Local
Colorado Springs rate plan would raise typical utility bill about $16 monthly in 2027
A proposed $2 billion Colorado Springs Utilities budget includes rate increases ranging from 4% to 9% next year. City Council is scheduled to consider the budget Nov. 10.
Colorado Springs Utilities’ proposed 2027 budget would raise residential rates for electricity, water, wastewater and natural gas, adding an estimated $16 a month to a typical household bill if the plan is approved.
The Utilities board has passed the $2 billion budget in an initial vote. The proposal calls for 6.5% increases to electric and water base rates, a 9% increase for wastewater and a 4% increase for gas. The new rates would take effect in January 2027 if approved by City Council, which also serves as the utility’s board. Council is set to take up the budget Nov. 10.
The utility says the spending is needed to upgrade aging infrastructure and expand power capacity as demand grows. The proposed increases follow a five-year rate plan introduced in 2024. Under that plan, Utilities estimates the average bill will rise from $213 in 2024 to $294 in 2029.
The investment push is part of a broader trend among regional utilities, which are spending heavily on infrastructure and capacity. Colorado Springs Utilities, like Xcel Energy, has a large-load tariff intended to keep other customers from bearing the cost of serving power-intensive facilities such as AI data centers.
Utilities told board members that residential bills in Colorado Springs are currently about 4% below the Front Range average. Bills for industrial customers with high electricity use are about 21% below comparable bills elsewhere in the region.
The proposed increases would affect household budgets even as the utility says local rates remain below regional averages. The City Council’s Nov. 10 review is the next step before the budget can take effect.