
Here’s the release from Denver Water (Stacy Chesney):
The Denver Board of Water Commissioners voted to adjust water rates for 2011 at its meeting today. The adjustment will provide further funding for the utility’s capital projects, which include upgrades to aging infrastructure over the next decade. The new water rates will take effect March 2011.
“Water rates are driven by the vital maintenance and capital projects needed to maintain and improve our system and to keep our infrastructure reliable in the future,” said Todd Cristiano, manager of rates. “Next year’s critical projects include work like dredging Strontia Springs Reservoir, our watershed protection initiative with the U.S. Forest Service, replacing the 105-year old valves at Cheesman Dam, finishing major upgrades at Williams Fork Reservoir and Dam, and stepping up our pipe rehabilitation and replacement program.”
The effects of the proposed changes on customer bills would 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, the more they will pay. Under the current rate proposal, average Denver residential customers would see their bills increase by about $41 a year — an average of $3.40 per month. Typical suburban residential customers served by Denver Water would see an increase of $32 per year — an average of $2.66 per month. For example, the average annual cost for water for an inside-city customer in 2010 was $330, and would be $371 in 2011. Similarly, the average annual cost for an outside-city customer in 2010 was $555, and would be $587 in 2011. Adjustments also have been proposed for commercial, industrial and government customers.
Rates for Denver Water customers living inside the city would remain among the lowest in the metro area, while rates for Denver Water residential customers in the suburbs would still fall at or below the median among area water providers.
Denver Water owns and maintains more than 3,000 miles of distribution pipe — enough to stretch from Los Angeles to New York — as well as 12 raw water reservoirs, 22 pump stations and four treatment plants. Ongoing rehabilitation and replacement of infrastructure is needed throughout the water distribution system, much of which dates back to post-World War II installation or earlier.
Denver Water is funded through rates and new tap fees, not taxes. Its rates are designed to recover the costs of providing reliable, high-quality water service and to encourage efficiency by charging higher prices for increased water use. A significant portion of Denver Water’s annual costs do not vary with the amount of water sold and include maintenance of the system’s distribution pipes, reservoirs, pump stations and treatment plants. Denver Water also examines and adjusts its capital plan as necessary each year.
Details of the 2011 rates can be found Denver Water’s website (www.denverwater.org). Members of the public who have questions about the proposed rate adjustment may call 303-628-6320.
Click on the thumbnail graphic for a quick look at a rehabbed waterline.
More coverage from Bruce Finley writing for The Denver Post. From the article:
Starting in March 2011, metro-area residents’ bills will increase by an average of $41 a year in Denver and $32 a year in suburban areas, utility spokeswoman Stacey Chesney said. It will be the 20th straight year that Denver Water customers have faced rate hikes. Denver Water board members said the rate hike is required to cover the cost of maintaining more than 3,000 miles of pipe, 12 water reservoirs, 22 pump stations and four treatment plants…
This year, the average annual cost for Denver Water’s urban customers was $330. For suburban Denver Water customers, the average cost was $555 — still lower than the cost of water supplied by other water providers, Chesney said. Denver Water also raised rates about 5 percent for commercial, industrial and government customers.
More Denver Water coverage here.
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