Editor's note: The following article and courtesy photo were provided by Colorado Springs Utilities, Fort Carsons utility provider.
COLORADO SPRINGS, Colo. — Colorado Springs Utilities (Springs Utilities) is a municipal utility with about $4.6 billion in assets that have been built to support Colorado Springs over the last 100 years. During the next five years, this will nearly double to include another $3.9 billion.
These investments are needed for the community’s future. This is especially true for Colorado Springs’ energy future since about 30 percent of Springs Utilities’ budget drivers are a result of state-mandated emissions reductions.
Springs Utilities has developed a five-year financial plan to continue to provide customers with safe and reliable utility services while meeting all regulatory requirements. Here is a look at a few of the significant capital budget drivers.
Sustainable Energy Plan: meeting state regulations
Colorado regulations require Springs Utilities to reduce its carbon emissions 80 percent by 2030. To meet this mandate, Springs Utilities must retire its last coal-fired power plant by the end of this decade. To ensure it can continue providing Colorado Springs with reliable electricity, it will add 1,700 megawatts of new natural gas generation, renewable energy and battery storage.
Because these new renewable energy resources will be located outside of city limits, additional investments in transmission lines and substations are also critical.
Water and wastewater: crucial to meet growth
To meet the demands of growth on the city’s east side, Springs Utilities will begin a major project to provide a critical wastewater “backbone.” The current estimated cost of the first phase of this project is $396 million, and when complete, will serve up to 225,000 residents.
Major water investments are needed to meet future community needs. Springs Utilities needs to acquire new water supplies through water sharing programs in the Lower Arkansas River Valley. It also plans to enlarge Montgomery Reservoir in Park County to capture and store enough water to serve an additional 14,000 single-family residences annually.
Funding
These investments are funded through bonds and revenue from customer rates. Rates are based on the cost of providing service; Springs Utilities does not make a profit. To support its five-year plan, Springs Utilities is proposing base-rate increases each year from 2025 to 2029. The estimated increase on a typical residential bill is about $14 a month in 2025 if approved by City Council in November.
To learn more about the five-year plan, visit csu.org.
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