MENU

District News Articles


  1. 10/14/2011 DENVER WATER RATE INCREASE SHIFTS COSTS TO SUBURBAN CUSTOMERS
  2. The Denver Board of Water Commissioners adopted a 5.5% rate increase for 2012 for all customers of Denver Water.  What is different about the decision this year is that the Board ignored the comprehensive rate model used for over twenty years and allocated additional revenue needs to all categories of customers irrespective of their proportion of costs.  Southwest Metropolitan and other distributors strenuously opposed the rate increase for its unfair distribution of costs.  According to the historical rate model Platte Canyon customers should have received no increase in rates for 2012.
     
    City of Denver residents, on the other hand, should have received a 12.4% increase rather than 5.5%.  According to Platte Canyon’s manager, the Denver Water Board’s decision clearly and inequitably shifts costs from Denver citizens to suburban customers.  The estimated amount of the subsidy for Denver rate payers is $4,000,000.  Individually for Platte Canyon customers, the difference between the adopted rates and the modeled rates is $27 per year.
     
    The Platte Canyon Board of Directors will continue to vigorously oppose Denver Water’s efforts to shift costs to suburban users and will continue to evaluate its options to protect District customers from further overcharges.
     
    A comparison between existing 2011 water rates and the water rates that will go into effect on January 1, 2012 is shown below.
     
    Block
    Monthly Consumption
    (gallons)
    2011 Rate
    (per 1,000 gal.)
    2012 Rate
    (per 1,000 gal.)
     
    1
    0 - 11,000
    $2.36
    $2.49
    2
    12,000 - 30,000
    $4.72
    $4.98
    3
    31,000 - 40,000
    $7.08
    $7.47
    4
    over 40,000
    $9.44
    $9.96