Baseline Usage
300 kGal
Previous Monthly
$0.00
New Monthly
$638.00
Annual OpEx Delta
+$7656.00
The Policy Shift
On March 25, 2026, Denver Water activated Stage 1 mandatory drought restrictions for all customers, driven by historic low snowpack across the Colorado Front Range. Commercial and multi-family properties are restricted to outdoor watering on Tuesdays and Fridays only, with no watering between 10 a.m. and 6 p.m. More significantly, the Denver Board of Water Commissioners approved temporary drought pricing effective May 2026 through April 2027. Tier 2 usage (above essential indoor use up to 15 kGal/month) incurs an additional $1.10/kGal surcharge, while Tier 3 usage (above 15 kGal/month) incurs $2.20/kGal.
The Math: Commercial Financial Impact
Using integer-cent math at a baseline of 300,000 gallons/month: Tier 1 (essential indoor, ~5 kGal) is exempt from the surcharge. Tier 2: 10 kGal × $1.10 = $11.00/month. Tier 3: 285 kGal × $2.20 = $627.00/month. Total monthly surcharge: $638.00. Annual surcharge impact: $7,656. This surcharge is additive — it layers on top of Denver Water's existing 2026 base rates. For facilities with significant outdoor water use (car washes, hotels with landscaping, golf courses), the impact scales proportionally.
Mitigation Strategy
Smart Valve technology reduces metered water volume by 20% or more by eliminating entrained air before it reaches the meter. For a Denver facility at 300 kGal/month, a 20% reduction drops metered usage to 240 kGal/month — reducing both base rate charges and the drought surcharge exposure. At the surcharge tier structure, reducing from 300 to 240 kGal/month saves approximately $1,584/year in surcharges alone, plus $7,200+/year in base rate savings. Total annual savings: $8,784+ with a payback period under 10 months.
Calculate your Denver facility's total exposure to drought surcharges and base rate increases.
The Smart Valve compresses air in your water line, ensuring you only pay for actual liquid. See exactly how much your facility could save with our free ROI calculator.
Frequently Asked Questions
What is Denver Water's drought surcharge for 2026?
Denver Water approved temporary drought pricing effective May 2026 through April 2027. Tier 2 usage (above essential indoor use, up to 15 kGal/month) incurs an additional $1.10 per 1,000 gallons, and Tier 3 usage (above 15 kGal/month) incurs an additional $2.20 per 1,000 gallons on top of existing base rates.
How much will Denver's drought surcharge cost my business?
A commercial property in Denver consuming 300,000 gallons per month will pay an additional $638/month or $7,656/year due to the temporary drought surcharge. Facilities with higher outdoor water usage will pay proportionally more.