The Lower Colorado River Authority (LCRA) Water Operations Committee convened on January 21, 2025, to discuss the proposed interruptible water rates for the upcoming calendar year. The meeting focused on the recommended rate changes for the Gulf Coast, Lakeside, and Garwood Agricultural Divisions, which are set to be considered for adoption at the board meeting scheduled for January 22.

The committee presented a 2.3% increase in water rates for the Gulf Coast and Lakeside divisions, bringing the rate to $77.79 per acre-foot. This increase reflects ongoing operational costs and the impact of previous curtailments. The Garwood division will see a slightly lower increase, with the proposed rate set at $44.98 per acre-foot. The adjustments are necessary to ensure the financial stability of the water operations, especially given the likelihood of curtailments in 2025.

In addition to the rate increases, the committee discussed changes to fees associated with excessive water use. These charges will increase to 40%, 80%, or 150% of the interruptible stored water rate for those exceeding their allocated volumes. Notably, the committee proposed eliminating the $100 application fee for rice or turf contracts, a decision influenced by feedback from local farmers.

The meeting also addressed the status of the rate stabilization fund, which currently holds $14.6 million. This fund is crucial for offsetting lost revenues during periods of curtailment. If curtailments occur in 2025, it is projected that $9.8 million will be utilized, leaving a balance of $4.8 million by year-end. Additionally, the Agriberserver fund, designed to mitigate rate increases, currently has a balance of $6.7 million, which may be depleted by 2028 if operations remain stable.

No new rule changes or drought contingency plans were proposed for 2025, indicating a focus on maintaining existing frameworks while adapting to the anticipated challenges of water availability. The discussions highlighted the ongoing efforts of the LCRA to balance operational costs with the needs of agricultural customers in the region.