Rate Information

2025-2026 Budget and Rates Process

This fall, our 2025-2026 budgets will go to the Public Utility Board and Tacoma’s City Council for approval. The proposals include rate adjustments for Tacoma Power and Tacoma Water. The Tacoma City Council will also review rate proposals for Environmental Services (Wastewater, Solid Waste, and Stormwater) after receiving recommendations from the Environmental Services Commission.

Tacoma Water rates will go into effect on January 1, and Tacoma Power rates will go into effect on April 1.

As part of the budget process, our staff participates in many public meetings to hear feedback and answer questions.

Click here to download a printable one-sheet of the residential rate proposals. 

Click here to download a printable one-sheet of the commercial rate proposals. 

Reasons for rate adjustments

As public utilities, we set rates to cover the costs of essential services. This includes the cost of providing safe, reliable services, maintaining our systems, protecting natural resources near our facilities, complying with regulations, and investing in upgrades that improve your services.

Primary factors affecting 2025-2026 rates:

• Increased costs to operate and maintain our systems
• Inflation in materials and supplies
• Ongoing impacts from losing one of our largest commercial water customers

Average utility construction costs have increased over 20-30% in the last three years. 

 We need to increase our rates to cover these higher costs. By gradually increasing rates over time, we can prevent large increases while still providing the services you rely on.  

How we manage costs

• Pursuing state and federal grants to fund projects that improve the customer experience, including:  
  • Bureau of Reclamation Water Smart Grant to offset the costs of advanced water meters.
  • American Public Power Association – Demonstration of Energy & Efficiency Developments paid for a Heat Pump Water Heating pilot in two Tacoma Housing Authority multi-family buildings.
  • The WA Department of Commerce (Public Works Board FY2023) helps cover the costs of a new water pump station at Fennel Creek.  
• Refinancing our loans and bonds to a lower rate so we pay less in interest. 
• Recycling and selling equipment and property we no longer need. 

How we address equity when planning rates

• Providing payment assistance programs for those in need.
• Delivering equitable services to customers and visitors.
• Working to reflect our community by hiring and retaining diverse employees.
• Coordinating with community groups to share information.

Ways to manage your bills

Budget Billing can help you manage your monthly budget.

Online payment resources provide several new options.

Power and water conservation can lower your costs and are good for the environment.

Payment assistance is available if you qualify.

Sewer conservation loans can help with private side sewer repair.