Deer
Creek Water Rates – An Update
November 28, 2005
This note is to update everyone in Deer Creek Farm about the status of the
Colorado Public Utilities Commission’s (PUC) review of our new water
company’s rates. The PUC required Colorado Water Utility (CWU) to
submit a request and justification of the rates (called tariffs) they are
charging us in DCF. That request is called Advice Letter No. 1 and contains
a basis of estimate to justify the rates they charge and a list of operating
rules and regulations for running the DCF water service. That Advice Letter
No. 1 came before the PUC on 16 November 2005 for review. At that meeting
the PUC ruled to suspend the implementation of those rates and set them
for a hearing in front of a judge. That decision is titled C05-1361 and
is available for review on the PUC website. The PUC staff recommended the
hearing based on a number of comments received from DCF residents. Thanks
to all those who commented to the PUC.
What this means is
that CWU will not be able to raise water rates in DCF until the
hearing is over and will have to testify at the hearing as to
why its rates are so high. Anyone in DCF has the opportunity
in the next 30 days to Petition to Intervene in this hearing.
You can do that by calling the PUC at (303) 894-2000 and requesting
a form to fill out and return. If you are approved as an Intervenor,
you can attend all meetings with CWU to discuss their water rates
and can ask them questions about how they came up with them.
I would encourage any and all of you DCF residents to petition
to become an Intervenor. CWU needs to be held accountable by
its customers to justify its excessive rates. I am hoping we
can get CWU to roll back its rates to something more reasonable.
The hearing is scheduled
for 6 March 2005 before an Administrative Law Judge for the Commission.
The hearing will take place at 9:00 AM at the PUC office, 1580
Logan Street, OL-2, Denver, CO 80203. Please make plans to come
and support those of us who will be there to ask the tough questions.
Concerned
About Your Water Costs?
Recently a company called Colorado Water Utility, Inc. (CWU) took
over management and operation of our community water system. Immediately
they sent a letter to us announcing that our water rates would nearly
double. Since then CWU has changed out the water meters to each
one of our houses, and many residents have experienced anywhere
from a 3 to 10 times increase in their July water usage compared
to June. What is going on?
The Table below gives you some idea how bad things are. The Table
compares the average cost per 1000 gallons of water for a typical
annual usage profile of 115,000 gallons for several surrounding
communities.
| Community Or System |
Cost per 1000 gallons |
Total Annual Cost |
| Aurora |
$4.01 |
$460.05 |
| Parker |
$4.72 |
$541.62 |
| Castle Rock |
$4.78 |
$548.93 |
| Elizabeth |
$6.38 |
$732.56 |
| Deer Creek Water Co (The OLD company) |
$3.65 |
$419.68 |
| Colorado Water Utility (Our NEW company) |
$6.61 |
$759.36 |
When we moved into Deer Creek Farm we were told that our water
rates would be kept equal to or lower than our surrounding communities.
As you can see, our new rates are higher than all of our neighbors.
This is not what we expected.
Have any of you heard from CWU why our rates had to be doubled?
There may be a reason for it, but I haven’t heard what it
is. In fact, I haven’t heard much of anything from CWU face-to-face
at all.
After CWU announced the increased rates, many of us began conserving
our use of water. You can drive around the neighborhood and see
the dried up lawns and shrubbery. This is a logical response to
those of us on fixed incomes or trying to make ends meet. This conservation
must have had an effect on the water usage in the community because
in our July bill CWU included a newsletter that had an article in
it that threatened to increase our rates even more if we did not
use more water. I don’t consider that good public relations
from our new water system management company.
My concern is we don’t have many options. Our community is
zoned such that we can’t have private wells. It is not clear
whether there is any State or County agency that has jurisdiction
over private community water systems like ours, so our ability to
have our grievances heard is restricted. I am also concerned that
aggressive water rate pricing by CWU will reduce the attractiveness
of our homes in the resale market. Unfortunately, there are no easy
solutions to this situation. We need CWU to come forward and face
the community and explain its actions and plans for the future.
Let’s all work toward that end.
Bruce McQuaid
41408 Deer Creek Circle
Lot #7
Also from Bruce, a few days later:
Randy Garroutte at the PUC said that we could lodge a complaint
with the Colorado Public Utilities Commission about our water rates
and meter readings. He said Colorado Water Utility (CWU) was going
to file a set of documents about their water company with the PUC
by September 1, 2005. He said the documents are to include their
water rates. I think we should have a set of complaints on file
with the PUC when those documents are filed. The PUC may have hearings
on these documents, and we want to be informed of when those hearings
are and to be included in them.
The URL for the PUC complaint form is
http://www.dora.state.co.us/pls/real/CCTS_oWEB.complaint_process
Go to this web site to make your complaint.
|