As summer winds to an end, we’re reminded of the continuing realities of living in the semi-arid West: Smoking in the woods is a bad idea. Record wet weather in June is not necessarily cause for celebration as it can easily be followed by record dry conditions in July. And wasting water is, officially, not Colorado-friendly behavior.
For Denver Water, several new realities and lessons emerged this past year. Braced for more drought this spring, we now find our reservoirs at a healthy 94 percent full, slightly above where they’d be in a normal September. Responding to the drought and Denver Water’s pleas, our customers continued to reduce their use, this year by about 20 percent compared to pre-drought usage. New water use habits gave us a peak demand day of 425 million gallons under record-setting hot, dry weather conditions.
Prior to the drought, those conditions would have pushed use to above 500 million gallons. We learned that our customers, by and large, are inclined to be responsible, efficient water users if they are given tools, information, incentives and encouragement and if they feel they are being treated fairly.
We’re grateful for the precipitation we received this year, but it’s not a signal to revert to pre-drought water-wasting habits. We’ve long known that drought is a natural element of our climate. Drought conditions are almost always present somewhere in Colorado. Evidence suggests the future may produce even more variable weather patterns and greater challenges. Given these uncertainties, we need to be committed to efficient water use all the time, not just during periods of drought. This reality requires a long-term commitment to conservation supported not just by rules and programs but, more importantly, by a culture and ethic where the value of water is always acknowledged, and wise water use becomes a part of the social fabric of this region.
Our financial planning for the future must reflect these new realities. More conservation means our current rates generate less revenue, requiring us to take a hard look at our expenses and our entire financial picture.
Continuing to acquire, treat and deliver clean, safe water to a steadily growing population in a semi-arid environment will become increasingly difficult and expensive. It will require new and innovative approaches such as recycled water, conservation technology and regional cooperation. Denver Water is revising its long-term plan for determining and meeting future demand. Wise water use will play a critical role in assuring that the supplies we have can meet more needs and that some of the consequences associated with obtaining additional supplies can be postponed or partially avoided.
Events such as the drought and the Hayman Fire have reminded us of how robust and flexible our system needs to be to deliver a safe, reliable supply. First and foremost, we must continually maintain the city’s water system, a system valued at billions of dollars, with nearly 3,000 miles of pipe that, in some parts of the city, is nearly 100 years old.
Our customers have expressed a desire for water rates that are higher for those who use water inefficiently while more directly rewarding efficient use. We agree and are exploring rate designs that cover the full costs of providing service while also attaching an appropriately high value to water and encouraging its wise use.
We must look closely at our own economic efficiency, as well. We have delayed capital projects, left positions unfilled, rearranged our debt profile and tapped into our cash reserves. Still, we take seriously our mission to deliver high quality water 100 percent of the time. We will continue to look for new ways to reduce costs and increase productivity while maintaining our commitment to providing exemplary service, complying with water quality regulations and maintaining our complex system.
Over the next 10 years, we must generate sufficient revenue so the system continues to meet the water needs of our customers. Even with an increased commitment to efficiency and cost reduction, water will become a more expensive resource. Given the relatively fixed costs of operating the system, we will need rate increases over the next few years that will exceed those of the recent past. With careful planning, however, those increases can help support greater conservation success. For example, our customers can look forward to a future where they can more effectively monitor and control their own water use through more water- saving tools, technology and programs.
Our region is moving into an era of valuing more highly our most precious resource. Denver Water looks forward to working with our customers and like- minded partners throughout the state who share that commitment.
Chips Barry is manager of Denver Water.
