KPUB moves to keep electric rates steady amid flood recovery

The Kerrville Public Utility Board approved its fiscal year 2026 budget Tuesday, keeping electricity rates unchanged as the community continues recovering from devastating Hill Country floods.

The decision provides economic relief for families and businesses while the utility maintains investments in infrastructure and system reliability.

“Our customers are at the heart of every decision we make,” said Mike Wittler, KPUB general manager and CEO. “Keeping rates steady for FY2026 allows us to provide meaningful relief today while still making the disciplined investments needed to ensure safe, reliable service and long-term stability for our community.”

To maintain steady rates, KPUB’s board of trustees authorized monthly transfers from the utility’s Rate Stabilization Fund during fiscal year 2026. The move allows KPUB to defer a base rate increase recommended in its 2025 Cost of Service Study.

Wittler cautioned that rate stability cannot be absolutely guaranteed because significant portions of wholesale power costs are passed through to customers and are influenced by natural gas prices, which are projected to increase.

KPUB serves approximately 24,500 customers across a 146-square-mile area that includes Kerrville, Center Point, Ingram, Hunt and surrounding areas in Kerr County. The utility was acquired by the City of Kerrville in 1987.

The utility purchases power from diverse competitive sources and consistently delivers some of the lowest electricity rates in Texas and the United States, according to the budget announcement.

KPUB provides electric service with fewer outages than the national average and has earned national recognition from the American Public Power Association for customer satisfaction, financial transparency, safety, community service and workplace excellence.

The utility has received national recognition for excellence in financial reporting for 31 consecutive years and continues to meet or exceed national financial benchmarks for utilities of similar size and region.

KPUB is overseen by a five-member board of trustees who serve without compensation and are responsible to the city for management and control of the system.