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Consultant recommends 12.4% water/wastewater revenue increase for Bedford; wholesale TRA costs drive most of the rise
Summary
Rate consultant NuGen told the council Bedford faces rising wholesale costs from the Tarrant Regional Water District (TRA) and recommended a rate package that would raise water and wastewater revenue about 12.4% next year; NuGen estimated a typical summer bill would rise about $10.83 per month, with most of that tied to TRA pass‑throughs.
Consultant Chris Eckert of NuGen told the Bedford City Council on Aug. 7 that substantial increases in wholesale and wholesale‑pass‑through costs from regional providers are driving the need for higher water and wastewater rates.
Eckert said the city should plan an overall 12.4% revenue increase for the water and wastewater fund to preserve reserve levels, meet debt‑service coverage and keep the utility’s 90‑day cash‑on‑hand policy. Under NuGen’s recommended rate plan, staff estimated a typical summer household bill (about 11,100 gallons of use in the consultant’s sample) would rise by $10.83 per month to about $134.48; NuGen attributed roughly $9.37 of that increase to wholesale cost pass‑throughs from TRA.
Recommendations presented
- Tiered water pricing: NuGen proposed increasing the unit‑price differential between residential tiers from about 15% to 25% to strengthen the conservation signal and put more cost burden on higher users.
- Senior and commercial structure: The consultant recommended tying the senior minimum fixed charge to 90% of the regular residential minimum, and linking the commercial volumetric rate to the second residential tier to maintain consistency across customer classes.
- Pass‑throughs and reserves: NuGen said it is passing TRA increases into the volumetric (usage) portion of the rates so customers who use more water pay a larger share of TRA‑driven cost growth. The consultant showed Bedford’s reserves would fall below the city’s policy and debt coverage could be jeopardized without rate increases.
NuGen’s presentation put the largest driver of the proposed increase on TRA, noting that TRA’s budget included heavy capital investment and higher operating costs that are passed to member cities. “Costs are going up, rates are going up,” Eckert said, summarizing the regional trend and the need for predictable revenue to protect debt and reserves.
Customer impacts and timing
NuGen presented sample bills for summer and winter usage and for average commercial customers. The consultant and staff said the bulk of next year’s increase would appear in volumetric charges tied to wholesale costs; they also emphasized ongoing monitoring and the possibility future recalibration as TRA or other inputs change.
Nut graf: Bedford’s water and wastewater fund, where treatment and purchased water are the largest cost drivers, faces rising wholesale costs; consultants advised a targeted rate package that raises revenue by about 12.4% and shifts more cost recovery to volumetric charges so higher users — and wholesale pass‑throughs — cover a larger share of increases.
What council asked: Elected members asked about regional comparisons and whether TRA customers elsewhere use tiered pricing; Eckert said most peer TRA customers use tiered structures, though individual community factors make strict comparisons imperfect. Council members also asked how much of the sample bill increases were TRA pass‑throughs and how the proposed design affects seniors and commercial customers.
Ending: Staff said they will return with an ordinance and formal rate schedules for council consideration during the budget adoption process and will continue to monitor TRA’s billed cost trajectory.
