1600 West 12th Avenue
Denver, Colorado 80204
Phone: 303-628-6000
Fax: 303-628-6349
http://www.denverwater.org

Denver Water Board Adjusts Rates for 2009

Sept. 24, 2008: Denver Water’s Board of Water Commissioners today approved a proposal to adjust water rates for 2009, maintaining the utility’s conservation-oriented pricing structure that provides lower rates for low water use and charges more for summer peak usage.

The adjustments take effect Jan. 1, 2009.

Denver residential customers will see their bills increase by about $19.14 a year, on average. Suburban residential customers served by Denver Water will see an increase of $33.12 per year, on average. (Residential water bills are issued bi-monthly.) The effects of the changes on customer bills will vary depending upon the amount of water the customer uses and whether the customer lives in Denver or is served by a suburban distributor under contract with Denver Water. The more customers use, they more they will pay.

Rates for Denver Water customers living inside the city remain among the lowest in the metro area, while rates for Denver Water residential customers in the suburbs still fall below the median among area water providers.

Estimates indicate that in 2009 Denver Water will need an additional $18.5 million in revenue to cover rising costs associated with maintaining and improving the city’s water system. Next year’s projects include the replacement and rehabilitation of aging infrastructure, Hayman Fire watershed recovery work, potential enlargement of Gross Reservoir and expanding conservation education, rebates and incentive programs.

Denver Water is looking at ways to revise its rate structure and is seeking customer feedback on new rate structure options for 2010. The utility has a survey on its Web site through Oct. 31 for customers to provide input.

Denver Water is primarily funded through rates and system development charges (commonly referred to as tap fees — charged to new customers connecting to the water system). No tax dollars are directed to Denver Water or its projects. The independent municipal agency’s rates are designed to recover the costs of providing reliable, high-quality water service and to encourage efficiency by charging higher prices for higher water use. The majority of Denver Water’s costs are fixed and include maintenance of the system’s 2,650 miles of distribution pipe and other assets such as reservoirs, pump stations and treatment plants.

The utility continues to aggressively encourage water conservation to help extend supplies into the future, eliminate waste and reduce the need for more costly alternatives like new dams and storage projects.

“Rates are more affected by rising operating costs than by changes in demand,” said John Wright, manager of rate administration. “In the long run, conservation is a less expensive supply option than finding more water and building new storage facilities.”

The Board also voted to adjust rates for commercial, industrial and governmental customers, who pay seasonal water rates. The inside-city rates for these customers will be adjusted from $2.47 per thousand gallons to $2.96 per thousand gallons in the summer and from $2.06 per thousand gallons to $1.48 per thousand gallons in the winter.

Customers with questions about water usage and rates may call Denver Water at (303) 628-6000.

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Denver Water proudly serves high-quality water and promotes its efficient use to 1.3 million people in the city of Denver and many surrounding suburbs. Established in 1918 as a nonpolitical municipal agency independent of City government, it is Colorado's oldest and largest water utility.

FOR IMMEDIATE RELEASE ON 

September 24, 2008

CONSERVE