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Bee Cave council accepts 1.4785% PUC inflation adjustment to municipal telephone right-of-way rate

2917527 · April 8, 2025
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Summary

The council accepted the Public Utility Commission of Texas' 2025 consumer price index adjustment to the city's maximum access line rate for telephone right-of-way, a change staff said will raise about $250 annually; the motion passed 3–2.

The Bee Cave City Council on April 8 voted 3–2 to accept a 1.4785% consumer price index adjustment from the Public Utility Commission of Texas to the city's 2025 maximum access-line rates for municipal telecommunications right-of-way use.

City staff member Julie told the council the PUC letter applies only to telephone-line rates in a deregulated industry and does not affect franchise fees for other utilities. "They have an increase in there of 1.4785% due to inflation. This is really a increase in only the telephone lines," Julie said. She said the fiscal impact to the city would be about $250 annually.

Council members discussed the city—s longstanding rate and revenue implications; one councilmember estimated the gross annual collection subject to the adjustment is roughly $17,000 based on a back-of-the-envelope calculation made during the meeting. Staff noted the rate in PUC records had not changed since February 2007.

Under the city charter, the council is the only entity that can set these maximum access-line rates, Julie said. A motion to accept the PUC adjustment was moved and seconded; the council adopted the adjustment on a 3–2 vote.

The adjustment affects only the maximum access-line rate for telephone lines and does not change any franchise agreements the city has with electric or other utilities. The city did not amend any franchise-fee rates for other utilities at the meeting.