(COLORADO SPRINGS) — At a meeting on Tuesday, Nov. 12, City Council voted unanimously to approve Colorado Springs Utilities’ (Springs Utilities) 2025 budget and five-year rate case.

According to Springs Utilities, base rates support the pipes, wires and plants that make it possible to provide reliable utility services.  With historic demand, Springs Utilities said it plans to add $3.9 billion in infrastructure during the next five years to meet regulations, support community growth, and maintain system reliability.  

“The rates are based on the costs of serving customers,” said Springs Utilities. “As a community-owned utility, Springs Utilities does not profit from customer rates. Base rates are typically updated once a year. This year Springs Utilities presented a five-year rate case. ”

The rate case proposed increases of 6.5% for electric and water, 4% for natural gas and 9% for wastewater for each year from 2025 to 2029, which were approved by City Council 8-0 on Tuesday. The increase is estimated to be about $14/month on the sample residential four-service bill in 2025, Springs Utilities said.

The 2025 proposed budget of $1.8 billion is 21% more than the 2024 approved budget. Springs Utilities said capital projects make up nearly 34% of the budget.

Changes take effect Jan. 1, 2025, for base rates and Oct. 1, 2025, for Energy Wise rates.