Colorado Springs Utilities has announced its readiness to provide electric service to large industrial customers, including data centers and other high-energy users. The utility’s current rate structure is intended to ensure that these customers pay the full cost of meeting their energy needs without increasing costs for existing residents and businesses.
The utility uses a specific rate schedule for any industrial customer that requires more than 10 megawatts (MW) of electricity, which is significantly higher than the consumption of a typical home. This level of demand is commonly seen in industries such as data centers, which need substantial infrastructure and long-term power planning.
“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,” according to Colorado Springs Utilities.
Under this rate, large customers are responsible for paying all costs related to new or upgraded infrastructure, such as substations and line extensions. This ensures that families and smaller businesses do not bear additional expenses due to the presence of high-demand users.
To maintain financial stability and protect against market volatility, large-load customers must sign a minimum 10-year agreement. Their monthly bills are based on contracted load levels even if their usage declines during the contract period.
“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,” states Colorado Springs Utilities.
Additionally, before receiving service, these industrial clients must provide collateral equal to 36 months of minimum monthly bills. This measure is designed to protect other customers if an industrial facility changes operations or leaves before fulfilling its contract.
In cases where incoming companies offer significant economic benefits—such as creating many high-paying jobs—the utility may offer additional incentives while ensuring fairness for existing customers.
Colorado Springs Utilities emphasizes that as a community-owned, not-for-profit organization, it sets rates only at levels required to recover service costs. The goal is for each customer class to contribute fairly toward maintaining reliable electric service across the city.
“This structure allows us to welcome large industries in a way that: Supports economic development. Protects affordability for existing customers. Maintains the reliability and planning stability our community needs and expects,” said Colorado Springs Utilities.
