What is a participation charge?

As communities grow and develop, new infrastructure — such as mains, hydrants, pump stations or storage facilities — may be required to ensure safe, clean drinking water for new customers. Denver Water’s Operating Rule 2.08 states that the costs of this new infrastructure should be financed by the direct users rather than through increased rates for all customers. This financing is managed through a participation charge. The facilities and infrastructure installed will be owned and operated by Denver Water as part of the overall system.

How are participation charges calculated? 

Applicants for water service within the City and County of Denver may be required to participate in the cost of conduits to provide water from the nearest available source to the community to be served. 

Applicants for water service outside the City and County of Denver may be required to participate in the cost of conduits, pump stations and treated water storage facilities to provide water from the nearest available source.

To calculate the participation charge, staff assesses the construction costs of conduits based on the size and length required to serve the area. The size of the conduits is determined by the projected maximum hourly demand for the area and our Engineering Standards regarding head loss criteria for flow through a pipe. To estimate the number of 3/4-inch equivalent taps needed to support the water demand, we use a standard method that relates water demand to tap capacity. By using maximum hourly water demand, flow rate and estimated total construction cost, we arrive at a cost per tap equivalent.

In addition to participation charges, system development charges are required to receive water licenses within the area.

See Denver Water’s Operating Rules for more information.