Rate Information

The proposals show the estimated average monthly adjustment as a percentage and dollar amount. Actual monthly charges will vary based on use.

Tacoma Power

• 2027 – 6.2% or $7.40 monthly *
• 2028 – 6.2% or $8.59 monthly *

Rate adjustment goes into effect in April each year.

Tacoma Water

Inside City of Tacoma

• 2027 – 5.6% or $2.99 monthly
• 2028 – 5.6% or $3.17 monthly

Outside City of Tacoma*

• 2027 –  5.6% or $3.59 monthly
• 2028 – 5.6% or $3.74 monthly

Rate adjustment goes into effect in January each year.

*Rates in University Place are slightly higher due to a 6% utility tax from the City of U.P.

The proposals show the estimated average monthly adjustment as a percentage and dollar amount. Actual monthly charges will vary based on use.

Tacoma Power

Small General Business (B rate)

• 2027 – 8.1% or $12.52 monthly *
• 2028 – 8.1% or $15.16 monthly *

General Business (G rate)

• 2027 – 10.8% or $418 monthly *
• 2028 – 10.8% or $535 monthly *

Rate adjustment goes into effect in April each year.

Tacoma Water

Commercial

Inside the City

• 2027 – 5% or $19.86 monthly
• 2028 – 5% or $20.98 monthly

Outside the City of Tacoma

• 2027 – 5% or $23.80 monthly*
• 2028 – 5% or $25.12 monthly*

Parks & Irrigation

CCF (Variable)

• 2027 5.6%
• 2028 5.6%

Rate adjustment goes into effect in January each year.

*Rates in University Place are slightly higher due to a 6% utility tax from the City of U.P.

No, data centers are not driving the proposed rate adjustments. Power and Water rates are based on cost–of–service models. This means that customers pay rates that reflect the cost for the water and power they receive. Customer costs for one group are not spread among other customers.  

The main drivers for the rate adjustments in the 2027/2028 proposal rate are not related to population growth.   

Population growth generally allows the utility to spread its operating costs over a larger number of accounts. New service connection fees also help pay for infrastructure needed to support increased demand.  However, sustained population growth can increase utility costs. As the customer base expands, we must invest in system upgrades and capacity expansions to maintain reliable service. These improvements also lead to higher operation and maintenance costs.   

The primary drivers this biennium are cost increases for materials needed to maintain and enhance reliable service delivery. Operational costs continue to rise as we compete for specialized labor, invest in new technologies, and comply with evolving regulatory and legal requirements. 

Single-family residential customers within the City of Tacoma average 6 CCF (4,488 gallons) of water consumption during winter months (January through May and October through December) and 9 CCF (6,732 gallons) of consumption during summer months (June through September). 

Average residential consumption for electricity is approximately 965 kWh a month; usage may vary based on appliances, size, and dwelling type (apartment or single- family home).

Tacoma Power generates revenue by selling excess electricity in the wholesale market. However, these sales and revenue depend on market conditions, how much extra electricity is available, and the prices other utilities are willing to pay. Because Tacoma Power cannot control how much electricity it sells or the prices it receives, this revenue can vary significantly from year to year. Tacoma Water receives revenue from activities like timber and land sales, rental contracts, and temporary water supply contracts. Both Tacoma Water and Tacoma Power pursue low-interest loans, grants, and bonds to help mitigate rate adjustments.

Moving to 80% AMI is already factored into the current rate adjustments. 

Each operating division sets aside funds to help low-income customers and those who are infirm, as allowed by state law. These costs are shared across all customer classes, so the impact on any individual customer’s rates is minimal. Additionally, the state’s Clean Energy Transformation Act requires utilities to ensure that low-income households have access to an energy assistance program.  

While these programs are funded through customer rates, the vast majority of rate revenue supports the core operations needed to provide safe, reliable utility service.   

Tacoma Water anticipates that the proposed rate adjustments will generate approximately $21M in additional revenue over the upcoming biennium. 

Tacoma Power anticipates that the proposed adjustments will generate approximately $82M million dollars of additional revenue over the upcoming biennium.