To offset increased operating costs and new and expanded services, the Denver RTD is considering a fare increase for the first time since 1997. The increase would bring bus and light rail fares to $1.40 by January 2005 and express and regional bus fares to $3 and $4, respectively, by January 2004. Local fares are now 75 cents off peak and $1.25 during peak hours. The earliest the fares would increase is 2002 and they would boost revenue at the system by 15%. A separate proposal would cap local fares at $1.25 in 2005. The RTD will hold 15 public hearings, one in each district, on the proposals next month.