Denver Water bills will get more expensive. Blame the drought.
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The Dillon Reservoir on April 5. Photo: Courtesy of Denver Water
For the first time in more than two decades, Denver Water on Wednesday announced an added surcharge on water bills to encourage conservation amid the ongoing drought.
Why it matters: The utility — which serves 1.5 million in the area — is putting the onus on its customers to use less water, but the additional fees inevitably add to the region's cost-of-living concerns.
Driving the news: The temporary price hikes, approved with little discussion by the utility's water commissioners, take effect May 1 and target the system's top users.
- Customers in Tier 1 — residents and businesses that do little to no outdoor watering — won't see a bill increase.
Yes, but: Tier 2 customers — whose average winter consumption rate and usage nears 15,000 gallons monthly — will pay an extra $1.10 for every additional 1,000 gallons.
- Tier 3 customers — those who use more than 15,000 gallons per month — will face a $2.20 surcharge on every 1,000 gallons.
By the numbers: For Denver residents, the fees are expected to add between $7 and $76 annually, with heavier users paying more.
- For customers outside city limits, water bills will increase between $8 and $76.
The big picture: Denver Water declared a drought in March and set a goal to reduce water usage by 20%.
- The move follows a historically low Colorado snowpack that is melting at the fastest rate ever seen in April, Denver Water officials said.
- The last time the utility added drought pricing was in 2004.
What they're saying: "The more you can serve, the less these will impact you. And if you can serve that 20% target, your bill will be less than it would be under normal circumstances," Fletcher Davis, Denver Water's rate manager, told water commissioners at a meeting Wednesday.
Between the lines: A reduction in water use will also hit the agency's budget. To offset the budget shortfall, Denver Water has implemented a hiring freeze, canceled its summer internship program and delayed maintenance projects.
What we're watching: The price hikes will remain in place for a year. If the utility doesn't meet its water savings goal, it may take additional conservation actions this summer.