From The Colorado Springs Gazette (Monica Mendoza):
Capital projects dominate the 2014 utilities budget with more than $391 million planned for construction, including $229 million for two massive projects, the Southern Delivery System and bringing the coal-fired Martin Drake and Ray Nixon power plants up to federal Environmental Protection Agency standards.
To the residents, whose utility bills contribute 78 percent of the total utilities operating budget, it means rate hikes to pay for those capital projects. A typical residential customer can expect a $9.37 monthly increase in their utility bills next year, which includes $5.99 for a water rate increase that was approved last year and kicks in Jan. 1. The combined rate increases will bring in an additional $31 million.
Colorado Springs Utilities Chief Planning and Finance Officer Bill Cherrier presented the proposed 2014 utilities budget to the City Council, which doubles as the utilities board of directors…
Utilities is nearing the finish line with one of its largest projects – SDS, a 53-mile water pipeline from Pueblo Reservoir to Colorado Springs. It’s a $1 billion project that started four years ago and amounted to four straight years of 10- and 12-percent water rate increases. In 2014, utilities will spend $178 million on SDS and expects to complete the project in 2016, said Gary Bostrom, chief of water services.
“This is the last significant water rate increase we anticipate for the SDS project,” Bostrom said.