Denver water rate hike approved

Average Denver resident to pay $13 more a year

Tillie Fong, Rocky Mountain News

Published September 27, 2007 at midnight

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The Denver Water board voted Wednesday to increase rates next year, and to change how some customers are charged for outdoor irrigation.

An average Denver residential customer, using 120,000 gallons per year, will see his annual bill jump by $13, from $280 to $293 in 2008.

The average suburban residential customer, using about 160,000 gallons per year, will pay $21 more, from $476 to $497 annually.

The Denver Water board also voted for a new rate category - "other irrigation."

This category will apply to 131 commercial, industrial or governmental customers that have outdoor irrigation systems.

These users will see up to a 10 percent increase in their summer rates in 2008, but up to a 3 percent drop in their winter rates compared with what they pay this year.

Rates for customers in the new category will be adjusted over the next three years.

That will be done to better reflect their actual usage and the costs of servicing outdoor-only taps.

The rate hikes and category switch, which will go into effect in January, are expected to generate an extra $9.7 million in 2008.

The additional money represents a 5 percent increase in total revenues from water rates.

The revenue from the rate increases next year will be spent to upgrade aging infrastructure, increase capacity in the Moffat Collection System, and pay for more conservation and incentive programs for customers.

The money also will help in preserving a greater cash reserve.

The last rate hike for Denver Water went into effect in January.

Even with the increase in 2008, rates for Denver Water users in the city are among the lowest in the metro area, while suburban customers are paying rates below the median for area water providers.

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