Colorado Springs City Council to vote on utility rate increases

COLORADO SPRINGS, Colo. (KRDO) - On Tuesday, the Colorado Springs City Council will discuss a rate increase requested by Colorado Springs Utilities.

The organization is proposing a base rate increase of 6.5% for electric and water, 4% for natural gas, and 9% for wastewater for each year from 2025 to 2029.

"As a community-owned utility, Springs Utilities does not profit from customer rates," CSU officials said in a release.

Colorado Springs Utilities says the 2025 proposed budget is 21% more than the 2024 budget. It claims the utility is "facing historic demands and plans to add $3.9 billion in infrastructure during the next five years."

CSU officials say the proposed rate increases will equate to roughly a $14 /month increase for a sample resident for the year 2025.

However, under the proposal, the rates will continue to increase each year until 2029, resulting in an annual increase of $960 for the average family compared to 2024 rates.

Farther south, the Mayor of Pueblo Heather and President of City Council Mark Aliff credit public pressure for a reduction in a rate request from investor-owneed utility Black Hills Energy.

The new request, announced Monday, is 32% less than the original request.

Graham called the original request "outrageous".

Aliff added that rates should be going down, not up.

“Anything less than a reduction in our rates from the current rates being paid, is unacceptable,” he said, "They claim these reductions mean that their residential rates are no longer the highest in the state, yet they still admit that they are slightly higher than the national average. Puebloans deserve better.  If they refuse to reduce rates, then they should step aside and allow the PUC to supervise a sale of Black Hills to another utility that will charge us less."

Any rate increase by Black Hills Energy must first be approved by the Public Utilities Commission.

If approved, the new rates in Pueblo would go into effect on March 22, 2025.