Texas public power utility Kerrville Public Utility Board has approved its Fiscal Year 2026 budget, keeping rates steady to provide economic relief for families and businesses recovering from the devastating Hill Country Floods, it said on Sept. 17.
KPUB noted it is helping reduce financial pressures on the community during a critical period of rebuilding while continuing to deliver safe, reliable, and affordable power at the lowest responsible price.
“Our customers are at the heart of every decision we make,” said Mike Wittler, KPUB General Manager & 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. It is important to point out that this effort to keep customer costs steady cannot be absolutely guaranteed because significant portions of our wholesale power costs are passed through to customers and they are strongly influenced by the cost of natural gas, which is projected to increase.”
To make this possible, KPUB’s Board of Trustees authorized monthly transfers from KPUB’s Rate Stabilization Fund during fiscal year 2026. This action enables KPUB to defer the base rate increase recommended in its 2025 Cost of Service Study and continue supporting customers as the community recovers from the floods. The FY2026 budget reflects KPUB’s commitment to fiscal discipline and responsible stewardship.
"The utility is maintaining financial strength, meeting national benchmarks, and advancing essential investments in system reliability. This balance ensures customers benefit from immediate relief today without sacrificing the system improvements that keep the lights on safely and reliably for our community," it noted.
KPUB’s electric rates are carefully designed to recover the cost of serving each customer class, it said.
"The utility purchases power from a diverse mix of competitive sources to secure the most cost effective supply, consistently delivering some of the lowest electricity rates in Texas and across the United States. This disciplined, cost-based approach allows KPUB to keep rates flat for FY2026 while continuing to maintain reliable service and fund essential infrastructure improvements. KPUB is proud to provide some of the most reliable electric service in the country, with fewer outages than the national average," it said.
That dedication to reliability has earned the utility national recognition from the American Public Power Association, along with awards for customer satisfaction, financial transparency, safety, community service, and workplace excellence.
The utility continues to meet or exceed national financial benchmarks for utilities of similar size and region, and its disciplined approach to budgeting has earned KPUB national recognition for excellence in financial reporting for 31 consecutive years.
KPUB’s financial position remains strong, and the FY2026 budget represents the next step in building on one of the most significant years in KPUB’s history.
FY2025 was marked by major accomplishments, from restoring historic storm damage in record time to earning national industry honors, advancing generation ownership, and achieving more than four years without a lost-time work injury.
"With the adoption of this budget, KPUB is maintaining that momentum— keeping rates steady for customers, investing in critical infrastructure, and powering forward with plans that ensure Kerrville’s energy future remains in our community’s hands."
