Tacoma’s City Council voted to approve Tacoma Public Utilities’ 2025-2026 biennial budget and rates proposals, previously approved by the Public Utility Board on October 23. Tacoma Public Utilities’ budget and rates go directly to providing services to customers. The approved budget focuses on the things customers care about the most, including continued reliability and safety. It ensures that TPU can continue to maintain its systems, protect natural resources at its facilities, comply with regulations, and invest in upgrades to improve services.
Tacoma Public Utilities is a not-for-profit, customer-owned utility that only charges for costs of providing services. Inflationary pressures have driven up costs for the utility. For instance, the cost to construct and maintain utility infrastructure, such as power transformers and water reservoirs, has risen with supply chain constraints, and other costs such as fuel and insurance have been impacted by inflationary pressures.
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 $2.88 in 2025 and $3.09 in 2026. Customers outside the City will see an average water increase of $3.48 per month in 2025 and $3.67 in 2026.
Tacoma Public Utilities provides residential assistance programs as a part of the approved budget for customers who need it most. The total aid available for income qualified households will increase from $1,107.60 in 2024 to $1,191.60 in 2025 and $1,227.60 in 2026, helping to offset rate increases for those who qualify. The amount of aid is based on the number of utility services billed to the household. Customers can learn more about TPU’s assistance programs and apply at MyTPU.org/Assistance.
Water bill increases will take effect in January 2025 when water consumption is typically lower, and power bills will increase in April 2025 following winter’s period of highest power demand.
Contact:
Jessica Wilson
253-753-3119
jwilson2@cityoftacoma.org