The utility \u2014 which serves more than 1.5 million people across the Denver metro \u2014 has not implemented drought pricing since the historically dry year of 2002. But it\u2019s not alone, with Aurora Water this week also adopting drought surcharges<\/a>.<\/p>\n \u201cDrought charges signal to our customers the premium value of water in a drought, while exempting essential indoor water use,\u201d Alan Salazar, Denver Water\u2019s CEO, said in a news release Wednesday. \u201cWe haven\u2019t needed to use this tool in more than 20 years \u2026 and conditions surrounding this year\u2019s snowpack and potential runoff<\/a> are shaping up to rival, and possibly be worse than, those years.\u201d<\/p>\n How will the extra charges work?<\/p>\n The cost to customers will depend on how much water each household uses. Customers who use more water will pay higher rates.<\/p>\n Every year, Denver Water calculates each customer\u2019s average monthly indoor water use by averaging the water use listed on bills from January, February and March \u2014 when there is very little outdoor water use.<\/p>\n Beginning in May, customers will pay a higher rate for water usage that is greater than that indoor usage average. Denver Water will charge customers<\/a> based on three tiers of water usage that it already uses to disincentivize excessive consumption:<\/p>\n Under drought pricing<\/a>, residential customers will pay an additional $1.10 per 1,000 gallons used in Tier 2 and an additional $2.20 per 1,000 gallons used in Tier 3.<\/p>\n How will this affect your bill?<\/p>\n For customers inside Denver city limits, the drought pricing will increase the Tier 2 rate from $5.44 to $6.54 per 1,000 gallons once water usage has exceeded the winter baseline. The Tier 3 rate will rise from $7.25 to $9.90 per 1,000 gallons used in that category.<\/p>\n The Tier 1 water usage rate of $3.02 per 1,000 gallons will not change under drought pricing.\n<\/p>\n Denver Water customers who live in the suburbs pay different base rates but will see the same drought pricing increase<\/a>.<\/p>\n Denver Water estimates that a single family\u2019s annual water bill will rise about $30 if it reduces water usage by 20% over the year. A family that does not cut its water usage could see its annual bill rise by $45.<\/p>\n Other types of customers \u2014 like irrigators and nonresidential users \u2014 will also pay drought fees.<\/p>\n\n
![\"Denver](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2026\/04\/tdp-l-denverwater-01.jpg\")
<\/a>Denver Water’s service area, outlined in red on the map, includes the city of Denver and several suburban areas, totaling 1.5 million residents. (click to enlarge) (Courtesy of Denver Water)<\/p>\n