Denver Water authorities on Wednesday voted to raise a monthly fixed charge, while adopting a new three-tiered rate per-1,000 gallons system that is designed to result in a lower rate for water used within the home than that charged for outside use.
But it’s hard to say what that will mean on bills for individual consumers.
Denver Water spokeswoman Stacy Chesney said the new system, which replaces one that made no distinction between water used inside or outside, makes it impossible to calculate an average monthly bill.
“If someone is using water efficiently indoors but not outdoors, their bill will look different from someone who is using water efficiently outdoors,” even if they use the same amount of water, she said.
Whether the customer lives in Denver or is served by a suburban distributor under contract with Denver Water also has an impact on the bill.
The Denver Water board voted a 3.8 percent revenue increase for 2016, bringing the budget to $387.5 million, Chesney said.
The increased revenue is needed to replace aging pipes, failing underground storage tanks, and upgrade or rehabilitate other aging infrastructure, Chesney said.
“Our priorities for 2016 and the changes to the rate structure will allow us to continue improving our water system while ensuring essential water use remains affordable for our customers,” said Jim Lochhead, Denver Water CEO.
In the past, a fixed monthly charge was coupled with a four-tiered consumption charge that increased with the amount of water used.
In 2015, a single-family residential customer in Denver paid a fixed fee of $6.74 every month and then from $2.75 to $11 per 1,000 gallons, depending on the amount of water used in each tier.
The new fixed monthly service charge will rise $2.05, to $8.79.
The new plan will calculate indoor use based on average consumption per-month in January, February, and March, a period when users do not water lawns.
That water will be charged at the lowest rate per 1,000 gallons — $2.60 — up to each customer’s calculated average winter consumption. Most residential customers use 5,000 gallons or less indoors.
The next 15,000 gallons for outdoor use will fall into a second, higher-priced tier, and cost $4.68 per 1,000 gallons.
Anything above that is considered inefficient water use, and falls into the highest-priced tier at $6.24 per 1,000 gallons.
Compared to the 2015 charges, the rate per-gallon for tier 2 falls from $5.50 to $4.68, tier 3 falls from $8.25, to $6.24, and tier 4, which was $11, is eliminated.
Tom McGhee: 303-954-1671, tmcghee@denverpost.com or @dpmcghee
