COLORADO SPRINGS, Colo. — Colorado Springs Utilities (CSU) will present its proposed 2026 budget to the Utilities Board on Wednesday, outlining a $2.2 billion spending plan — a 23% increase from the 2025 budget.
The proposed hike follows consecutive budget jumps in recent years. The 2025 budget, set at $1.8 billion, was already 21% higher than the 2024 budget of $1.5 billion.
Capital Projects Driving Cost Surge
CSU attributes the sharp increase to ongoing Capital Improvement Projects, expected to add $4 billion in assets by 2030. These projects aim to upgrade infrastructure, improve reliability, and support long-term growth.
No New Base Rate Increase for 2026
Despite the significant budget jump, CSU is not proposing any additional base rate increases for 2026. Officials noted that a five-year rate increase plan — approved by the Utilities Board and Colorado Springs City Council in November 2024 — is already in effect.
The plan includes a 6.5% total increase in non-fuel utility bills through 2029 to fund improvement projects. For the average residential customer, this translates to an estimated $14.87 increase in 2026 monthly bills.
Next Steps & Public Hearings
Although no new base rate hike is proposed, CSU is requesting a 2026 rate case for review. Key upcoming dates include:
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October 14, 2025 → Budget and rate case hearings with City Council
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October 28, 2025 → Final vote on the 2026 budget
If approved, the updated budget will help CSU continue expanding its infrastructure while maintaining stable base rates for customers.
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Katie is a senior who has been on staff for three years. Her favorite type of stories to write is reviews and features. Katie’s favorite ice cream flavor is strawberry.
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