Reading your bill with drought charges

For Denver Water customers, June water bills will be landing in email inboxes and mailboxes across the city and surrounding suburbs, and for the first time in more than 20 years, those bills include drought charges for outdoor water use. (See our service area.) 

The background

To help stretch existing water supplies and incentivize customers to cut water use by 20%, Denver Water’s board on April 8, 2026, implemented drought pricing — added on top of existing water rates — starting with May outdoor water use and reflected on June bills. Drought pricing will remain in effect until April 30, 2027, or until the board takes further action. 

The drought charges on outdoor water use follow this year’s historically low winter snowpack and a spring runoff that was a mere trickle of water. That means the amount of water stored in Denver Water’s reservoirs will drop over the next year as the water is used by 1.5 million people who depend on the utility for clean, safe water. 

Essential indoor water use is exempt from drought pricing. Denver Water expects that customers’ success in reducing water use and stretching our existing supplies will result in reduced revenue for the utility. Denver Water is reducing its budget in anticipation of that and doesn’t expect drought charges to fill the gap.

That’s the background, let’s look at the bill.

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1: Account information: 

• Billing date: The date Denver Water reads your water meter.
• Account number: The account number for the property needed to set up a self-service Denver Water Online account and make a payment.
• Customer ID: A unique customer identification number for owners, tenants and property managers to set up a self-service Denver Water Online account and make a payment.
• Due date and amount due: The bill is considered delinquent six days after the due date.

2: Water use:

• Rate: You will see two descriptions here. One is for the rate category and the other for the service type. Customers are charged based on their rate category and service type, which define how the water is used at a property. There are three rate categories: residential, nonresidential (commercial and multiunit properties) and irrigation. The service types are either: “Inside City” for Denver customers, or “Total Service” or “Read and Bill” for suburban customers who receive a bill from Denver Water. 
• Average winter consumption: This is the calculation of the monthly water consumption and number of days in the billing period on bills dated January, February and March. Your Tier 1 rates are based on your average winter consumption.  
• Billing period, meter information and consumption: We use billing dates, number of days and meter information to determine consumption. Denver Water charges for water in 1,000-gallon increments and rounds down to the nearest 1,000 gallons. (For example, if this month’s consumption is 2,999 gallons, this month’s bill will reflect charges for 2,000 gallons and the remaining 999 gallons will be charged on next month’s bill.)

3: Your water tiers: 

Denver Water’s rate structure has three tiers based on the amount of water used. The tiers are designed to keep essential indoor water use for bathing, cooking and flushing toilets affordable while encouraging water conservation outdoors.

• Tier 1: This rate is based on your average winter consumption, which represents essential indoor water use. As noted above, average winter consumption is determined by the average of your billed water use for the months of January, February and March, and is recalculated each year. The Tier 1 allotment range is 5,000 to 15,000 gallons per month and is individualized to each customer. If a customer’s average winter consumption is less than 5,000 gallons per month, the customer will only be charged for what is used and their Tier 1 allotment will be set at 5,000 gallons per month.
• Tiers 2 & 3: This is water use above the average winter consumption, or nonessential water use for outdoor irrigation that is charged at higher rates. The Tier 2 allotment is 15,000 gallons, which provides sufficient water for efficient outdoor irrigation. Tier 3, which is water use above the sum of a customer’s Tier 1 plus Tier 2 usage, signals potentially excessive outdoor water use.

4: Temporary drought charges: 

In April 2026, the Denver Board of Water Commissioners implemented temporary drought charges for Tiers 2 and 3, which reflect outdoor water use, to signal the value of water in a drought and help incentivize saving water. The temporary drought charges are added on top of the existing 2026 water rates.

• Tier 1: Essential indoor water use is EXEMPT from drought charges.
• Tier 2: Additional $1.10 per 1,000 gallons. 
• Tier 3: Additional $2.20 per 1,000 gallons.

5: Fixed monthly charge: 

The fixed monthly charge is based on meter size and helps ensure Denver Water has a more stable revenue stream to continue the necessary water system maintenance and upgrades to ensure reliable water service.

6: Consumption history: 

Water usage over previous 12 months and this month’s consumption compared to the same month last year.

Denver Water also understands that staying current on your bill can be challenging at times. If Denver Water customers keep their balance below $100, they are not at risk of having their water service turned off. Also, the utility’s Customer Care representatives are experts in helping customers navigate unique circumstances. They can be reached via this contact form or by calling 303-893-2444.