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Brazos River Authority ratifies 2025 two-tier replacement water rates

2154364 · January 21, 2025
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Summary

The board ratified 2025 rates for election (activated) and option (reserved) use under long-standing two-tier replacement water agreements: $30.76 per acre-foot for election use and $15.38 per acre-foot for option use.

The Brazos River Authority Board of Directors on Jan. 27 ratified the authority's 2025 replacement water supply two-tier rates, setting the election (activated water) rate at $30.76 per acre-foot and the option (reserved water) rate at $15.38 per acre-foot.

Michelle Giroir, BRA chief financial officer, explained these two-tier agreements — established in a negotiated settlement from a 1991 rate case — contain formula-driven adjustments that require use of the Consumer Price Index for November each year. The authority has 13 two-tier agreements totaling 98,999 acre-feet, representing roughly 14% of contracted acre-feet under BRA management.

Giroir said staff sent proposed rates to two-tier customers in December and would invoice customers once the board ratified the rates. A director asked whether customers had provided feedback after the December notice; Giroir said staff did not receive responses.

The resolution ratifying the 2025 rates passed by roll call. The board approved invoicing under the new rates once the resolution became effective.