Ute Water Conservancy District: Water Rates and Tap Fees Approved for 2014

Bicycling the Colorado National Monument, Grand Valley in the distance via Colorado.com
Bicycling the Colorado National Monument, Grand Valley in the distance via Colorado.com

Here’s the release from the Ute Water Conservancy District (Joseph R. Burtard):

Ute Water Conservancy District’s 14 Member Board of Directors voted unanimously to raise the District’s water rates and tap fees for 2014. Ute Water provides domestic water to over 80,000 people in Mesa County, making it the largest domestic water provider between Denver, Colorado and Salt Lake City, Utah.

The District completed a Raw Water Study in 2011 which identified future water needs based on the estimated population growth and multi-year drought protection in the Grand Valley. This study projected that by 2045, Ute Water will be serving a population of 197,000 consumers. In order to meet the projected demands of 80 gallons per capita per day, the District will need 21,400 acre-feet of additional water supply. The District’s Board has taken a proactive approach, based on the outcome of the study, to insure that appropriate infrastructure, technology and raw water supply will be in place to meet future domestic water demands in the Grand Valley.

The District entered into a Financial Agreement, earlier this year, with the United States Department of the Interior Bureau of Reclamation to purchase water stored in Ruedi Reservoir. This agreement initiated the largest single water purchase the District has made in its 57-year history. This Financial Agreement allowed Ute Water to purchase 12,000 acre-foot of water from Ruedi Reservoir for $1,297.90 an acre-foot. “The District will utilize this water as a reliable insurance policy for the Grand Valley. An investment that will allow the District to meet the future water needs of the Grand Valley while giving us a dependable source of water during drought conditions.” stated Joseph Burtard, spokesperson for Ute Water. Ruedi Reservoir is a 102,000 acre-feet reservoir which sits 15 miles above the town of Basalt, Colorado. Ruedi was constructed in 1968 as part of the Federal Reclamation’s “Fryingpan-Arkansas Project”.

Ute Water utilizes a full-cost pricing approach when evaluating water rates each year. The District’s primary source of revenue is water sales. The revenue from water sales are expected to cover all operations, maintenance and the replacement cost of the existing infrastructure while preparing for the future demands and upgrades to the system. “Purchasing Ruedi water was a major capital investment for the District. As a result, our water rates and tap fees had to be evaluated and aligned with our operational costs and targeted reserves.” stated Burtard. The new water rate increases the $17.00 minimum, for the first 3,000 gallons of water, to a $19.00 minimum. The minimum water rate for all other tap sizes will also increase proportionally. Customers using over 3,000 gallons in a billing cycle will see a $.10 increase in each of the tiers. The new water rates will be for water delivered in December 2013 and billed after January 1, 2014. Effective January 1, 2014, the District’s tap fees will increase from $6,500 to $6,700.

For additional information on Ute Water’s rate increase, please contact Joseph Burtard at Ute Water Conservancy District at (970) 242-7491 or visit the District’s website at http://www.utewater.og.

From The Grand Junction Daily Sentinel (Duffy Hayes):

For the second year in a row, Ute Water users will see an uptick in the amount they pay for the service. Ute Water’s board unanimously adopted an increase in the district’s water rates at a recent meeting, similar to a rise in rates last year. Both increases are being attributed to a recent $15.5 million purchase of more than 12,000 acre-feet of water from Ruedi Reservoir near Aspen.

“We were trying to build up our reserves to purchase Ruedi (last year), and now that we have purchased it, we kind of need to replenish those reserves for capital projects,” said Joe Burtard, external affairs manager for the Ute Water Conservancy District. He further called the Ruedi purchase a “hidden gem” in terms of the cost of the purchase as compared with others in the industry.

In practical terms, Ute Water customers who use less than 3,000 gallons a month will see their bill go from $17 to $19. For larger-scale users, $.10 will be added to the cost per tier of usage, officials said.

Ute’s tiered system of billing for higher-use customers is in place for a reason, Burtard said.

“That’s our way of enforcing conservation. We do have a fairly aggressive rate structure, but that’s because we live in a desert, and we don’t want people using treated water for outdoor use,” he said.

The rate increase will happen for water delivered in December, appearing on users’ January billing statements. Also after the first of the year, tap fees will go up $200 to $6,700.

In announcing the rate hike, Ute said that a 2011 study pegged the district’s future customer base at 197,000 customers by 2045, up significantly from the 80,000 people it serves today.

The Ruedi water sale represented the largest single purchase made by the district over its entire 57-year history, according to a press release.

More infrastructure coverage here.

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