Tacoma committee forwards utility fee adjustments for Tacoma Water and Tacoma Power to full council

The Government Performance and Finance Committee on March 4 voted to forward proposed amendments to Tacoma Public Utilities’ fee schedules and related Tacoma Municipal Code language to the full City Council for consideration.

Tacoma Water and Tacoma Power staff told the committee the changes are intended to recover additional operating costs from the customer groups that cause those costs rather than from all retail customers. Ryan Cox, assistant division manager for Tacoma Water’s customer experience team, said, “we determined that the proposed TPU policy changes are necessary to collect the additional expenses from the customer group that initiated the charges rather than collecting from all of the retail customers.” Heather Pennington, Tacoma Water superintendent, and Chad Edinger, electrical services manager with Tacoma Power, joined Cox for the briefing.

Why it matters: The utilities said the package will better align cost recovery with cost causation and stabilize retail rates. Tacoma Water estimates the revisions would raise about $1,400,000 annually; Tacoma Power estimated roughly $650,000 in additional annual revenue if the fee adjustments are approved. Staff recommended the committee move the proposal to council with an effective date of April 7, 2025, if adopted by council.

Discussion and key details

Staff described changes to fee tables and to several Tacoma Municipal Code (TMC) definitions and sections. Cox and Pennington said edits touch definitions, private contract charges, water service construction charges, fire hydrant relocations, system development charges, water main charges, and ownership of water mains and appurtenances. The presentation said the asset definition for contributions in aid of construction was expanded to explicitly include overhead and taxes and that five-year cost tables were updated to reflect additional operating costs.

On the power side, Edinger said the requested updates to TMC sections (staff referenced chapter numbers during the briefing) would recover administrative and operating costs tied to electrical permits, inspection fees and disconnect/reconnect work. He said the proposed power fee changes would supersede fee adjustments previously approved in December that were scheduled to take effect in April.

Committee members asked for details on timing, cost drivers and staffing. Councilman Romano asked why the changes were being proposed now; Tacoma staff said the utility reviews fees on roughly a two‑year cycle and that the December rate actions reflected an earlier review cycle. Vice Chair Bushnell asked about an added position for Tacoma Power; Edinger said the fully loaded annual cost of the additional full‑time equivalent (FTE) inspector — including vehicle and administrative overhead — is about $150,000 and that the increase helps cover that cost. Edinger added, “We have seen a need to add an additional inspector.”

Members pressed about engineering workload tied to infill work and the Home in Tacoma initiative. Pennington described a new services engineering group of seven engineers, five of whom have been hired in the last two years; staff said the utilities have also contracted with an engineering consulting firm for part‑time support while new staff are trained.

Several committee members asked whether advanced metering infrastructure (AMI) reduces truck rolls for disconnects. Edinger said AMI allows remote disconnects for some account actions but that for many electrical and some water service changes staff still must perform physical disconnects or meter pulls. Pennington said Tacoma Water’s AMI meters do not provide remote shutoff for water service.

Votes and motions

A member moved to forward the proposed amendments to Tacoma Municipal Code chapters cited during the briefing to full City Council for consideration; the motion was seconded and adopted by voice vote with no opposition recorded. A second motion to forward an additional cited code amendment to council was likewise moved, seconded and adopted. Committee members were told the first reading before full council is scheduled for March 18, 2025.

What was not decided

The committee vote was procedural (forwarding the proposal to full council); the committee did not approve or adopt the fee changes themselves. Final adoption and the effective date of any changes depend on council action.

Looking ahead

Staff said they discussed the proposed changes with industry groups including the Master Builders Association and with the Public Utility Board during study sessions. Committee liaison Angela Baker listed upcoming agenda items including commercial rate modifications, a possible Bonneville Power Administration contract negotiation update, a monthly budget update and a Tacoma Power financing briefing at future GPFC meetings.

Ending

The committee forwarded the utility fee amendments and related TMC language to the full City Council for consideration; council members will vote on the ordinances at a future council meeting, with a first reading scheduled for March 18, 2025, according to staff.