LCRA proposes 3% increase for Gulf Coast and Lakeside interruptible rates; Garwood rate falls

Kelly Payne presented proposed interruptible agricultural water rates for calendar year 2026, which staff said would be considered by the full board later the same day.

For Gulf Coast and Lakeside divisions, staff proposed a rate of $71.52 per acre-foot, a 3% increase relative to the last time customers were charged. Kelly explained that the Garwood division’s weighted-average rate would be $40.72 and that the decrease stems from higher forecast billing units (a three-year average) rather than a reduction in underlying costs.

Payne described excessive‑use charges that apply when deliveries exceed allowable use: surcharges priced at an additional 40%, 80% or 150% of the interruptible stored water rate depending on the volume of excessive use. Minimum contracting charges were noted for some divisions; Garwood’s minimum charge was unchanged.

Staff said draft rate documents were posted for public comment from Dec. 11 through Jan. 9 and that the interruptible stored water availability determination will occur on March 1, 2026 as part of decisions tied to storage and basin conditions under the 2020 water management plan.

Public commenter Shannon Hamilton asked that LCRA not conflate agricultural water use with waste and urged protection for in‑basin firm customers; staff reiterated engagement with stakeholders and use of the ag reserve fund to mitigate sharp rate increases when funds remain available.

The board discussed the trade-offs of rate certainty for farmers and the unpredictability of interruptible supply during drought conditions. The staff recommendation will appear on the full board agenda for adoption.