Denver Water is saying that they will likely raise rates in 2007, according to the Rocky Mountain News. This is fun to watch - the utility raises rates, customers conserve, revenues go down, the utility raises rates, rinse and repeat.
From the article, "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."
Here's the coverage from the Denver Post. From the article, "For the average single-family home, the rates could rise 3 to 5 percent a year, or about $9 to $15. Customers who use more than 200,000 gallons of water a year, however, could face steep increases under two of three rate plans being considered. Under one alternative, residential customers who use more than 350,000 gallons could see a 20 percent increase on their annual bills - a more than $170 jump. Denver Water, the state's largest water provider, said it is being pushed to raise rates to compensate for lost revenues as use declines. During the 2002 drought, Denver Water's 1.2 million customers cut water use 24 percent over the historical average. Denver Water commissioners say they are trying to come up with a rate policy that encourages conservation using price and other incentives...
"Denver Water customers have complained they are being penalized for conserving water during dry times by continued rate hikes - a complaint noted Thursday by commissioners 'I think we blunted a lot of customers' desire to help,' Commissioner George Beardsley said. Denver Water finance officials are proposing new rate structures to give customers more control over their bills by putting a greater emphasis on consumption. Rates are currently dictated by water consumption and a fixed meter charge, which recovers 10 percent of the rate revenue. Under a new alternative, the utility would adjust consumption charges, do away with the meter charge and replace it with a lower service charge. That fixed charge would recover 5 percent of the rate revenue, placing more emphasis on how much water a customer uses."
Category: Colorado Water
6:57:08 AM 
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