Denver Water’s residential customers will see their bills increase by an average of 8 percent next year following a decision Wednesday by the utility’s board of commissioners.
The board raised consumption and service charges and adopted a new rate structure that will boost the bills of high-volume water users.
After the new rates go into effect in January, most residential customers will see their bills rise an average of $20 to $30 a year.
Utility officials say the new rates will generate an additional $12 million to cover a projected budget shortfall caused by dwindling water sales and rising operating costs.
Since the drought hit Denver in 2002, utility customers have dramatically curtailed their water use beyond what Denver Water managers had expected. This year alone, consumption dropped 20 percent below historical normal use.
That drop helped keep Denver Water’s reservoirs close to full this summer even though precipitation was often below normal, particularly throughout the Front Range during May and July.
“Our system and customers have performed quite well and put our storage in good shape, should the drought return,” said Marc Waage, a Denver Water resource manager.
Residential customers using more than 80,000 gallons every two months will see a 12 percent to 15 percent hike in bills as a result of the new rates.
The increase for high-volume users is aimed at encouraging conservation, the board said. Only about 1,800 of Denver Water’s 180,000 residential accounts should be affected.
Some Front Range environmental groups pressed the board to adopt a rate structure that not only charged high-volume users more but also minimized rate increases for conservation-minded customers.
“I think Denver Water took a baby step toward adopting a fair and equitable block-rate structure, but they still have a long way to go,” said Bart Miller, water program manager for Boulder-based Western Resource Advocates, an environmental law and policy organization.
Some homeowners complained that the new rate structure will penalize those with large lots.
“Don’t assume high water use is synonymous with water waste,” Joe Waters, a Denver resident, told the board
Staff writer Kim McGuire can be reached at 303-820-1240 or kmcguire@denverpost.com.
