As conversations about data centers and other high-energy industries continue nationwide, we want our community to know:
- We are willing and prepared to serve any large electric customers that want to come to Colorado Springs.
- Our rate structure is designed to ensure high-energy users cover the full cost of serving their power needs, while also supporting economic development.
- Large water-use customers require a water study to ensure we have sufficient water supplies to serve them.
We use a dedicated rate schedule for any industrial customer that requires more than 10 megawatts (MW) of electricity. For comparison, that’s thousands of times more energy than a typical home uses. These kinds of loads are often associated with data centers, which require significant infrastructure, long-term power planning and participation in regional energy markets.
Our Industrial Service – Large-Load Rate is built specifically for this purpose. It creates a clear process and pathway for large customers to follow, including access to power through market purchases, when needed - without shifting costs to the rest of the community.
What makes the Large-Load Rate work?
Large customers pay for the infrastructure they require.
High‑demand users need high‑demand systems. Under this rate, the cost of any new or upgraded transmission or distribution infrastructure - such as substations, line extensions or added capacity - is paid by the large-load customer, not by families and businesses.
Long‑term commitments provide stability.
To protect our community from volatility, these customers must sign a minimum 10-year agreement. Their monthly bill is based on their contracted load, even if their usage drops, ensuring stability and cost recovery.
Access to the energy market, without shifting costs.
Until system resources are available to serve their full electric needs, large‑load customers pay the full cost of power purchased on their behalf through the market. This approach gives them access to power without shifting costs onto our community.
They provide financial security.
Before service begins, the customer provides collateral equal to 36 months of minimum monthly bills, offering strong protection for all other customers if the facility changes operations or leaves early.
Supporting Colorado Springs’ workforce
For customers that bring significant value to the community - such as those providing a large number of high paying jobs - additional incentives may be available. These incentives help attract major employers while maintaining fairness for existing customers.
Why rates matter
Because we are a community-owned, not-for-profit utility, our rates are designed to recover the cost of providing service - nothing more. We work to ensure each customer class pays its fair share to maintain and operate a reliable electric system.
This structure allows us to welcome large industries in a way that:
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Supports economic development.
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Protects affordability for existing customers.
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Maintains the reliability and planning stability our community needs and expects.
Our Large‑Load Rate ensures we are willing and prepared to serve all customers - large and small - by creating a clear process, providing access to power through the market, and ensuring costs are fairly assigned.
This approach supports our economic growth without shifting costs onto families and businesses.
