Yesterday evening, the Tacoma Public Utilities Board voted to approve a preliminary budget and rates proposal. This proposal aims to maintain safe, reliable service to customers while balancing increased costs from inflation.
As a public utility, we set rates to cover the costs of essential services, which include maintaining our systems, protecting the natural resources near our hydroelectric and watershed facilities, complying with regulations, and investing in upgrades that improve operational efficiency and services.
Like utility providers throughout the region, we are facing rate pressures. Rising costs in areas such as insurance, materials, and supplies and the ongoing impact of losing our largest commercial water customer are driving rate increases for 2025 and 2026.
To manage rising costs, we need to increase our rates. By gradually increasing rates over time, we can prevent larger rate increases while still providing the services customers rely on.
The Tacoma City Council will vote on the rate proposal by the end of the year. If approved, residential customers will see a monthly rate increase of 6.5 percent each year for power and 6.3 percent for water. For the average customer, this means a monthly electricity bill increase of $6.72 in 2025 and $7.09 in 2026, and a monthly water bill increase in Tacoma of $2.86 in 2025 and $3.10 in 2026. Customers outside the City will see an average water increase of $3.46 per month in 2025 and $3.67 in 2026. Water bills will increase in January of 2025, when water supply is typically plentiful, and their electricity bills will increase in April of 2025, after winter’s peak power needs.
We offer a variety of ways for customers to manage their utility bills, such as monthly average payments through the Budget Billing program, autopay options, and payment plans. Income-eligible households qualify for discounts and credits on their bills and can apply at MyTPU.org/Assistance.
Electricity and water conservation can lower customers’ bills costs and be good for the environment. We also offer several ways to save on equipment upgrades that reduce usage. Loan programs are also available to help cover the cost of energy-efficient home improvement projects and private-side sewer and waterline repairs. Customers can learn more at MyTPU.org/WaystoSave.
Contact:
Jessica Wilson
253-753-3119
jwilson2@cityoftacoma.org