Colorado Springs Utilities has announced its readiness to serve large electric customers, such as data centers and other high-energy industries, while aiming to protect existing customer costs. The utility’s current rate structure is designed so that major power users cover the full cost of their service, with additional measures in place to support economic development.
The company uses a dedicated rate schedule for industrial customers requiring more than 10 megawatts (MW) of electricity. For context, this level of consumption is thousands of times higher than what a typical home uses. These high loads are often linked to facilities like data centers, which need significant 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 plan, large customers pay directly for any new or upgraded transmission or distribution infrastructure they require—such as substations or line extensions—so these expenses are not passed on to families and businesses. Additionally, these customers must sign at least a 10-year agreement. Their monthly bills are based on their contracted load even if actual usage drops over time, which helps ensure stability and cost recovery.
“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,” said the utility.
Financial security measures require new large-load customers to provide collateral equal to 36 months of minimum monthly bills before service begins. This protects other utility customers if a facility changes operations or exits early.
For companies bringing substantial value—such as providing many high-paying jobs—additional incentives may be available. These incentives aim to attract major employers while maintaining fairness for existing utility users.
“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,” Colorado Springs Utilities stated.
The Large-Load Rate policy aims both to support economic growth in Colorado Springs and ensure that costs remain fairly assigned among all customer groups.
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