Budget supports reliable service, strategic investments and continued value for customers
October 2, 2026—The Kerrville Public Utility Board (KPUB) Board of Trustees approved the utility’s Fiscal Year 2027 budget at its board meeting last week, continuing KPUB’s focus on providing safe, reliable electric service at the lowest responsible price while making strategic investments in the community’s electric system.
“The FY2027 budget reflects disciplined planning, strategic investment and our continued commitment to providing safe, reliable service at the lowest responsible price,” said Mike Wittler, KPUB General Manager and CEO.
The FY2027 budget includes $60.7 million in operating revenues and $60.5 million in operating expenses. It also includes $7.4 million in cash-funded capital projects, with approximately $1.8 million in anticipated grant funding to help offset those investments.
Powering the Next Chapter
Major initiatives planned for FY2027 include improvements to the Hunt Substation to raise critical equipment above established flood levels, distribution system and river-crossing improvements, and approximately 11 miles of new fiber communications to support flood-warning equipment. Customers will also see new SmartHub tools designed to provide greater insight into their energy use and bills.
Progress also continues on KPUB’s new 122-megawatt natural gas-fired power generation facility in Colorado County, with commercial operation targeted for early September 2027. The facility will include six advanced generating units designed for high efficiency, fast startup, low water use and reliable performance during extreme weather. The project marks KPUB’s first step into power generation ownership and is expected to provide greater control over its power supply while supporting long-term rate stability.
Residential Rate Changes Beginning Nov. 1
Beginning Nov. 1, 2026, KPUB will implement residential rate changes recommended through its Cost of Service Study. KPUB deferred the changes last year following the July 4 flood to provide economic relief and stability to the community during recovery. KPUB remains committed to providing reliable electric service at the lowest responsible price, with residential rates that continue to be very competitive across Texas.
A KPUB residential bill is made up of three main components: the power supply charge, distribution charge, and customer charge. Beginning Nov. 1, the customer charge will increase from $15.25 to $16.75 per month; the distribution charge will increase from 1.680 cents to 2.088 cents per kWh; and the fixed portion of the power supply charge will increase from 4.060 cents to 4.543 cents per kWh. The variable portion of the power supply charge, called the power cost adjustment factor (PCAF), will continue to change based on actual power supply costs.
For a residential customer using 1,000 kWh per month, the November rate changes would add approximately $10.41 per month. Based on KPUB’s August rate of $110 at 1,000 kWh, that would bring the bill to approximately $120.41. At 12.04 cents per kWh, KPUB would remain about 24% below the Texas residential average of 15.94 cents per kWh, based on June 2026 data from the U.S. Energy Information Administration (EIA).
Actual monthly bills will vary based on energy use and fluctuating power supply costs.
KPUB’s residential electric rates remain very competitive and among the lowest in the region. In August 2026, KPUB ranked third lowest among 29 Central and South Texas utilities surveyed for a residential customer using 1,000 kWh. KPUB pairs that value with exceptional reliability and customer service, including national recognition as an APPA Reliable Public Power Provider and a 95% customer satisfaction rating.
Continued Investment in Reliability
The FY2027 capital plan includes projects to strengthen KPUB’s electric system and improve resiliency, including feeder improvements, flood-resilient river crossings, and improvements at the Hunt Substation. KPUB will also invest in new fiber infrastructure to support the Guadalupe River Flood Warning System through the Texas Middle Mile Grant program.
“Our strong financial position allows us to continue making essential investments while providing exceptional value to our customers,” Wittler said.
###