Denver's New Drought Pricing Affects Bills

Denver Water’s temporary drought pricing will begin showing up on June 2026 bills because the surcharge applies to water used in May, the utility said on its rates page and in an April 8 board action. The added charge applies only to higher tiers of outdoor water use, not to the first tier that Denver Water says covers essential indoor use such as bathing, cooking and flushing toilets. The utility adopted the pricing after declaring a Stage 1 drought on March 25 and asking customers to cut overall water use by 20%. Officials said the measure is meant to conserve supplies and help maintain the utility’s finances during a drought. ### Why are June bills changing now? April 8 is the date the Denver Board of Water Commissioners approved the temporary drought pricing for outdoor water use. Denver Water said the surcharge starts with May water use and appears on June bills, remaining in effect through April 30, 2027, unless the board takes further action. March 25 is the date the board declared a Stage 1 drought. Denver Water said that declaration followed severe drought conditions, historically low snowpack and concern about reduced spring runoff available to meet customer demand. ### Which water use gets the surcharge? Tier 1 water use is exempt from the drought charge, according to Denver Water’s 2026 residential rates page. The utility says Tier 1 is meant to cover essential indoor water use and is based on each customer’s average winter consumption from January through March, with a minimum threshold of 5,000 gallons and a maximum of 15,000 gallons. Residential customers will pay an added $1.10 per 1,000 gallons on Tier 2 use and $2.20 per 1,000 gallons on Tier 3 use, Denver Water said. Those charges are added on top of the utility’s existing 2026 water rates. ### How much could higher-use households pay? The key number is the surcharge rate, not a flat monthly fee. Customers who stay within Tier 1 avoid the temporary drought charge, while customers with heavier outdoor watering move into Tier 2 and Tier 3, where the added per-1,000-gallon charges apply. May 18 brought a possible offset for some households. Denver Water said recent rain and cooler weather had kept landscapes wet enough that customers could leave sprinkler systems off for at least another week, which could reduce outdoor use before June bills are calculated. ### Why did Denver Water say it needed drought pricing? Alan Salazar, Denver Water’s CEO/manager, said on April 8 that the utility had not used this pricing tool in more than 20 years, dating to the 2002-04 drought. He said the charges are intended to “signal” the premium value of water during drought while protecting essential indoor use. Denver Water said the system serves 1.5 million people in Denver and surrounding suburbs. The utility tied the drought response to unusually poor snow conditions, saying the 2025-26 snowpack peaked earlier than normal and at some of the lowest levels seen in decades. ### What do the drought conditions look like? May 18 data from Denver Water showed the Colorado River Basin snowpack peaked at 58% of normal on March 18, while the South Platte River Basin peaked at 42% of normal on March 17. The utility said streamflow forecasts called for runoff at 10% to 40% of normal in 2026. As of May 18, Denver Water said its reservoirs were 79% full, compared with an average of 86% for that time of year. Greg Fisher, Denver Water’s manager of demand planning and efficiency, said recent wet weather had helped landscapes but “in no way” made up for the lack of winter snowpack. ### What should customers watch next? April 30, 2027 is the current end date for the temporary drought pricing unless the board acts sooner. Denver Water said customers can track the rates, drought pricing details and outdoor watering rules on its billing, drought and conservation pages. June bills will reflect May usage, and Denver Water has continued to urge customers to keep automatic irrigation systems off when rain and cooler temperatures provide enough moisture. The Stage 1 drought declaration and mandatory watering schedule also remain in effect unless the board changes them.