Council adopts settlement with Southern Utilities to align in‑city tariff, remove surcharge

City of Tyler City Council · January 28, 2026

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Summary

City council approved an ordinance adopting a settlement with Southern Utilities Company that removes an inapplicable surcharge, aligns the tariff with the Tyler plumbing code, and sets new rates effective April 1; Dietz said 232 in‑city accounts are affected.

Kate Dietz, Utilities Director, presented a settlement agreement and proposed tariff for Southern Utilities Company customers inside the Tyler city limits. Dietz said Southern filed to raise rates and that the settlement removes a surcharge included in Southern's original tariff that was not applicable to in‑city customers. She told council that currently Southern's in‑city customers pay $22.82 per 5,000 gallons, that Southern had proposed $39.55 per 5,000 gallons, and that the City of Tyler's rate is $37.05 per 5,000 gallons. Dietz said there are 232 residential accounts inside the city served by Southern out of approximately 23,000 accounts the company serves overall.

Under the settlement, Dietz said Southern agrees to match any lower PUC‑approved rates outside Tyler and will align its tariff with the Tyler plumbing code. Dietz said the new rates will take effect April 1. No customer protests were reported in the meeting transcript. The council adopted the ordinance by voice vote.