Colorado Springs Utilities proposes rate increases, changes in how customers are charged
COLORADO SPRINGS, Colo. (KRDO) – At a Utilities Board meeting on Wednesday, Aug. 21, Colorado Springs Utilities (CSU) will be proposing its 2025 budget and base rate changes – including a change to how customers are charged for electricity.
According to CSU, Springs Utilities does not profit from customer rates as a community-owned utility. Instead, base rates support the infrastructure that makes the utility services possible.
Rate changes
Springs Utilities is proposing 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.
A new "Energy-wise," or time-of-day, rate, will also be proposed. With Energy-wise rates, customers pay different rates for electricity based on the time of day it is used. If approved, this rate would eventually become the standard rate for most customers in late 2025.
CSU said this rate option encourages customers to shift electric use, which helps reduce high demand and the need to purchase power during periods when it is most expensive.
Base rates are typically updated once a year. This year, Springs Utilities will present a five-year rate case.
Budget changes
Springs Utilities said it is facing "historic demands" and plans to add $3.7 billion in infrastructure during the next five years to "meet regulations, support community growth and maintain system reliability."
The 2025 proposed budget of $1.8 billion is 21% more than the 2024 approved budget. Capital projects make up nearly 34% of the budget. You can learn more about those projects at csu.org.
Customer bill impacts
The total of all proposed base rate increases is estimated to be about $14/month on the sample residential four-service bill in 2025.
Next, the proposals will go before the Colorado Springs City Council on Oct. 22, with a final vote expected on Nov. 12. If approved, changes take effect on Jan. 1, 2025, for base rates and Oct. 1, 2025, for Energy-wise rates.
