RCH Announces FY 2026 Water Rate Update

Dear RCH Members,

As we enter the final quarter of 2025, I want to thank each of you for your continued trust and partnership. Your conservation efforts, engagement, and support have helped us make significant progress on several key initiatives — including construction of our new North Texas Municipal Water District (NTMWD) connection and pump station, which will begin delivering water to RCH members in mid-2026.

RCH routinely conducts a comprehensive Water Revenue Sufficiency Study to ensure we can maintain reliable operations, meet our lender obligations, and reinvest in infrastructure that keeps our water system healthy and sustainable. RCH’s Board of Directors held a public meeting on October 7, 2025, where this year’s rate study, conducted by NewGen Strategies & Solutions (“NewGen”), was presented. The October 2025 study confirms that modest rate adjustments are necessary beginning January 15, 2026, to meet these goals.

Why a Rate Adjustment Is Needed

Based on NewGen’s analysis, a rate increase is necessary to meet the financial demands of the growing utility and services operations. NewGen has advised the Board that, to meet RCH's projected operational expenses, debt service, and reserve needs, adjustments to our rates are necessary to ensure continued reliable service, deliver new water supply, and confirm sufficient reserves for future infrastructure needs. Without a rate update, RCH would face a deficit in FY 2026, as construction and operating costs continue to rise alongside ongoing investments in critical infrastructure. To fund these project needs and align rates with actual customer usage, the Board approved a new rate structure that provides a stable financial base for the foreseeable future while maintaining sound financial benchmarks. As new connections come online, this growth will broaden our rate base over time and help moderate future adjustments.

As Cesar Baptista of NTMWD noted in “The Price of Reliable Water: How Rising Construction Costs Impact Water Rates,”

“Construction materials have been rising for the past several years… creating a ‘perfect storm’ that is making building costs increase more rapidly.”

NTMWD itself is investing $1.77 billion in capital improvements in FY 2026, and those rising wholesale costs affect all member systems and the utilities that purchase water from them, including RCH. These pressures are regional, not unique to us, and reflect broader shifts in water infrastructure costs.

New Rate Structure (Effective Jan 15, 2026)

The updated structure introduces six volumetric tiers to ensure that costs are distributed fairly and that high-volume users pay proportionally for the additional strain placed on the system.

Base Availability Fee (5/8” meter): $46.50/month
Temporary Legal Surcharge: $5.14/month (continues through January 2027)

Example Monthly Bills (5/8” meter):

• 10,000 gal ≈ $130/month

• 13,000 gal ≈ $157/month

• 18,000 gal ≈ $212/month
  
  

These rates enable RCH to fund system maintenance, strengthen reserves, and meet the required financial obligations, while maintaining regionally competitive rates.

How We Compare

Even with this adjustment, RCH remains competitively priced in our area for comparable residential service.

Based on publicly available rates as of October 2025 (13,000 gallons/month, 5/8” meter), RCH customers will continue to pay less than neighboring utilities served by or purchasing through NTMWD and elsewhere.

_{*Includes $5.14 McLendon Chisholm legal surcharge}

_{** indicates systems that purchase water from or through NTMWD}

RCH’s new rates position us lower than Terrell, Mt. Zion, Elmo, and Lawrence, all while funding infrastructure improvements that enhance reliability, pressure, and long-term capacity.

Your Investment at Work

The rate update directly supports our five-year, $48.5 million capital plan, which includes:

• Completion of the NTMWD pump station and transmission line (target: July 2026)

• Highway 205 waterline size upgrade and relocation to improve system resilience

• Ongoing replacement and reinforcement of storage tanks, valves, and distribution mains

• Expansion of our digital meter program, now nearly complete, providing accurate readings and faster leak detection
  
  

Putting It in Perspective

For most households, this change amounts to roughly $12–$19 per month. About the cost of two cups of coffee a week, to secure reliable water for decades to come. Water remains one of the most affordable and essential services we depend on daily, costing less than the average household cell phone or internet bill.

RCH remains steadfast in its commitment to operate transparently, plan responsibly, and reinvest wisely in the future of our community.

Thank you for your continued support and trust in RCH Water Supply Corporation.

Sincerely,