Colorado Springs Utilities rates could see major increase by 2030: 11 News is first to dive into the proposal

COLORADO SPRINGS, Colo. (KKTV) - You could be paying about 45% more for gas, water, electricity, and wastewater altogether five years from now if Colorado Springs Utilities gets it’s proposal approved by local leaders.

11 Investigates received a tip about a five-year plan to incrementally increase rates year over year from 2025 to 2029. 11 News Reporter Melissa Henry spoke one-on-one with CSU Chief Planning and Finance Officer, Tristan Gearhart, who says the plan has been in the works for months.

“It’s not the first time we have gone for multiple years of rate increases at one time, but it is the first time that we’ve done it for all four of our services, so it just kind of highlights what a critical time it is for each of those for services right now,” Gearhart said.

Gearhart says the plan is not a done deal. He says numbers could still change, but CSU would like to finalize the plan by September when they expect audits.

Right now, the proposal suggests increasing rates at the figures listed below. Gearhart says these numbers include industry projections for fuel rate changes, which CSU typically incorporates into rate changes seasonally.

2025 rate increase: 9.6%

2026 rate inrcease: 6.8%

2027 rate increase: 7.4%

2028 rate increase: 12.4%

2029 rate increase: 4.7%

CSU says the current customer average monthly bill is $245.22. By 2029 and with the above projections, the average monthly bill would be $362.81 according to CSU.

Gearhart says the reason 2028 has a substantially higher proposed increase is because CSU needs to meet goals legally required by Colorado to incorporate more clean energy sources by 2030.

“Colorado has been fairly aggressive in the timeframe in which they have put out those goals ... No later than December 31, 2029, we need to close down the Nixon coal plant. That is our commitment to the state right now ... So in advance of that, we want to make sure we’ve brought on these renewables and we have them integrated in a way that we can count on them.”

Gearhart also says community growth is driving the need for capital projects.

“Probably the most notable is Banning Lewis Ranch ... We want to make sure we have systems that are in place. Development near the airport is also part of that development area that’s out there,” Gearhart said, referring to growth on the east side of city limits.

August is when city council is expected to have it’s first reading on the proposed rate hikes. November is when CSU is planning on a second reading at council.