Colorado Springs Utilities proposing rate increases, almost $1,000 more annually by 2029

COLORADO SPRINGS, Colo. (KRDO) - Colorado Springs Utilities (CSU) proposed a rate increase that would go into effect on Jan. 1st, 2025. The rate increase, broken down into sewer, water, electric, and natural gas rate increases, would total $14 per month more for the average household, compounded each year.

The rate increases would take effect for the next five years and would pay for over $3 billion of improvement and maintenance projects CSU has deemed necessary to accommodate the growth of the city and meet state requirements.

"If the rate increases didn't go into place ... looking at our pipes and wires, the things that we do to keep customer services as reliable as they are, would be the things that suffer most," the Chief Planning and Finance Officer, Tristan Gearhart, said. "We would be looking at brownouts, blackouts, an interruption in service at a level that we feel like our customers would not find acceptable."

Gearhart also went on to say that if the company did not do the capital improvement projects they needed to, they ran the risk of the state shutting the company down.

The base rate increases would be about 6.5% for electric and water, 4% for natural gas, and 9% for wastewater each year until 2029. According to the proposal document, residential customers would be paying about $325 per month by 2029. Right now, CSU residential customers pay on average about $245 per month for utilities.

"I've spent many hours talking with individual customers," Gearhart said. "We understand that these things have a lot of impact. But at the same time, we want to make sure that the utility services that customers count on that, you know when they go to turn on their lights, charge their devices, have the water that they need, that those essential services that are there"

CSU is also proposing a new time-of-day rate called "Energy Wise," which would mean customers pay different rates for different times of day. If approved, the program would change the rates the company charges for utilities depending on the time they are used. That program, if approved, would go into effect in October of 2025 in a phased approach.

CSU says they charge about 10% less than other utility providers on the front range. They also partner with bill pay assistance programs that can help customers pay their bills.

The rate increase will go to a final vote on Nov. 12th.