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About us Our budget Five-year rate case: 2025 - 2029

Five-year rate case: 2025 - 2029

As a municipally owned utility, we do not make a profit on customer rates. Unlike investor-owned utilities who design rates to pay shareholder dividends, we set rates to cover only the cost to serve our customers, ultimately providing the lowest rates possible. 

The annual budget and rate case is presented to the Utilities Board and must be approved by City Council each year.

We typically propose a one-year budget and rate case. Base rates pay for infrastructure projects – building, maintaining and upgrading the pipes and wires in our large system.  

Base rates changes are presented each year to support the budget. This year, because of the major capital needs over the next five years, we are proposing a five-year rate case. The rate case includes increases across all four services for 2025-2029. 

The proposed base rate increases are: 6.5% electric, 4% natural gas, 6.5% water, 9% wastewater. 

Revenue from the base rates support the annual budget. The 2025 proposed budget is currently estimated at $1.8 billion – a 21% increase over the 2024 approved budget.

Customer bill impacts 

Next year, the total impact is estimated to be $14/month on a typical four-service residential bill, $82.72/month on a typical commercial bill and $1,728 on a typical industrial customer bill.

These examples are based on the following:

  • Residential: 30 days of 700 kilowatts/hr of electric, 60 ccf (hundred cubic feet) of natural gas, 1,100 cf of water, 700 cf of wastewater for residential customers.
  • Commercial: 30 days of 6,000 kilowatt/hr of electric, 1,240 ccf of natural gas, 3,000 cf of water, 3,000 cf of wastewater.
  • Industrial: 30 days of 400,000 kilowatt/hr of electric and 1,000 kilowatt for electric, 12,400 ccf of natural gas, 50,000 cf for water, 50,000 for wastewater.

Customer assistance and programs 

We understand these increases have a financial impact on our customers. We will continue to work on customer assistance programs, rebates and efficiency programs aimed at helping customers conserve and save on their bills.  

For example, we are working to develop rate options to help our customers manage electric bills. These options include an Energy-wise time-of-day rate that includes lower rates for using electricity during certain times of day, known as off-peak times.

Lists of major capital projects

Expand the sections below for information and projected five-year price totals for projects across our four services.

Sustainable Energy Plan (generation): 1,700 MW of new natural gas and renewable generation plus battery storage to support carbon-reducing regulations. | $646 million

Fiber network: installation of a city-wide fiber network to enhance operations. | $226 million

Sustainable Energy Plan (transmission): connects 1,700 MW of new generation and battery storage to support carbon carbon-reducing regulations and meet increased demands. | $200 million

Peak Innovation Park: 600 MW of increased electric demand. | $175 million

Kelker Substation expansion: nearly doubles the size of the substation to meet increasing energy demands and improve system reliability. | $77 million

Midway to Kelker transmission line: upgrade existing line and equipment to increase import capability into system.. | $63 million

Sustainable Energy Plan (substation): connects 1,700 MW of new generation and battery storage to support carbon carbon-reducing regulations and meet increased demands. | $60 million

Substations for future capacity: new facilities to meet increased demands. | $31 million

Underground distribution lines: install underground distribution to new residential customers. | $28 million

Central Bluffs Substation: new facility to support increasing electric demands. | $24 million

This list provides projections as of July 2024 and is not all-inclusive. It highlights the largest capital projects in order of projected cost over the next five years. Projections are subject to change. 

We will need more water supplies to meet future needs. The 2025-2029 total for water capital expenses is estimated to be $662 million. That total incudes the following major investments, as well as upgrades to our water treatment plants, pump stations, and repairs or replacement of water valves and pipelines throughout our system.

