Public Service Board approves EPWU budget

The Public Service Board has approved El Paso Water Utilities' budget for drinking water, wastewater, reclaimed water and stormwater services.

The PSB approved the budget at its regular meeting on December 14; it will be effective for the 2012-13 fiscal year which begins on March 1.

The budget decreases spending on operations – including energy, chemicals and salaries – by $2.1 million, while increasing spending on capital projects – including major infrastructure, facilities construction and equipment – by $6.4 million.

The $235.4 million budget includes key provisions that would allow the utility to meet the challenges of the ongoing drought, outfit facilities with back-up power generation to guard against interruptions caused by extreme temperatures or natural disasters, and prepare for growth while rehabilitating existing infrastructure.

To pay for those initiatives, the PSB approved a 3 percent increase to water and wastewater rates. The average monthly bill will increase by $1.18 beginning this spring.

"Even with the proposed rate increase, we are still looking at being among the lowest water and wastewater bills in Texas and the Southwest," said Chief Financial Officer Marcela Navarrete.

The rate increase will also allow the utility to increase cash reserves, allowing EPWU to maintain its AA+ bond ratings, which would keep future borrowing costs low.

The rate of the monthly stormwater fee will not change.