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Denver is turning up the heat to incentivize water conservation this summer.
Denver Water approved the implementation of drought pricing on Wednesday, April 8. This comes two weeks after the agency declared a Stage 1 drought, imposing mandatory watering restrictions on customers beyond the typical summer limits for the first time since 2013.
“Implementing temporary drought pricing is not a step we take lightly,” says Alan Salazar, CEO of Denver Water. “We haven’t needed to use this tool in more than twenty years — since the historic drought of 2002-04 — and conditions surrounding this year’s snowpack and potential runoff are shaping up to rival, and possibly be worse than, those years.”
Colorado is experiencing its worst year for snowpack in recorded history following its warmest winter on record, according to the state climatologist. Denver Water depends on mountain snowpack for 90 percent of its water supply, serving 1.5 million people in and around the city.
Denver Water’s supply system depends primarily on snowmelt in the South Platte and Colorado River watersheds. As of Wednesday, snowpack within the company’s collection area is at 4 percent of normal for the South Platte River Basin and 44 percent for the Colorado River Basin, according to Denver Water. Conditions are only getting worse: The Colorado River snowpack declined nearly three inches due to record heat in late March.
“This is the fastest decline we’ve seen before April 1,” said Nathan Elder, water supply manager at Denver Water, during the Board of Water Commissioners meeting on Wednesday. “We might see the lowest runoff that we’ve ever seen because of these snowpack conditions.”
Denver Water is seeking to reduce total water demand by 20 percent through April 30, 2027, and drought pricing is meant to help reach that goal.
Here’s what you need to know:
When Will the Higher Prices Start?
Drought pricing goes into effect in May, but it won’t be reflected in water bills until June 1. So you won’t see the increased prices right away, but it will apply to your water usage starting next month.
Drought pricing will remain in effect through April 30, 2027, unless the Denver Board of Water Commissioners moves to end or extend it.
What Kind of Water Use Is Affected?
Drought pricing is supposed to only apply to outdoor water use, with essential indoor water use like bathing and cooking exempted.
To do that, Denver Water determines each customer’s average monthly water use during the winter (when there is little or no outdoor watering) and classifies this water use as “tier one.” Water use that falls within tier one will be exempt from the drought charges.
When customers go beyond their average winter water use, it is classified as “tier two.” Residential customers will be charged an extra $1.10 per 1,000 gallons of water used in tier two per month. Tier two is supposed to cover normal outdoor watering.
If customers use over 15,000 gallons of water per month above their average winter use, they enter “tier three.” For tier three water use, residential customers will be charged an extra $2.20 per 1,000 gallons. Tier three is supposed to apply to excessive water use.
Those charges are for residential customers; the amounts may vary for other customer types. For example, the City and County of Denver will be charged $0.55 per 1,000 gallons over its winter average for domestic water use and its summer average for irrigation water use.
How Will This Change My Monthly Bill?
The drought charges will be added on top of a customer’s existing 2026 water rates. Each individual’s monthly water bill will vary depending on where they live and how much water they use.
If an average single-family residential customer in Denver reduces their annual water use by 20 percent (from 104,000 gallons to 82,000 gallons), the drought charges would total $29, raising their annual water bill from $574 to $603, according to Denver Water estimates.
If the customer continues to use 104,000 gallons per year (the average use by residential customers), the drought charges would be $45, increasing their annual bill from $684 to $729.
For the average single-family residential customer outside of Denver, reducing water use by 20 percent would result in $33 of drought charges, increasing the annual bill from $718 to a $751. If they don’t conserve water, the drought charges will total $52, raising their annual bill from $877 to $929.
“The more you conserve, the less these charges will impact your bill,” said Fletcher Davis, Denver Water rates manager, during Wednesday’s board meeting.
Where Will the Money Go?
The money will go to Denver Water, helping to offset the revenue shortfall from the mandatory water restrictions. If customers reduce water usage by 20 percent as required, Denver Water’s revenue will also fall by 20 percent.
Drought pricing will not fully close the funding gap, according to the agency. To make up the difference, Denver Water has reduced spending through operational changes, including implementing a hiring freeze, canceling its internship program, reducing professional services, and reviewing maintenance and other projects to see which ones could be deferred.
“Our priority is still providing essential services through what could be a multi-year drought,” Davis said.
How Can I Use Less Water?
To save water and avoid pricier bills, Denver Water recommends waiting to turn on sprinkler systems until mid-to-late May, swapping grass and other plants that require heavy watering with alternative landscaping, and following the mandatory water restrictions that limit outdoor watering to twice per week.
Denver Water offers rebates on water-saving low-flush toilets and high-efficiency sprinkler nozzles, in addition to discounts on water-wise gardening kits.
For those struggling to pay their water bill, information about payment assistance is available at denverwater.org.
