What Changed on Your June 2026 Bill

TMWA's Board of Directors has approved two related but distinct changes to your water rates: a modest annual rate increase to keep pace with the cost of delivering safe, reliable water, and an updated rate structure based on a thorough Cost of Service study. Both changes are reflected on your June 2026 bill.

This page explains both changes in plain language — what they are, why they were made, and what they mean for your bill.

Part 1: The Annual Rate Increase

Why TMWA adjusts rates regularly

TMWA's approach to rate adjustments follows a best practice recognized by the American Water Works Association: small, predictable increases over time rather than infrequent large jumps. This keeps your water reliable and affordable year after year — and avoids the financial disruption that comes from deferring necessary investment.

The current series of rate adjustments was approved by the Board following extensive public outreach and review by TMWA's citizen Standing Advisory Committee (SAC). Here is where things stand:

• May 2024 — 4.5% increase. Average winter bill increased approximately $1.24; average summer bill approximately $2.56.
• May 2025 — 4.0% increase.
• May 2026 — 3.5% increase. Reflected on your June 2026 bill, alongside the rate structure changes described below.
• 2027 and beyond — Annual index-based review. Each year, the Board evaluates whether an adjustment is needed. Unless a larger increase is required, any increase will fall within a range of 1.0% to 4.5%.

All revenues go directly toward operating, maintaining, and improving the water system. TMWA is a community-owned utility — there are no shareholders and no profit motive. Rates are set to cover costs, nothing more.

What impacts costs? Power, treatment chemicals, infrastructure maintenance, workforce, and debt service on the capital investments that built and continue to improve the 2,865 miles of pipeline and treatment facilities serving the Truckee Meadows.

Part 2: The Rate Structure Update

What is a Cost of Service study?

Alongside the annual adjustment, the Board also approved a new rate structure — how costs are distributed across different customer groups. This change is based on a formal Cost of Service (COS) study, the first for TMWA since absorbing the former Washoe County water system in 2015.

A Cost of Service study identifies the true cost of serving each type of customer and aligns rates with those costs. It does not increase total revenue — it only adjusts how existing costs are allocated fairly among customer classes. The study was conducted by independent consultant Hansford Economic Consulting, using the American Water Works Association's M1 industry standard, which has guided utility rate-setting since 1954.

What the study found

One key finding: TMWA's costs are roughly 43% fixed (infrastructure, pipes, and meters that stand ready to serve you regardless of how much water you use) and 57% variable (treatment, power, and chemicals tied to actual water use). The previous rate structure was collecting only 33% of revenue through fixed charges — the update better reflects the actual cost picture.

The study also consolidated the different rate schedules that existed when TMWA merged with the former Washoe County water system, creating a single, unified structure for all customers.

Watch: Public Meeting Recording — Cost of Service Study Overview

How the New Structure Affects Your Bill

Your bill change depends on your customer class, meter size, and how much water you use. Here is the general direction for each group. Impacts vary by individual account.

Single Family Residential — Modest decrease for most customers

84% of single-family customers have a ¾" meter. The new structure lowers Tier 1 and Tier 2 usage rates that cover typical household use. Tier 3 rates — for high-volume users — increase. For most single-family customers, the rate structure change will offset or exceed the annual 3.5% adjustment.

Multi-Family Residential — Modest increase

The previous meter-based charge is replaced by a per-unit customer charge, more accurately reflecting the cost of serving individual units. Tier 1 and Tier 2 usage rates decrease. The net effect is a modest increase for most multi-family accounts.

Irrigation Customers — Modest decrease

Updated peak and off-peak rates. Customers with a 2" meter (which accounts for 37% of irrigation accounts) will generally see lower bills at typical usage levels.

Commercial Customers — Modest increase

Commercial accounts move to a single uniform usage rate, replacing the current tiered structure. Customer charges are updated based on meter capacity. Small commercial accounts with ¾" meters will see minimal change.

Want to know your specific impact? Contact TMWA at COS@tmwa.com and staff can walk you through how the changes affect your account.

A note on multifamily affordability

The TMWA Board specifically discussed the potential impact on renters in multifamily housing. The TMWA Board requested that staff explore potential customer assistance programs as part of the upcoming budget process. TMWA is committed to ensuring water remains accessible and affordable for all members of our community.

How TMWA Makes Rate Decisions

Rate decisions at TMWA follow a defined public process with multiple checkpoints — they are not made without community input.

1. Annual Funding Plan review. Each year, TMWA staff compares projected revenues to projected costs. If a gap exists, a rate adjustment proposal is developed.
2. Standing Advisory Committee (SAC) review. A committee of TMWA customers reviews the proposal and makes a recommendation to the Board of Directors.
3. Public workshops. TMWA holds open-house workshops across the community so customers can ask questions, understand the changes, and submit comment.
4. Two Board readings. The proposal receives two readings at public Board of Directors meetings before a vote. Public comment is accepted at both.
5. Board vote and customer notification. If approved, changes are communicated to all customers in advance of taking effect.