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NBU and City of Seguin enter into water agreement

SEGUIN, Texas – The City of Seguin and New Braunfels Utilities (NBU) have reached a water deal that will benefit both parties and further strengthen regional partnerships. This week, the Seguin City Council and the NBU Board of Trustees both approved a contract that will allow NBU to buy surplus water from the City of Seguin for the next twenty years or more.

The approved contract lays out the timeline for how much water NBU will buy from the City of Seguin. For the first three years, they will purchase 1,100-acre feet of water per year. Starting in October of 2021, NBU will increase the amount of water they purchase by 500-acre feet each year until they reach 2,500-acre feet with the possibility of an additional 500-acre feet with concurrence by both utilities.

“Our ability to sell our surplus water to New Braunfels Utilities offsets the cost of maintaining and improving our system allowing us to keep rates low for the city’s rate-payers. NBU had other opportunities to purchase water, but thanks to our long-standing, positive relationship with NBU, they felt comfortable working with us,” said Rick Cortes, City of Seguin Assistant City Manager.

“New Braunfels Utilities and the City of Seguin have enjoyed a terrific relationship for many years,” said, Ian Taylor, NBU, CEO, “This water agreement is a regional solution that will benefit both communities for years to come.”

Initially, NBU will take the water through an existing City of Seguin/Springs Hill Water Supply interconnect. NBU has three years to construct a pipeline with a larger capacity to take up to 3,000-acre feet of water annually.

The City of Seguin staff have concluded that the city’s water system and ample, diverse water resources have the capacity to produce, treat and deliver more water than Seguin’s customers can use now and in the future. By selling the excess supply to NBU, they are better able to meet the demand of their growing customer base while the City of Seguin can use the revenue from the deal to maintain and improve their water system. ###