Fix Wellington's Water
The high cost of our water bills is due to the North Poudre Irrigation Company (NPIC) contract. In 1983 Wellington signed a contract with NPIC to guarantee 275 acre-feet (AF) of water, or 89.6 million gallons, per year to supply the Town. In return, the town gave up all its NPIC shares, making Wellington one of only a small handful of communities in Colorado that does not own its water.
Town leaders in 1983 did not consider the long-range impacts of this contract. As the town’s population grew, it soon required more than the guaranteed 275 AF. This is where the contract became a problem for the town. After the guaranteed 275 AF, the town could purchase additional water at a price that was determined in part by the current price of NPIC shares, and the current interest rate for farm loans, two arbitrary variables that have absolutely no impact on NPIC's cost to deliver water to Wellington.
These variables were not a problem at first because NPIC shares were relatively inexpensive, and the interest rate was fairly stable. Today, however, a share of NPIC water sells for more than $250,000, and interest rates have been rising since 2020. Because of this, our NPIC water costs have growth 600% since 2015. It’s no wonder your utility bills are so high.
How Wellington can fix its water:
The solution requires action on two fronts: First, we must negotiate new terms with NPIC. Secondly, we must develop alternative water supplies.
For the past three years Wellington has been in negotiations with NPIC. Progress was slow at first because NPIC had no incentive to renegotiate a contract that was bringing in millions of dollars every year. However, they now realize that Wellington residents need relief, and negotiations are proceeding. We have made a few inroads, and NPIC has made several concessions, but we will not get everything we are asking for.
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We are also in negotiations with a new water supplier that will ensure Wellington owns its water while reducing the reliance on expensive NPIC contract water. Developing this new water source will take several years and will be very expensive.
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So, how do we pay for the new water source? That has yet to be determined, but will likely utilize a portion of the savings from a new NPIC contract. Costs will also be paid by the development community in the form of impact fees. In any event, do not expect your utility bills to decrease any time soon.
In the meantime, there are several things residents can do to reduce or better manage water costs. Contact Town Hall and enquire about:
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Equal billing
Irrigation audits
Leak detection kits
Low-flow faucet replacements
Hardship Utility Grants (HUG)
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