seguin
San Antonio Water System
$37
New Braunfels Utilities
$38
Schertz
$47
San Marcos Electric Utility
Garden Ridge
$52
$146
Seguin
$57
$150 Pedernales Electric Cooperative
Green Valley
$57
San Marcos
$59
New Braunfels Utilities
$151
Cibolo
$70
$156 Guadalupe Valley Electric Cooperative
Kyle
$80
Crystal Clear
$130
Austin Energy
NOTE: AS OF MAY 2025. WATER RATES ARE UPDATED QUARTERLY. BASED ON AVERAGE OF 6,000 GALLONS (DEPENDENT ON SIZE/USAGE/WEATHER)
$158
CPS Energy
Wastewater rates comparison
$163
Entity
Cost
NOTE: AS OF JULY 2025. ELECTRIC RATES ARE UPDATED MONTHLY. BASED ON AVERAGE USE OF 1,200 KWH (DEPENDENT ON SIZE/USAGE/WEATHER) $253 Ambit Lone Star Flex $236 GEXA Premium Plus 12 $221 TXU Energy Rate Simple 12 $205 Reliant Secure Advantage $172 Boerne
San Antonio Water System
$27 $31 $41 $43 $53 $55 $70 $74
Cibolo
Kyle
Schertz
San Marcos
Seguin
New Braunfels Utilities
Guadalupe-Blanco River Authority
NOTE: AS OF MAY 2025. WASTEWATER RATES ARE UPDATED QUARTERLY. BASED ON AVERAGE OF 4,600 GALLONS
Offering input
King said he was a banker and senior financial executive in the industry before his retirement, and with an enterprise value, or the utility's total value, exceeding $1 billion, the city could defease its debt. However, the utility does not calculate an enterprise value because it is a nonprofit, NBU officials said.
“There’s a lot of ways you can save energy, and it’s working for me. But everybody’s household needs are different,” Kennedy said. Resident Bob King said he thinks the city has a “fiduciary obligation” to its residents to consider privatizing NBU.
In an email to Community Impact , resident Kara King said she thinks NBU keeps raising its utility prices because it wants to spend money on other projects that are not within its budget. Yolanda Kennedy, an NBU customer, said she has adjusted to the rate increases.
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NEW BRAUNFELS EDITION
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