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New Braunfels Utilities entered the first year of its City Council-approved two-year rate plan for Fiscal Years 2024 and 2025 on August 1, 2023. The new rate plan will help fund the costs of the 161 capital improvement projects currently in design or in progress for FY’s 2024-2028, enabling NBU to continue reliably serving essential services to our growing community.

As a nonprofit entity, New Braunfels Utilities’ rates are designed to cover the cost of providing essential services and upgrading and expanding existing infrastructure to support the needs of our community.

Your Guide to Understanding NBU's New Rate Plan

View the in-depth guide to understanding NBU’s FY’s 2024 and 2025 rate plan featured in New Braunfels’ Community Impact newspaper.

Understanding NBU’s New Rate Plan

Pictured: NBU’s Hortontown Substation.


The electric rate design provides for the electric utility’s revenue sufficiency, rate-setting equity, and financial stability and strength, reducing the debt needed to cover costs and ensuring flexibility.

Overall, electric rates will increase by an average of 4.8% in FY 2024 and 5.9% in FY 2025. These amounts are driven primarily by the costs of building and maintaining electric infrastructure to meet electric consumption needs. Capital needs for infrastructure are the most significant driver at 67%, with personnel and operating and maintenance expenses driving the remaining 33%.

On April 10, 2023, the New Braunfels City Council adopted Ordinance No. 2023-416, establishing electric rates and charges for Fiscal Year 2024 beginning on August 1, 2023, and Fiscal Year 2025 beginning on August 1, 2024. As required by Texas Utilities Code Section 33.103, this report states the effect of the ordinance on each class of ratepayer.

Customer ClassAverage Bill Increase (FY 2023 to FY2024)Average Bill Increase (FY 2024 to FY2025)
Small General Service6.7%6.7%
Large General Service7.3%8.6%
Very Large Power5.7%7.3%
Second Feeder Service39.0%29.2%
Lighting Athletic Fields17.9%15.4%
Interstate Highway Lighting0.0%0.0%
Area Lighting     0.0%0.0%
Pictured: NBU’s Trinity Wellfield and Water Treatment Plant.


The NBU system’s water infrastructure remains our most significant and costly community investment, and the approved water rate design includes the most significant changes. The two-year rate plan removes the current peak/off-peak season monthly charge distinctions from water rates to simplify the rate structure. The water volume charge usage tiers have been modified for residential, small general service, and irrigation to more appropriately match the usage levels of the customers in each class.

Water rates will increase by an average of 9.1% for FY 2024 and 13.4% for FY 2025. These changes are driven primarily by the costs to put acquired water supply into service and build infrastructure to keep up with growth and meet regulatory requirements. Capital needs for infrastructure are the most significant driver at 84%, with personnel and operating and maintenance expenses driving the remaining 16%.

Pictured: NBU’s Gruene Water Reclamation Facility.


The wastewater rate design was closely aligned with the cost of service analysis and includes increases in FY 2024 and 2025. The two-year rate plan reflects the need to recover sufficient costs to continue operating the system and meeting regulatory requirements.

Wastewater rates will increase by an average of 7.3% for FY 2024 and 7.3% for FY 2025. These amounts are driven primarily by the need to build and maintain infrastructure to meet regulatory requirements. Like NBU’s water line of business, the primary driver for additional revenue is capital at 87%, with operating and maintenance and personnel driving the remaining 13%.

Rate Increase: Q&A