Rate Changes Effective January 1, 2008

In September, Denver’s Board of Water Commissioners voted to adjust water rates. The five-member Board reviewed several rate options aimed at
covering rising costs while encouraging more water conservation by charging
lower rates for lower use and
higher rates for higher use. The effects of the decision on customers’ bills will vary depending upon the amount of water the customer uses and whether the customer lives inside the city or is served by a suburban distributor under contract with Denver Water.
An average Denver residential customer -- who uses 120,000 gallons per year -- will see bills increase by $13.32 a year. Average suburban customers served by Denver Water -- who use 160,000 -- will see an increase of $21.44 per year.
Rates for Denver Water customers living inside the city remain among the lowest in the metro area, while rates for Denver Water customers in the suburbs still fall below the median among area water providers.
The water department needs an additional $9.7 million in revenue to cover rising costs associated with maintaining, improving and expanding the city’s water system. Upcoming projects include treatment plant enhancements, upgrades to aging infrastructure, a long-term water supply project in the Moffat Collection System, and more conservation education and incentive programs for customers. The additional revenue will also improve cash reserves used as “insurance” against unexpected events like Hayman Fire watershed recovery work.
The Board also voted to reclassify customers with dedicated outdoor irrigation taps. These customers -- primarily commercial, industrial and governmental -- will be reclassified into a new “Other Irrigation” customer class. Some irrigation-only customers, generally homeowner associations, were placed into a Single Family Residential Common Area Irrigation class earlier this year. Beginning in 2008, customers in the new Other Irrigation class will pay seasonal water rates that are up to 10% higher than what they currently pay during the summer. Rates for this customer class will be adjusted over the next three years to better approximate both the consumption characteristics and true cost of providing service to outdoor irrigation-only taps.
A
full listing of the rate changes will be posted on Denver Water’s web site,
www.denverwater.org.