Austin Water saves $62 million

Using debt defeasance, Austin Water closed a financial transaction that will save $62 million over the next three years. Austin Water uses Capital Recovery Fee money to manage debt and reduce payments, with the saved money going toward more infrastructure, payment assistance for customers and stabilizing utility costs.  A press release from the utility about the recent savings touted the utility’s debt management strategy, which has saved customers $556 million since 2016. “Finding efficiencies and cost savings are critical components of Austin Water’s overall debt management strategy,” said Shay Ralls Roalson, director of Austin Water, in a statement to the press. “Debt defeasance has been a tremendously successful strategy that has helped offset the cost of construction and upgrades to improve resilience across Austin’s water and wastewater infrastructure.”