DENVER—A 20 percent drop in water usage following the 2002 drought is partly to blame for a $49 million shortfall for the state’s largest water utility and a rate hike for customers.
Denver Water’s Board of Commissioners approved a proposal Wednesday to raise rates an average of 7.5 percent for residential water users, or about $19.14 a year per household.
The rate hike takes effect Jan. 1, 2009.
The increase is expected to raise an additional $18.5 million for Denver Water to help cover rising costs, but manager of rate administration John Wright says the utility still expects the shortfall. Included in the utility’s maintenance and operation costs is $10.8 million needed to remove some 1.1 million cubic yards of sediment in the Strontia Springs reservoir south of Denver.
Suburban residential customers who get their water through distributors under contract to Denver Water will see an average increase of $33.12 a year.
Colleen Thompson of Englewood said she’s cut back on the amount of water she uses to maintain her 2.2 acre lawn but her bill has increased.
“We’re not over-watering,” she said.
Denver Water has been working to change its pricing structure so those who use more water pay a higher rate and continues its advertising campaign to encourage conservation despite the drop in usage and revenue.
“In this climate, it’s the right thing and the wise thing to do,” said Denver Water spokeswoman Stacey Chesney. “Conservation is still the less expensive supply option. “
