Tap Fees
The utility segment provides two revenue streams, primarily driven by Tap Fees and Usage Fees. Tap Fees represent one-time system development fees that homebuilders pay, typically at the point of acquiring a building permit. These fees defray the costs associated with acquiring water rights and constructing wholesale water and wastewater facilities. In the Denver area, Tap Fees have experienced consistent increases, surpassing inflation rates and are largely attributed to the growing scarcity value of water and the heightened competition for water rights.
To ensure competitive lot pricing and to align with our commitment to responsible water management, we employ a "Water Budget" methodology. This approach involves calculating the anticipated water demand for each lot, taking into account various factors such as lot size, house dimensions, impervious area, and irrigated areas. By implementing this methodology, we aim to strike a balance between maintaining competitiveness in lot pricing and addressing the increasing challenges and costs associated with water scarcity.
For the most up-to-date information on current rates and charges, we encourage you to visit the website at rangeviewmetro.org. This will provide comprehensive details about Tap Fees and other relevant aspects of our utility services.
Metered Water Usage
Our utility segment generates recurring revenues through metered water and sewer usage from our customers. To encourage conservation, we employ a monthly billing system that features an inclining water pricing scale. This conservation incentive scale is designed to promote responsible water usage among our customers and cost efficient pricing of this vital resource.
On average, our annual water revenues amount to approximately $1,000 per single-family-equivalent connection, and sewer revenues average around $500 per connection annually. Collectively, these contribute to a combined revenue of $1,500 per connection, emphasizing our commitment to sustainable water practices and providing cost efficient pricing of this essential utility service to our community.
Wastewater Treatment
Due to the scarcity of water in Denver, we use and reuse our water supplies. The Company recently complete a $10 million state-of-the-art water reclamation facility which treats 100% of the Sky Ranch Community’s wastewater into reclaimed water for reuse as outdoor irrigation and industrial water supplies. Recycling our water allows us to use and reuse our water supplies multiple times protecting, preserving and conserving our most valuable natural resource.
Industrial Bulk Water
In addition to serving our domestic residential and commercial customers, we also provide reuse and raw water to industrial customers for oil and gas activities. We have invested in raw water and reuse water storage reservoirs together with high-capacity delivery capabilities to deliver high volumes of water to oil & gas operators. Our water supplies, service areas, and infrastructure sit atop of one of Colorado’s most productive shale oil reserves where O&G operators have invested billions of dollars into developing and understanding the oil reserves. The field has miles of O&G collection infrastructure and over 100 producing wells and will continue to develop thousands of wells over the next 50 years which will need continuing water for its activities.
