After months of research, review, and verification, I completed a full investigation into Princeton’s water and sewer billing system, why rates rose, how refunds are being issued, and what changes next.
If you want the short version, scroll to The Quick Read.
The Quick Read
• Average residential bill at 5,000 gallons is about $124, roughly 25 to 35 percent above nearby peer comparisons when Princeton’s bundled fixed charges are included.
• Ordinance 2024 09 16 02 removed the prior residential winter averaging rule, which caused many households to see wastewater charges rise when summer irrigation water was treated as sewer flow.
• The city later created a retroactive credit program to refund or credit customers whose wastewater billing exceeded their winter average during the affected period.
• New outside-city wastewater tiers took effect October 1, 2025, replacing the prior flat structure with consumption-based billing.
• The data in this report is drawn from city rate schedules, utility updates, NTMWD materials, state code, and related public documents.
What Princeton Residents Pay Before Any Water Use
Inside city limits, the monthly fixed charges for a standard three-quarter-inch residential account are:
• Water base: $25.17
• Sewer base: $13.00
• Trash: $13.61
• Recycling: $4.29
• Stormwater: $5.60
• Tax line: $1.48
That means the total fixed monthly charges equal $63.15 before any actual usage is added.
Outside-city accounts do not pay the city’s trash, recycling, or stormwater lines and have different base charges.
Inside-City Water Usage Tiers
Inside city limits, water usage is billed per 1,000 gallons as follows:
• 0 to 4,000 gallons: $6.00
• 4,001 to 10,000 gallons: $7.50
• 10,001 to 30,000 gallons: $9.00
• 30,000 and above: $10.50
Inside-City Wastewater Usage Tiers
Inside city limits, wastewater usage is billed per 1,000 gallons as follows:
• 0 to 3,000 gallons: $5.36
• 3,001 to 6,000 gallons: $6.57
• 6,001 to 9,000 gallons: $7.79
• 9,001 to 10,000 gallons: $9.00
Residential wastewater billing is capped at 10,000 gallons per month.
Outside-City Water and Wastewater
Outside-city water rates are higher than inside-city water rates.
For wastewater, outside-city customers moved from a flat structure to a tiered, consumption-based approach effective October 1, 2025.
The posted outside-city wastewater tiers per 1,000 gallons beginning that date are:
• 0 to 3,000 gallons: $8.20
• 3,001 to 6,000 gallons: $10.06
• 6,001 to 9,000 gallons: $11.92
• 9,001 to 10,000 gallons: $13.78
The outside-city wastewater base charge for a three-quarter-inch meter in FY26 is $22.49.
The Wholesale Cost Driver
One major pressure behind local retail rates is the wholesale water rate charged to member cities by the North Texas Municipal Water District.
Effective October 1, 2025, NTMWD increased the member-city wholesale rate to $4.14 per 1,000 gallons, reflecting major system investment. That increase is one of the cost drivers behind Princeton’s retail structure.
Example Bill at 5,000 Gallons
A typical inside-city household using 5,000 gallons of water and billed for 5,000 gallons of wastewater would be charged this way:
Water usage charge
• First 4,000 gallons at $6.00 = $24.00
• Next 1,000 gallons at $7.50 = $7.50
Water usage subtotal = $31.50
Wastewater usage charge
• First 3,000 gallons at $5.36 = $16.08
• Next 2,000 gallons at $6.57 = $13.14
Wastewater usage subtotal = $29.22
Fixed monthly charges
• Fixed charge subtotal = $63.15
Total sample bill
$31.50 + $29.22 + $63.15 = about $124
That is the all-in example bill used in this investigation.
Bill Spikes and Winter Averaging
The biggest structural change behind many 2024 bill spikes was not simply a rate increase. It was the removal of the winter averaging rule.
In September 2024, City Council adopted Ordinance 2024 09 16 02, amending Section 78 131.
That amendment removed prior text that billed residential wastewater using a winter quarter average based on December through February consumption.
Why that mattered
Without winter averaging, higher summer irrigation volumes could be counted as sewer flow for billing purposes.
That meant households watering lawns or landscaping during hotter months could see wastewater charges rise even though much of that water was never actually entering the sewer system.
