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  1. 2/15/2008 WATER BILL REFUNDS COMING TO PLATTE CANYON CUSTOMERS
  2. Denver Water recently discovered an error in the formula used to calculate the water bills for “Read and Bill” customers which resulted in customers being overcharged for their water usage.  This incorrect water rate calculation resulted in 35,000 single-family homes, half of them located in the Platte Canyon Water and Sanitation District, to be overcharged for water bills beginning January 1, 2007 and continuing through the first billing period of this year.
     
    “We hate this sort of situation,” David LaFrance, Denver Water’s Finance Director, told the Denver Board of Water Commissioners on Wednesday.  “We take pride in doing accurate water calculations.”
     
    LaFrance and his staff discovered the error a week ago after it became clear that families in the “read and bill” category had generated $1.5 million in additional income, despite having used the amount of water projected by the utility.  “Total sales were what we expected, but revenues where more than expected,” LaFrance said.
     
    Customers who were overcharged will be issued a one-time credit on their water bill dated on or after April 30, 2008.  The amount of the credit is the amount they overpaid for the relevant time period.  The average credit amount is estimated to be approximately $44.  Some customers will receive more, others will receive less.
     
    Denver Water has since corrected the calculation error and has corrected the water rates that District customers will be charged in the future.  The corrected 2008 rate table is below.
     
    2008 Read and Bill Single Family Residential Rate Correction
     
    Consumption Block
    Monthly Water Usage (Gallons)
    2008 Adopted Rates per 1,000 gallons
    2008 Proposed Correction per 1,000 gallons
     
    Block 1
    0 - 11,000
    $2.21
    $1.90
    Block 2
    12,000 - 30,000
    $4.42
    $3.80
    Block 3
    31,000 - 40,000
    $6.63
    $5.70
    Block 4
    Over 40,000
    $8.84
    $7.60
     
    Denver Water has taken full responsibility for the error.  “This is something that Denver Water regrets having happened,” Mr. LaFrance said.  “Having found it, the only appropriate thing to do is to return the money to those who paid it.”
     
    If you have questions or require additional information concerning this matter, please contact Denver Water customer service at 303-893-2444.