Rate Information
Budget and Rates Process
As a public utility, 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, supporting a specialized workforce, and investing in upgrades that improve your services.
We operate on a biennial budget cycle. This fall, our 2027-2028 budget will go to the Public Utility Board and Tacoma’s City Council for approval. Our proposal will include rate adjustments for water and power. Rate adjustments for Wastewater, Solid Waste, and Stormwater are prepared by Environmental Services.
What Rates Cover
How We Control Rates
Factors Impacting Rates
Infrastructure costs continue to rise as utilities work to maintain and improve essential systems. This includes ongoing pole replacements, upgrades to electric system equipment such as transformers, and routine substation maintenance. Water systems also require significant investment including drinking water main and pipe replacements.
Operational costs are increasing as well. Utilities face growing competition for specialized labor, need to invest in new technologies, and are adapting operations to address the impacts of climate change. Regulatory and legal requirements continue to evolve, adding complexity and cost. In addition, rising health care expenses contribute to overall operational pressures.
Together, these factors influence the rates needed to maintain safe, reliable, and sustainable utility services.
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