Denver’s new drought water pricing starts June

Denver Water will start adding temporary drought charges to customers’ bills in June, with the new pricing tied to water used in May, according to the utility’s drought pricing page. The Denver Board of Water Commissioners approved the pricing on April 8 as part of its Stage 1 drought response after declaring drought conditions on March 25. The utility said the charges are aimed at outdoor and other nonessential use, while essential indoor use is exempt. The pricing is set to remain in effect through April 30, 2027, unless the board acts sooner. ### When will customers actually see the new charges? June bills are the first ones expected to show the drought pricing because the charges apply to May water use, Denver Water said. The utility has framed the change as a temporary surcharge layered on top of its existing 2026 rates rather than a rewrite of the underlying rate schedule. April 8 was the date the board approved the pricing resolution, and March 25 was the date it declared a Stage 1 drought. (denverwater.org) Denver Water said the Stage 1 declaration seeks a 20% reduction in water use and is in force through April 30, 2027, or until further notice. ### What part of a household bill is changing? (denverwater.org) Residential customers will pay an added $1.10 per 1,000 gallons on Tier 2 water use and $2.20 per 1,000 gallons on Tier 3 water use, Denver Water said. Tier 1 use, which the utility defines as essential indoor water use, is exempt from the drought charge. Denver Water said each household’s Tier 1 threshold is based on its average winter consumption from January, February and March bills, when outdoor watering is typically low or absent. (denverwater.org) Usage above that level moves into higher-priced tiers that are intended to capture more discretionary outdoor demand. (denverwater.org) ### What is Denver Water saying the surcharge is for? Alan Salazar, Denver Water’s CEO/manager, said on April 8 that the utility does not use drought pricing lightly and views it as one of several tools to respond to drought conditions and encourage conservation. Salazar said the charges are meant to signal “the premium value of water in a drought” while leaving essential indoor use untouched. (denverwater.org) Denver Water said the system serves 1.5 million people in Denver and surrounding suburbs and that this year’s low snowpack and reduced runoff outlook drove the board’s drought actions. The utility has also told customers to keep automatic sprinklers off until at least mid- to late May and to hand-water trees and shrubs if needed. ### Are businesses and large properties affected too? (denverwater.org) Business customers and small multifamily properties are also operating under Denver Water’s drought framework. The utility’s 2026 business rate page says the nonresidential Tier 1 threshold is based on average winter consumption, Tier 2 equals four times that average, and Tier 3 covers usage above four times average winter consumption. (denverwater.org) Tuesdays and Fridays are the assigned watering days for multifamily properties, commercial properties, homeowners associations and government properties under the Stage 1 rules, Denver Water said. The utility has also created a 2026 Water Budget Program for some large irrigation customers that need flexibility beyond the standard two-day schedule. (denverwater.org) ### Who can ask for an exception to the standard watering limits? Denver Water said parks, school districts, golf courses and other large nonresidential irrigators may seek approval for water budgets if they cannot meet the two-day-per-week restriction. The program is designed to let eligible customers manage water across multiple properties while still achieving a 20% reduction during the irrigation season from May 1 through Oct. 31. (denverwater.org) June 1 is the current application deadline for the 2026 Water Budget Program, according to Denver Water’s program page. Approved applicants must sign an agreement with Denver Water that sets out the program’s requirements and financial penalties. (denverwater.org) (denverwater.org)