  • Continental-Hoosier System Project: Montgomery Dam expansion | $172 million

  • Upgrades to aging water infrastructure: in 2025, this includes 50 miles of pipeline upgrades. | $72 million

  • Water acquisition: includes developing new water sharing projects with agriculture to acquire sources of supply. | $63 million

  • Tollefson/Mesa water treatment program upgrades phases 2 and 3: new filtration, ozone, sodium hypochlorite and total organic removal facilities. | $35 million

  • Public improvement projects: Colorado Springs Utilities’ share of water relocations and improvements as result of PPRTA, City, County and CDOT public improvement projects. | $29 million

  • Rosemont pipeline replacement: multi-year project to replace 14 miles of pipeline. | $26 million

  • Austin Bluffs pump station and transmission: design and construction of pump station and transmission mains. | $24 million

  • Pressure Zone Interconnection, North Segment phase 1 of 2: 24” and 16” pipeline from Old Ranch Road and Powers to Highway 83 Pump Station. | $21 million

  • Specialty valves rehabilitation and replacement program: replacement of valves in the water system to ensure safe and reliable water service. | $21 million

This list provides projections as of July 2024 and is not all-inclusive. It highlights the largest capital projects in order of projected cost over the next five years. Projections are subject to change. 

The majority of natural gas projects over the next five years are tied to growth (44%). Investments in additional natural gas pipeline capacity are necessary, as existing pipelines are at or near capacity due to regional and national demand. 

Examples of major projects include gas propane air plant expansion and pipeline improvements to safely deliver natural gas through our system and meet increased demands 

Additional budget drivers include the inflationary increases in labor, benefits, and system maintenance. The total natural gas proposed revenue from rates in 2025 is $92 million, about $3.6 million higher than revenue under current rates.

  • Downtown and military gas supply resiliency project: improve gas supply reliability to the south plant natural gas units to operate as needed year-round, increase resiliency to Ft. Carson and supply gas to proposed Horizon 350 megawatt gas-fueled electric generation plant. | $59 million

  • Gas system renewals: replacement of gas mains with modern coated steel piping.| $28 million
  • New construction billable: install new gas mains and service stubs to residential and commercial areas not currently serviced. | $19 million

  • Gas coated steel renewals: program to replace high risk segments of coated steel pipe. | $19 million

  • Gas service vehicles and equipment: replacement and purchase of vehicles and equipment for gas fleet. | $11 million

  • Gas unplanned maintenance: complete emergent gas distribution maintenance projects due to leaks, excavation damages and system failures. | $11 million

  • Gas meters – base requirements: purchase of gas meters, modules, temperature and pressure instruments, parts, etc. to connect new residential, commercial and industrial customers to our system. | $9 million

  • New construction non-billable: installation of gas main extensions to new customers which requires the oversizing of the mainline for future developments. | $7 million

  • Gas vintage plastic renewals: program to replace high risk vintage pipe segments, fittings and valves. | $5 million

  • Gas distribution system improvements: complete the installation of new gas main infrastructure to the existing distribution system. | $5 million

This list provides projections as of July 2024 and is not all-inclusive. It highlights the largest capital projects in order of projected cost over the next five years. Projections are subject to change. 

The majority of wastewater projects over the next five years are tied to growth (54%).

Eastern wastewater system expansion (EWSE) project: crosstown interceptor: gravity wastewater pipeline that will convey flow from northeast and eastern regions of Colorado Springs to the Las Vegas Wastewater Treatment plant. | $147 million

Eastern wastewater system expansion project: new lift stations and force mains phase 1. | $141 million

EWSE project - Milton Proby interceptor: this pipeline will convey future wastewater flow to the Las Vegas Water Treatment plant. | $69 million

North Monument Creek Interceptor: Installation of 8.5 miles of 30” pipe and infrastructure that will accept wastewater flows from two sanitation districts north of Colorado Springs. | $40 million

Sanitary Sewer Creek Crossing rehabilitation/replacement program: evaluates, protects and repairs sanitary sewer pipelines that cross creeks and drainages in our service area. | $18 million

J.D. Phillips Wastewater Treatment Plant: facility upgrades. | $17 million

Local collectors evaluation and rehab program: multi-year program to inspect and repair sanitary sewer pipeline. In 2025, 30,000 feet of pipe will be repaired. | $15 million

Las Vegas Wastewater Treatment Plant: infrastructure rehab/replacement project. | $15 million

 

This list provides projections as of July 2024 and is not all-inclusive. It highlights the largest capital projects in order of projected cost over the next five years. Projections are subject to change. 

Colorado Springs Utilities 

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