The city later acknowledged the issue and created a corrective program.
Refund Program
The city’s utility billing update explains that Princeton established a Winter Quarter Average using December 2023 through February 2024 consumption, then reviewed bills from March through September 2024 to identify cases where wastewater billing exceeded that winter average.
According to the city, credits are being applied automatically to eligible accounts.
Questions have been directed to the city’s Winter Quarter Averaging team.
Independent reporting also noted the scale of the review. The Princeton Herald reported that the city was processing accounts for possible credits and reimbursements due to the failure to apply winter averaging, with more than 10,000 accounts under review and a target completion period.
What residents should know
For billing questions or to confirm a credit, residents should contact the Utility Billing Office.
According to the city’s own program note, a separate request does not need to already be on file for an account to be reviewed.
Outside-City Sewer Change
Beginning October 1, 2025, outside-city wastewater customers moved from a flat wastewater structure to consumption-based tiers.
The city says this aligns with its contracts with Culleoka Water Supply and Milligan Water Supply and is intended to create more consistent billing treatment across customers.
Regulatory Context and Consumer Remedies
Public Utility Commission of Texas
The Public Utility Commission of Texas (PUCT) helps mediate certain billing complaints and provides:
• an online complaint portal
• a statewide customer line at 1 888 782 8477
PUCT does not set Princeton’s inside-city utility rates, but it can assist with dispute resolution.
Texas Commission on Environmental Quality
The Texas Commission on Environmental Quality (TCEQ) oversees drinking water quality and operational compliance for public water systems.
Billing and rate questions are not the same as water quality issues. Water quality concerns should go to TCEQ.
Use of utility funds
Texas Water Code Section 13.045 requires notice to customers if a municipality uses water or sewer system revenue for non-system purposes.
Residents watching city utility finances should look for written notice in budgets, public documents, or bill inserts when those kinds of transfers occur.
Comparisons and Takeaways
Statewide context
Texas Municipal League survey figures show:
2024 averages
• Water: $46.23
• Wastewater: $36.83
2023 averages
• Water: $52.91
• Wastewater: $45.66
A statewide 2025 average had not yet been published in the cited materials.
Regional peers and winter averaging
Nearby systems such as McKinney, Frisco, and Melissa use winter averaging for residential sewer billing, which helps prevent summer irrigation from inflating wastewater charges.
Apples to apples
Princeton’s own rate-study comparison slide shows a combined water plus wastewater amount near $99 at 5,000 gallons, which places it within a relatively narrow band compared with some regional peers.
But once Princeton’s bundled fixed lines for trash, recycling, and stormwater are included, the typical all-in bill rises to about $124.
That is what makes Princeton’s total bill roughly 25 to 35 percent higher than peer water-plus-wastewater totals.
The key takeaway is that Princeton’s bill is not “double” nearby systems, but it is meaningfully higher once all bundled monthly lines are counted.
Plain-Language Bottom Line
Princeton’s rate structure relies on a moderate fixed-charge platform combined with tiered usage billing.
Wholesale costs have risen.
A winter averaging omission in city code caused many households to experience inflated summer wastewater bills.
The city responded by creating a retroactive credit program and by posting a multi-year rate plan that also includes a shift to consumption-based wastewater billing for outside-city customers.
Notes for Readers
Residents should use the city’s MyWaterAdvisor 2.0 tool to monitor daily water usage and identify possible leaks early.
The city’s Understanding Your Water Bill materials also explain each bill line in more detail.
If a bill appears incorrect, residents should request a usage review and, where applicable, reference the city’s winter quarter averaging credit program if wastewater charges exceeded the winter average during the covered months.
Sources Reviewed
• City Rate Schedule FY 2025
• City Utility Rates page
• Ordinance 2024 09 16 02
• Utility Billing Update on Winter Quarter Averaging credits
• Princeton Herald reporting on refunds and credits
• NTMWD FY 2026 wholesale water rate materials
• Texas Municipal League water and wastewater survey results
• PUCT complaint portal and hotline materials
• TCEQ public drinking water materials
• Texas Water Code Section 13.045
• Princeton rate study comparison slide
