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1. Why are rates increasing?

To fund essential repairs and upgrades to Denver Water's system and to fund a number of multi-year projects, such as replacing aging pipes and failing underground storage tanks, upgrading water treatment facilities and rehabilitating Antero Dam in Park County.

For additional information, visit denverwater.org/BillingRates/RatesCharges/2016-rates/

2. Why is the rate structure changing?

1. We're moving to a more individualized structure based on average winter water consumption; however, each customer's bill will still depend on how much water they actually use.

2. Denver Water's priorities for 2016 and the changes to the rate structure will allow us to continue improving our water system while ensuring essential water use remains affordable for our customers.

3. Denver Water has carefully created a new rate structure that will begin to shift our revenue from such a heavy reliance on usage to a more stable fixed fee over the next few years.

4. More stable revenue will mean that the future rate increases can be minimized and be less susceptible to increases due to fluctuations in outdoor water use resulting from unpredictable weather.

5. The new structure will provide a more stable source of revenue that Denver Water needs to continue to collect, treat and deliver safe, reliable water to its customers.

Fixed Monthly Charge: based on meter size ($8.79 for a 3/4" meter, or 1 SFE)
1st Tier: average indoor use/essential use (e.g. water for hygiene, drinking, etc.)
2nd Tier: outdoor use
3rd Tier: excessive use

3. What is Average Winter Consumption (AWC) and how is it determined?

Because water used indoors is for cooking, bathing, drinking and hygiene, Denver Water considers this to be essential for human life and assign this the lowest rate. We will calculate indoor use by taking an average of winter consumption (using January - March bills) to determine how much water you need indoors. Each month, the amount of water you use up to your AWC will be charged at the lowest rate per 1,000 gallons. For residential customers, the minimum possible AWC is 5,000 gallons and the maximum AWC is 15,000 gallons.

4. Why did you choose January through March to determine AWC?

January through March billing period represents indoor water use - such as bathing, cooking and flushing toilets. Indoor water use is essential for human life and does not include nonessential water use such as lawn watering. With this new structure, essential use is charged at the lowest rate.

5. What is the fixed monthly charge (formerly known as the "service charge")?

The fixed monthly charge is based on the size of the meter at a property. The increase in this monthly charge is crucial to achieving a more stable revenue so that future rate increases can be minimized and less susceptible to increases due to fluctuations in outdoor water use resulting from unpredictable weather.

6. What is my meter size?

Please contact Denver Water for information on your meter size. The meter size will be added to bills as soon as possible.

7. Can't I intentionally increase my winter usage to gain a higher tier 1?

1. Using excess water January through March will cause sanitary sewer charges to increase for the entire year. Sanitary sewer charges are also based on winter water consumption.

2. The point of average winter consumption is to keep essential indoor use affordable.

3. Conservation is still a priority and it is important to ensure the stability of our current and future water supply. We strongly discourage water waste.

4. Water use has declined 22% in Denver Water's service area over the last decade. We all need to continue efforts to create a culture of conservation. For more information, check out denverwater.org/Conservation/

8. I'm a low user, isn't this benefitting higher users?

The focus remains on efficient water use by keeping a tiered structure that charges more for inefficient use. In other words, the more you use, the more you pay. It is important, however, to ensure essential indoor water use is affordable for everyone from individuals to larger families. Higher use is not always the result of inefficiency. Often times, it is the result of more household members. For example, it is normal for a family of 4 to use 4 times as much water indoors, which is essential to life, as a household with only 1 person.

9. What do the rates and fixed monthly charge pay for?

Denver Water runs on revenue. We are not a tax-supported utility, and our charter prohibits operating for profit. The rule is simple: charge rates that cover service costs. Building a rates program that follows that rule is not so simple. Denver Water approaches the task by identifying some specific customer classes and then determining the cost of providing service for each class. Based on that determination, rates are adjusted.

10. Where can I find more information about the 2016 water rates?

Information is currently available through:

1. Our blog: denverwater.org/2015/12/16/your-water-bill-different-path-same-goals/

2. denverwater.org/BillingRates/RatesCharges/2016-rates/