Denver Water Implements Higher Rates to Combat Drought

Drought Prompts Rate Increases

Denver Water is implementing higher water rates for some customers in response to severe drought conditions and record-low snowpack. The utility, serving over 1.5 million people in the Denver metropolitan area, announced the new pricing structure to curb outdoor water use.

Pricing Structure and Timeline

Effective May and lasting until April 2027, the new rates mark the return of drought pricing after a 21-year hiatus, with the last implementation occurring in 2002. This decision coincides with Stage 1 drought restrictions enacted on March 25, limiting lawn-watering to twice per week and recommending delayed sprinkler activation until mid-May.

How the Tiered System Works

The new pricing structure utilizes a tiered system based on individual customer usage. Denver Water will calculate each customer’s average monthly indoor water usage using consumption data from January, February, and March – months with minimal outdoor water use.

Tier Details

  • Tier 1: No surcharge for average indoor usage.
  • Tier 2: An additional $1.10 per 1,000 gallons for usage exceeding the indoor average, up to 15,000 gallons per month. For Denver city residents, the rate increases from $5.44 to $6.54 per 1,000 gallons.
  • Tier 3: An additional $2.20 per 1,000 gallons for usage exceeding the Tier 2 threshold. For Denver city residents, the rate rises from $7.25 to $9.90 per 1,000 gallons.

Impact on Customer Bills

Denver Water estimates a single-family home could see an annual bill increase of around $30 with a 20% reduction in water usage. However, bills could rise by approximately $45 for those who do not reduce consumption.

Additional Conservation Measures

Alongside pricing, Denver Water has implemented an outdoor watering schedule based on addresses. Watering is permitted before 10 a.m. or after 6 p.m. to minimize evaporation. Even-numbered addresses can water on Sundays and Thursdays, while odd-numbered addresses can water on Wednesdays and Saturdays.

Financial Stability and Future Outlook

Officials anticipate the increased rates will encourage conservation and offset revenue losses from reduced water consumption. Denver Water has already implemented a hiring freeze and reduced spending. Chief Financial Officer Angela Bricmont expressed confidence in the utility’s financial stability during the drought. The utility also continues to address water waste, as demonstrated by a warning issued to a property owner for excessive runoff on July 10, 2012.