Colorado Springs Utilities will embark on a five-year plan beginning in 2025 to invest an estimated $3.9 billion in its system.
In November, Colorado Springs City Council voted unanimously to approve Springs Utilities’ 2025 budget and five-year rate case. It’s the first time in recent history the community-owned utility has presented a multi-year rate case for its base rates. Base rates are typically updated once a year.
Base rates support the pipes, wires and plants that make it possible to provide safe and reliable utility services. The rates are based on the costs of serving customers. As a community-owned utility, Springs Utilities does not profit from customer rates.
Approved Budget and Rates
Capital projects make up nearly 34% of Springs Utilities’ $1.8 billion budget for 2025. The planned infrastructure investments are necessary to meet regulations, support community growth and maintain system reliability. Examples of major projects are the expansion of Montgomery Reservoir; 1,700 megawatts of new natural gas and renewable generation plus battery storage to support carbon-reducing regulations, and the Eastern Wastewater System Expansion project.
The five-year rate case includes base rate increases of 6.5% for electric and water, 4% for natural gas and 9% for wastewater for each year from 2025 to 2029. Changes take effect Jan. 1, 2025, for base rates and development fee changes.
This includes new and updated review and design fees, and electric and natural gas extension fees paid by developers to share the cost of growth.
Energy Wise Time-of-Day Rates
Also effective Oct. 1, 2025 are changes to the time-of-day Energy Wise rate. With Energy Wise rates, customers pay different rates for electricity based on the time of day it is used.
For businesses, this will include changes to demand charges and adjustments to the on-peak time (5 p.m. to 9 p.m. Monday through Friday, excluding holidays).
This rate option encourages customers to shift electric use which helps reduce high demand and the need for Springs Utilities to purchase power during periods when it is most expensive.
