South Lake Tahoe, CA (May 6, 2026) –  South Tahoe Public Utility District is launching an ambitious summer construction season focused on critical upgrades to the community’s water and wastewater systems. The District’s 2026 projects include major investments to replace aging infrastructure, improve reliability, enhance fire protection, and safeguard public health and the environment.

This year, the District is investing approximately $20 million in water system improvements throughout South Lake Tahoe. Planned projects include installing a new water transmission main on Pioneer Trail, rehabilitating two of the District’s eleven drinking water wells, drilling two new drinking water wells, recoating the District’s two largest water storage tanks, and installing the final ~100 residential water meters.

To help fund summer projects and reduce costs to ratepayers, the District has secured $5.3 million in grant funding through the US Forest Service, Bureau of Reclamation, California Office of Emergency Services, US Environmental Protection Agency, and California Tahoe Conservancy, along with $4.9 million in low-interest loans through California State Water Resources Control Board. The District also just installed a solar array at the wastewater treatment plant, that is expected to save $190,000 in electricity costs this year.

A major highlight of this year’s water improvements is the Pioneer Trail Waterline Project, which will install almost 9,000 linear feet of new water line and add fire hydrants along Pioneer Trail from Marshall Trail to Susquehana Drive. This project will connect portions of the District’s water system, improve water pressure, water quality, and system reliability while significantly enhancing fire flow capacity and hydrant coverage in a critical wildland urban interface area.

Funding for the Pioneer Trail project includes $1.3 million from the United States Forest Service, $1 million from the Environmental Protection Agency, and $4.9 million in low-interest financing through the California State Revolving Fund Program.

On the wastewater side, the District is investing approximately $8 million in sewer collection, treatment, and export system improvements this year. Key projects include sewer main lining in the Tahoe Keys neighborhood, upgrades to a critical sewer pump station, rehabilitation of holding ponds at the wastewater treatment plant, and hazardous fuels reduction work at critical District facilities. These investments are designed to extend the life of the wastewater collection and treatment system, reduce the risk of sewer spills, and protect the clarity of Lake Tahoe.

“We continue to work hard and we are making progress, but at the end of the day, there’s still a lot to do,” said Paul Hughes, General Manager. “We need to continually invest in our water and sewer system to ensure reliable operations and keep up with inflation.”

To support these essential infrastructure improvements, the District’s Board of Directors is considering adjustments to water and sewer rates. Two years ago, through the Proposition 218 process, the Board adopted a five-year rate schedule to increase rates up to 9.5% per year. After evaluating project needs and staff capacity, this year the Board is considering a 6.5% rate change. For a typical residential customer, the proposed increase would be approximately $4.24 per month for sewer service and $5.14 per month for water service. If approved, the new rates would take effect on July 1, 2026.

“The Board does not approach rate adjustments lightly,” said Shane Romsos, Board President. “Like most in our community, the District is facing increased costs associated with goods and services needed to maintain our water and sewer systems. We actively work to maximize available funding through investment in energy efficiency, grants, low-interest financing, and strategic project planning and partnerships. These efforts help reduce the burden on our ratepayers while allowing the District to continue investing in reliable infrastructure, and long-term system resilience. Even with proposed rate adjustments, STPUD’s water and sewer rates remain the lowest in the Tahoe Basin.”

The District offers a low-income Customer Assistance Program, with discounts ranging from 15% to 25% depending on household income level. Details are available at www.stpud.us/financial-assistance-programs.

To learn more about the proposed rate changes and the types of projects they will fund, attend the Board Meeting on Thursday, May 21, 2026, at 2:00pm in the District Board room, located at 1275 Meadow Crest Drive or visit www.stpud.us/capital-improvement-program. The District’s Board of Directors will vote on the proposed rates on Thursday, June 4, 2026, at 2:00 p.m. in the District Board Room.

Community members can learn more about the proposed rate changes and the capital projects they support by visiting stpud.us.