Cheyenne Water and Sewer Rates Are Going Up in October

Starting October 1, every business and resident connected to Cheyenne's water system will see higher utility costs. The Cheyenne City Council approved the adjustments on June 8, and with fall approaching, now is the time to understand what's changing and what it means for your bottom line.

What's Changing

Your water and sewer bill has two components: a monthly service fee based on your meter size, and a volumetric charge based on how much water you actually use.

Both are going up — but not the same way for everyone.

The monthly service fee increases 3% for all customers, residential and commercial alike. That's the flat charge every customer pays regardless of usage.

The volumetric rate — the per-1,000-gallon charge — is increasing for residential customers only this cycle. Standard residential tiers go up 5%, and higher usage tiers increase 9%. Commercial and industrial volumetric rates are not changing this round.

For the average residential customer using around 3,000 gallons per month, the Cheyenne Board of Public Utilities estimates the combined impact at about $2.55 more per month. That figure comes directly from BOPU and reflects the service fee increase only — residential customers with higher water usage will see more.

For businesses, your increase depends entirely on your meter size. The larger the meter, the higher the service fee — and that fee is going up 3% across all ten meter sizes, from the standard 5/8-inch used by most small businesses up to the 12-inch meters serving heavy industrial operations.

This Is Part of a Longer Pattern

If this feels familiar, it should. Cheyenne has seen water and sewer rate increases every year for at least the past five years. In 2024, BOPU raised water rates 8% and sewer rates 10%. In 2025, the increases shifted to service fees only — $3 per month for water and $2 per month for sewer — with no volumetric increase that year.

This year brings a 3% service fee increase for all customers, which is the most modest fee adjustment in the recent cycle. However, the return of volumetric rate increases for residential customers means some households will feel more of an impact than they did last year. It's also worth noting that BOPU shifted from January 1 to October 1 effective dates starting last year — so if your budgeting has historically accounted for January increases, adjust your planning accordingly.

So why does this keep happening?

The BOPU is responsible for roughly 730 miles of water mains, 327 miles of sanitary sewer lines, a water treatment plant, two water reclamation facilities, and 40 groundwater wells. That system doesn't maintain itself. Construction costs, chemical prices, and evolving regulatory requirements have all climbed steadily — and Cheyenne's growth has meant ongoing investment in new infrastructure on top of routine maintenance.

Recent projects have included a new water storage tank in northeast Cheyenne, pipeline replacements, sewer rehabilitation across multiple areas of the city, and a new hydroelectric generator at the Sherard Water Treatment Plant to reduce long-term energy costs.

None of it is funded by taxes. The BOPU operates entirely on rates and fees — every dollar that goes into maintaining or expanding the system comes directly from customer bills.

What About Data Centers?

It's a question coming up in community conversations right now, so it's worth addressing directly.

Data centers are commercial customers. They pay water and sewer bills and will see the same 3% service fee increase as every other customer. They are not exempt.

City officials have stated publicly that large industrial users, including data centers, are required to pay for the infrastructure costs associated with serving their operations — those costs do not get passed to other ratepayers. Data centers currently account for a small percentage of Cheyenne's overall municipal water consumption according to figures cited by city officials during recent public meetings.

What is driving the rate increases hitting businesses and residents this fall is the same thing that has driven increases for the past several years: the ongoing cost of maintaining and expanding a water and sewer system that serves a growing city.

One Thing Worth Understanding About Commercial Rates

Residential customers pay a tiered volumetric rate — the more water used, the higher the per-gallon cost. It's designed to encourage conservation.

Commercial and industrial customers pay a single flat rate per 1,000 gallons regardless of volume. That means there's no escalating penalty for higher usage, but also no built-in rate incentive to reduce consumption. If water is a meaningful operating cost for your business, efficiency improvements are worth evaluating on their own merits — not because the rate structure will punish you for using more, but because the base cost is now higher than it was.

What to Do Before October 1

Pull your most recent BOPU utility bill. Your meter size is listed there — knowing it tells you exactly which service fee applies to your account. If you're not sure how to read your bill, BOPU's customer service line is 307-637-6460.

From there, look at your average monthly water consumption. Businesses where water is a significant operating cost — restaurants, laundromats, car washes, manufacturers, landscaping operations — should factor the October increase into budget planning now rather than absorbing it as a surprise.

One more thing worth doing before fall: check for leaks. Any undetected leak in your facility means you're paying the new higher rate on wasted water starting October 1. BOPU has leak detection resources available at cheyennebopu.org.

Current rate information for businesses is available at cheyennebopu.org/Business/Billing-Rates/Water-Sewer-Rates.

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Sources:

• Cheyenne City Council — June 8, 2026 Agenda Item 12, Water and Sewer Rate Ordinance (Supporting Document PDF): cheyenne.granicus.com/MetaViewer.php?view_id=5&event_id=1419&meta_id=148375

• Cheyenne Board of Public Utilities — Business Billing & Rates: cheyennebopu.org/Business/Billing-Rates/Water-Sewer-Rates

• Cheyenne Board of Public Utilities — Board Projects: cheyennebopu.org/About-Us/Board-Projects

• Wyoming News Now — Cheyenne water and sewer rates increase this October: wyomingnewsnow.tv/news/cheyenne-water-and-sewer-rates-increase-this-october/article_249b295c-8107-48bb-94b9-90762b8d767e.html

• Wyoming Tribune Eagle — BOPU: Water and sewer rates to increase effective Oct. 1: wyomingnews.com/news/local_news/bopu-water-and-sewer-rates-to-increase-effective-oct-1/article_7c793992-5212-432f-a622-8d534df75f6a.html