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LCRA staff proposes 2026 interruptible irrigation rates, cites surcharges and use of ag reserve funds
Summary
LCRA staff told the Operations Committee it will propose a 2026 interruptible irrigation rate built from FY2025 actuals, recommending a 3% increase for Gulf Coast and Lakeside (relative to last charged rates), a projected ~9% decline for Garwood, and tiered surcharges for customers that exceed contracted duties. Farmer meetings and a January board decision were scheduled.
LCRA staff told the Operations Committee on Nov. 12 that it will present formal interruptible irrigation rates for calendar year 2026 based on FY2025 actuals and known adjustments, and that the proposal seeks to balance cost recovery with short‑term affordability.
John Hoffman, LCRA staff, said the methodology starts with last year’s actuals and applies measured adjustments for labor (about 4%), electricity, materials and a full year of Arbuckle operations. He told the committee that the agency allocates river‑management operating costs with a 78.7% share assigned to firm customers and 21.3% to interruptible customers. "We start with a test year — last year's actuals — and then make any known and measurable adjustments," Hoffman said.
The staff proposal would show a 3% rate increase for Gulf Coast and Lakeside…
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