Colorado Springs residents are grappling with significantly higher utility bills and a new pricing structure designed to fundamentally change how they consume electricity. Approved by the City Council, acting as the Utilities Board, in late 2024, the changes are part of a five-year rate case for Colorado Springs Utilities (CSU), promising substantial investments in infrastructure but demanding considerable adjustments from ratepayers.

The analysis for these impacts comes directly from Colorado Springs Utilities’ official rate case filings, public presentations to the City Council, and subsequent reporting by local media outlets such as KOAA News5 and the Colorado Springs Gazette, synthesizing the projected increases and the mechanics of the new rate structures.

The Bottom Line: Bills Projected to Jump Nearly 30% by 2029

The most direct and unavoidable impact for the average Colorado Springs household is a steep increase in their overall utility expenditures. By the end of the five-year plan in 2029, the average residential customer is projected to see their combined utility bill for electric, natural gas, water, and wastewater rise by approximately $79.79, representing a staggering 28.9% increase from pre-2025 rates.

The initial phase of these increases, which began in 2025, saw an average household’s monthly bill jump by roughly $14 across all four services. Breaking down the annual increases:

• Electric rates are slated to climb between 6.4% and 6.6% each year.
• Wastewater rates will see the most significant percentage increase, rising around 9.0% to 9.2% annually.

CSU defends these substantial hikes as essential for maintaining and upgrading the city’s critical infrastructure. The utility outlines a need for approximately $3.9 billion in investments over the next five years to ensure reliability of services, meet stringent state-mandated environmental regulations (including the retirement of its final coal-fired generating unit), and expand capacity to keep pace with Colorado Springs’ relentless population growth.

The Behavioral Shift: Navigating “Energy Wise” Time-of-Day Rates

Beyond the overall cost increase, CSU’s new “Energy Wise” electric rate structure introduces a significant behavioral challenge. This system dramatically alters the cost of electricity based on the time of day it’s consumed.

The critical window for residents is the “on-peak” period: weekdays from 5 p.m. to 9 p.m. During these four hours, electricity rates are substantially higher than at any other time. Conversely, “off-peak” rates—covering all other hours, including weekends and holidays—are notably cheaper than the previous flat-rate structure.

The goal, according to CSU, is to incentivize customers to shift high-energy usage away from these peak demand hours, thereby reducing strain on the electrical grid and delaying the need for costly new generation infrastructure.

However, for many working families, this shift presents a direct conflict with their daily routines. The 5 p.m. to 9 p.m. window is precisely when most return home from work, prepare dinner, and engage in typical household activities like doing laundry. To mitigate higher bills, residents are now being encouraged to:

• Schedule Appliance Use: Run dishwashers, washing machines, and dryers late at night (after 9 p.m.), early in the morning, or exclusively on weekends and holidays. Many modern appliances offer delay-start functions to facilitate this.
• Pre-Condition Homes: Adjust thermostats to pre-cool their homes during cheaper mid-day off-peak hours in summer, then set the air conditioning to a higher temperature during the expensive on-peak window. The same strategy applies to heating in winter.
• Optimize EV Charging: Electric vehicle owners are strongly advised to schedule charging sessions to occur overnight, taking full advantage of the lowest off-peak rates.

While CSU suggests that some customers might see slight decreases if they make no changes, the primary benefit and incentive are clearly aimed at those willing and able to actively manage their energy consumption habits.

A Win for Solar: Proposed Demand Charge Halted After Public Outcry

In a significant development for local renewable energy advocates, the City Council voted to remove a controversial “Demand Charge” that was proposed for residential solar (net-metering) customers.

CSU had argued that solar customers were effectively “cost-shifting” approximately $600 per year to non-solar ratepayers by relying on the grid during peak evening hours when their solar panels were not generating power. The proposed demand charge would have significantly increased bills for solar homeowners, threatening the financial viability of their investments.

However, a robust campaign by solar advocates and individual homeowners, who argued the charge amounted to a “bait-and-switch” after they had been encouraged to adopt solar, successfully swayed the City Council. By a 5-4 vote, the council decided to table the proposed solar demand charge, providing a temporary reprieve for these customers. While the issue is expected to be revisited in future rate cases, it marks a notable victory for consumer advocacy against immediate punitive measures for green energy users.

Looking Ahead

As Colorado Springs continues to grow and adapt to evolving energy demands and environmental mandates, the current utility rate changes represent a profound shift. Residents are now tasked not just with absorbing higher costs, but also with fundamentally rethinking how and when they use energy, ushering in a new era of utility management for the Pikes Peak region.