PSB Approves Water Franchise Fee For All Utility Customers

The Public Service Board approved a franchise fee that will be charged to all water utility customers regardless of whether they are considered residential, commercial or industrial customers.

The City of El Paso charges the water utility for its use of city infrastructure like streets. The utility is now passing on that “franchise fee” to all of its customers.

Previously, commercial and industrial customers were paying a flat $15 franchise fee.

“A typical residential customer with a three-quarter inch meter will be getting a franchise fee they didn’t get before,” said El Paso Water Utilities President John Balliew. “Businesses that previously had been paying the flat $15 fee could be paying more – or less – depending on the size of the meter.”

Ray Adauto, with the El Paso Association of Builders, is worried the franchise fee will hurt people who own properties with multiple water meters.

“If you’re (the owner) of a commercial or multi-family building, you’re being charged per meter, not per address,” said Adauto. “My fire sprinkler system was my biggest issue. My bill went up substantially: 126 percent!”

“We consider an account per meter. So, if you have a building that has multiple meters, that’s multiple accounts,” said Balliew.

The franchise fee for the average residential customer is 77 cents, according to Balliew.

The fee reflected on your water bill will be $1.33. That includes a 56 cent surcharge that will be applied over a 12 month period.

EPWU Vice President, Christina Montoya, told ABC-7 the water utility reimbursed certain commercial customers who had been paying the old flat franchise fee. The surcharge will help the utility recover that money.