City Statement: Drought Surcharge Exemption Fee

Recent claims about Corpus Christi’s drought surcharge exemption fee contain significant inaccuracies that misrepresent how the City’s Drought Contingency Plan works.

No one is currently paying drought surcharges. The City is not currently charging drought surcharge fees to any customers, including residents, commercial users, or large volume users. Surcharges will be triggered only when specific drought-stage conditions are met and will require City Council approval. 

Industrial users cannot “pay to avoid” Stage 1, 2, or 3 water use restrictions. The Drought Surcharge Exemption Fee (DSEF) does not allow large industrial users to bypass drought restrictions or curtailment. Instead, it provides an alternative compliance mechanism in which industries voluntarily pay $0.31 per 1,000 gallons monthly, and they must comply with all Stage 1, 2, and 3 water restrictions and conservation requirements. 

This is not an exemption from conservation. Industrial users who participate in the DSEF program remain subject to all mandatory drought-stage water restrictions and curtailment rules. They do not get a pass on water conservation. They pay an upfront fee rather than an additional surcharge during Level 1 Water Emergency drought conditions, should they be implemented. Approximately $6 million per year is generated from the DSEF. These funds are used to fund future water supply projects.