So we get this again:
Colorado's largest water utility will raise rates 7.5 percent next year as it seeks to offset rising operating costs and soft water sales among its drought-conscious customers....
The rate increase is designed to cover an estimated $18.5 million shortfall next year, due in part to rising costs and lower water sales.
Since the drought of 2002 struck, the giant utility has been trying to restructure its rate system, charging more to people who use large quantities of water.
So in a state with 140% snowpack last year, where we let 1 million acre-feet of water leave the state in a normal year, we still can't get the Powers That Be to admit that we need more storage. More conservation isn't the solution this year - we had plenty of water. In fact, we've just been told that conservation is the problem.
No. The problems are twofold. First, we need more storage to be able to ride out actual drought years, and to account for the fact that rains may hit the state unevenly.
Second, Denver Water needs to match its revenue structure with its cost structure. Something like 90% of its costs are fixed, while something like 90% of its revenues are variable. There's no way they're going to close that gap by reducing consumption and reducing new investment in "developing water."
Can't anyone here play this game?