View From a Height
Commentary from the Mile High City
Saturday, May 15, 2004

Water Woes 

This, from Denver Water:




The Citizen’s Advisory Committee will host a public meeting to inform and collect comments from the public on the proposed service charge increase.


In response to the Board’s April 14, 2004 declaration of a Stage II drought and associated drought restrictions, staff has conducted a preliminary analysis to calculate potential revenue shortfalls that may result from compliance with the Board’s mandatory drought restrictions. This analysis showed that potential shortfalls would range between $8-$32 million.


The analysis also revealed that Denver Water’s cost structure is primarily fixed costs (95%), when compared to its variable costs (5%). Conversely Denver Water’s rate structure recovers 5% of its revenue through its fixed service charge, and 95% of its revenue through its variable consumption charge.




Translation: You people have done such a good job conserving water that we'll have to raise your rates. Gee. Thanks, guys.



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