Northern Water opts for gradual rate increase — Fort Collins Coloradoan

Colorado-Big Thompson Project Map via Northern Water
Colorado-Big Thompson Project Map via Northern Water

From the Fort Collins Coloradoan (Ryan Maye Handy):

The Northern Colorado Water Conservancy District will increase the cost of its water step-by-step over 2016 and 2017, which will mean 28 percent cost increase per year for cities like Fort Collins.

The district’s board came to a decision about the rate increases on July 11, after months of considering the best way to hike prices to balance out the district’s budget. The board initially considered a more than 40 percent increase in 2016, but decided to compromise with cities and other water users concerned that such drastic increases would harm their finances.

Fort Collins Utilities, which now gets the bulk of its water from the district, says that in the short term customers’ utility rates will not be affected…

For 2015, allotment prices for cities were set at $30.50 per acre foot, up from $28. While that cost will only increase for cities over the next few years, irrigators will face a 61 percent increase in allotment costs in 2016 and 2017.

Fort Collins Utilities directly owns 18,855 units in addition to about 14,000 units it leases from the North Poudre Irrigation Co. But, in terms of actual use for 2014, the city has used 14,900 acre feet of water since Nov. 1, when the water year begins.

After the High Park Fire, Utilities became even more reliant on C-BT water since the Poudre River, the city’s other water source, was filled with fire and flood debris. This year, the city gets about 65 percent of its water from Northern Water, and 35 percent from the Poudre.

From the Loveland Reporter-Herald (Jessica Maher):

Costs are expected to increase every year until 2018, when municipal and industrial C-BT users will be charged $53.10 per unit and agricultural users will be charged $30.20 per unit. That represents a nearly 90 percent increase for municipalities and 202 percent increase for agricultural users.

The city of Loveland owns 12,118 units of C-BT water, 5,112 of which are fixed at a rate of $1.50 per unit that will not change.

The increase for Loveland’s remaining 7,006 open-rate units will cost the city about $176,000 more by 2018. Loveland Water and Power staff will budget for the increase in the coming years, senior water resources engineer Larry Howard said.

“It’s real money, but it’s not something that’s devastating to the utility or something,” Howard said.

Next year, rates are set to increase by 9 percent. That’s a manageable increase that will not require rate increases for Loveland Water and Power customers, Howard said.

Whether customers will see an impact from the increase in future years is not known.

“When we do our cost of service study next year, the cost increase will be taken into account, along with any other changes in our costs,” Utility Accounting Manager Jim Lees said.

The city of Loveland’s primary two sources of water are the Green Ridge Glade Reservoir and water diverted directly from the Big Thompson River at the Big Dam.

“We generally rely on those each year and then start filling in with C-BT and Windy Gap water,” Howard said. “It depends on the year and how much we need.”

Depending on conditions year to year, the city rents C-BT water to farmers, so Howard said that could help to absorb the cost of the rate increases over the next few years.

Brian Werner, Northern Water’s public information officer, said that the increases are the result of a comprehensive study that started last year.

“The cost of doing business is going up,” Werner said. “Our management has charged us with looking at where we can control costs.”

More Colorado-Big Thompson Project coverage here.

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