Your water bill is going up (slightly). Here’s why

That small increase helps us make big system upgrades, ensure water reliability and plan for future needs.

By Steve Snyder

 

Nobody likes to pay a bill.

No matter how much you like a service or how essential it may be, handing over your hard-earned money to somebody else — particularly if that bill often increases from year to year — is never fun.

But when it comes to your water bill, the simple fact is the cost of running a complex water system continues to rise. Your bill helps to maintain and upgrade a vast infrastructure that allows us to collect, treat and deliver safe, reliable water, while also providing for essential fire protection services.

You’ll see some slight increases in your water bill starting April 1, 2017. Here are the answers to three questions you may be asking:

  1. Why are you raising my rates?
crews placing concrete for storage tank at Hillcrest

Crews work to place the concrete floor of one of the new Hillcrest treated water storage tanks on Dec. 10. Denver Water is in the middle of a $100 million project to improve the safety and reliability of its Hillcrest facility by replacing two 15-million-gallon underground water storage tanks with three 15-million-gallon tanks, and a pump station.

We have a large, intricate system with a lot of aging infrastructure. With a 5-year, $1.3 billion capital plan, we’re staying on top of the upgrades and new projects needed to keep this system running.

(Watch the video at the top of the page to see the kinds of projects, like replacing failing underground storage tanks and aging pipes.)

To keep up with this necessary work, we are increasing the monthly fixed charge on your bill to help us even out our revenues over the year so we can repair and upgrade our system. This means less reliance on revenues from how much water customers use, which has become increasingly difficult to predict in recent years given the more frequent and extreme weather fluctuations.

  1. How much is my water bill going up?

That depends on the type of customer you are and how you use water. Your bill is comprised of a fixed monthly charge and charges for how much water you use.

Every customer will see an increase to their monthly fixed charge. If you’re like most residential customers who have a 3/4-inch meter, that charge will increase from $8.79 to $11.86 per month.

To help offset the fixed monthly charge, the charge per 1,000 gallons for many customers will see a small decrease in 2017.

Adding up those two elements, if you live in Denver and use 115,000 gallons of water a year in the same way you did in 2016, you can expect to see an annual increase of about $29, which averages out to a monthly increase of about $2.40 a month. (Summer bills are typically higher because of outdoor water use.)

If you live in the suburbs and get your water from one of our 66 distributors, your bill will be higher than Denver resident’s. That’s because the Denver City Charter requires that suburban customers pay the full cost of service, plus an additional amount.

  1. You ask me to use less water and then raise my rates. Am I being penalized for conservation?

We always encourage conservation and the efficient use of water. In fact, rates would be higher without our customers’ conservation efforts; we’d have to build more treatment and distribution facilities to keep up with the demand for water.

For example, your conservation efforts are saving Denver Water an estimated $155 million on a new treatment plant and storage facilities because it doesn’t have to be as big as we originally estimated. That’s $155 million we don’t have to recover through rates and charges.

No one likes paying higher bills, but consider the overall value of water. Most Denver Water customers will still pay about $3 for 1,000 gallons of water.

And while rates are going up, Denver Water is committed to keeping water affordable, particularly for the essential indoor water use that is vital for drinking, cooking and sanitation. In 2017, customers will continue to pay the lowest rate for what they use indoors.

 

If you’d like to talk over your bill with someone, contact Denver Water’s Customer Care team at 303-893-2444, and a representative will help you calculate your individual bill impacts, based on your personal water-use information.

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