Understanding TMWA’s Cost of Service Study

Fair and Transparent Water Rates: Aligning Costs with Service

At Truckee Meadows Water Authority (TMWA), fairness is at the heart of how we set rates. Our 2025 Cost of Service (COS) study was designed to ensure that all customers — whether single-family households, apartment communities, businesses, or irrigation users — are paying their appropriate share of the cost of delivering safe, reliable water.

The COS study does not raise additional revenue for TMWA. Instead, it redistributes how costs are shared among customer classes so that no group is subsidizing another. This keeps rates equitable and consistent with American Water Works Association best practices.

What’s Changing

• Service Charges: Monthly service charges will increase for most meter sizes to reflect the capacity TMWA must maintain to serve each customer — regardless of how much water they use.
• Use Charges: Commodity (per-gallon) rates will decrease for most customers, especially at lower levels, keeping essential indoor water use affordable.
• Simplified Structures: Commercial customers will move to a single rate for all water use, and multi-family complexes will be charged per dwelling unit, ensuring fairness for all residents.

What This Means for You
The overall effect of these changes depends on your water use and the size of your meter.