Proposed 2027 budget is focused on reliable service and long-term customer value

The 2027 budget was proposed to the Utilities Board on Oct. 21 with investments focused on what customers depend on every day: safe, reliable electric, natural gas, water and wastewater service. The plan also prepares our utility systems for future growth while balancing the impact of those investments on customer bills.

These investments are intended to deliver three primary benefits for customers:

1. Reliable service: Replacing and strengthening infrastructure before aging equipment affects service.
2. A utility system ready for the future: Adding capacity so systems can continue serving customers as the city grows.
3. Safe, responsible service: Meeting environmental, safety and regulatory requirements.

Before 2025, our annual capital investment averaged between $150 to $250 million per year. Between 2027 and 2029, annual capital investments are expected to range from approximately $800 million to $1 billion. This period of higher investment is focused on replacing aging infrastructure, maintaining dependable service, meeting regulatory requirements and adding capacity where it is needed.

2027 budget reflects changing capital investments needs

The 2027 proposed budget is currently estimated at $2 billion – a 10% decrease compared to the 2026 budget. This decrease reflects high levels of capital spending in 2026, with additional major investments expected to continue in future years.

Capital projects account for about 40% of the proposed 2027 budget. Notable projects include:

1. Reliable electricity when demand is highest: The Williams Creek Generating Station ($78 million) will add 400 megawatts of electric generation capacity to help meet growing electric needs and maintain reliable electric service during periods of high demand. The Williams Creek site is located southeast of Fountain in unincorporated El Paso County.
2. Fast and secure connection of utility systems: We are building an extensive fiber network ($73 million) that will improve connectivity and will help operators monitor system performance, identify issues more quickly and respond more efficiently to service disruptions. Once complete, Colorado Springs will be one of the best-connected cities in the country.
3. More reliable, cost-effective wastewater service: The Northern Monument Creek Interceptor ($40 million) project will consolidate separate wastewater systems into a centralized pipeline, improving operational efficiency while reducing long-term costs. Customers will benefit from a more reliable system that supports environmental stewardship.
4. Protecting long-term water reliability: The Penrose Water Supply ($32 million) project will replace a 109-year-old reservoir with two modern tanks capable of storing 17.6 million gallons of water. This project will improve public safety, reduce maintenance costs, prevent water loss and ensure reliable water service for years to come. And the Wolf Pressure Zone Interconnection ($30 million) will connect two independent water pressures zones with about four miles of water main, this project will increase the reliability of the water system.

What customers can expect

We recognize that increases in utility bills affect household and business budgets. The 2027 budget is designed to make the investments needed for safe, reliable service while carefully managing the amount customers are asked to pay.

The 2027 budget is funded by their five-year rate case approved by City Council in late 2024. It’s designed to fund major investments across all four of their services.

Beginning Jan. 1, 2027, the average four-service residential bill will increase by about $16 per month, or 6.6%, bringing it to approximately $258. These dollars support the utility systems customers use every day, including project intended to reduce service risks, replace aging infrastructure and meet the needs of a growing community.

We offer a number of bill-assistance resources for those in need. Visit csu.org for more information.

Next steps

The 2027 budget proposal will be advanced to City Council for final approval. City Council is expected to vote on the budget in November.