Denver Water hints at rate hike in 2007
Board grapples with projected shortfall of $12.2 million
Bill Scanlon, Rocky Mountain News
Published August 24, 2006 at midnight
The Denver Water Board dropped a hint about rate increases next year when discussion Wednesday turned to a 7 percent, or $12.2 million, shortfall.
That doesn't mean that Denver Water's 1.2 million customers will see blanket 7 percent increases in their bimonthly bills, said utility spokeswoman Trina McGuire-Collier.
But something has to be done to make up for that revenue shortfall, she said.
A 7 percent shortfall is down from the predicted 8 percent a few months ago, said John Wright, Denver Water's manager of rate administration.
This year's shortfall comes from the loss of revenue that results from conservation and from the increased costs of running the system, but also from the cost of new programs, Wright said.
Among proposals for 2007, Denver Water wants to spend an additional:
• $3.5 million to encourage conservation, including rebate programs and education.
• $1.3 million to meet rising chemical costs and other increases in water treatment.
• $1.9 million to maintain the nearly 100-year-old system.
• $600,000 for a recycling plant so neighborhoods at Lowry and Stapleton can use recycled water on the lawns.
Board members continue to wrestle with how to motivate people to conserve, while still generating enough revenue to keep the system in the black.
The typical residential water customer in Denver pays about $256 a year.
A 7 percent increase next year would see the bimonthly water bill go up by about $3.
A suburban customer pays about $529 and would see the bimonthly bill go up by about $6.
The board will hold at least two public hearings to outline the complex alternatives and get feedback from customers.
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