How much will SDS cost?

We’re seriously considering two alternatives for SDS – our Proposed Action from Pueblo Dam and the Highway 115 Alternative through Fremont County. Our Proposed action would cost about $1.1 billion to build, the Highway 115 Alternative about $1.2 billion. They are the two least expensive alternatives among the seven considered in the Environmental Impact Statement prepared by the Bureau of Reclamation.

Our Proposed Action is based on more than 10 years of planning and review. It uses water we own and is the most economical, most reliable and an environmentally responsible option for meeting our future water needs. We studied hundreds of possible combinations before choosing the one we’re proposing.

Are there better and less expensive alternatives?

The two alternatives under consideration are the two most economical alternatives of the seven considered in the Environmental Impact Statement prepared by the Bureau of Reclamation. Both of these alternatives are cost-effective, reliable and environmentally responsible.

How will the project be paid for?

Water users in Colorado Springs, Security and Fountain who benefit from SDS will pay for it. Water users in Pueblo West will also help pay for the project if SDS connects to Pueblo Dam and serves that community.

What percentage of the project will be paid by residential, development fees, business customers?

The project cost will be included in future cost of service studies to ensure that all users are treated as fairly as possible and no single group or groups are called on to bear an unreasonable portion of the cost. We estimate the cost distribution to be similar to what it is today. Residential customers in Colorado Springs currently pay 35 percent; nonresidential 39 percent; development fees (tap charges) 26 percent of total water costs. There have been increases to development fees since 2003 associated with future water needs.

How will SDS affect residential water bills?

The average single-family residence currently pays $36.29 per month for water, based on an average use of 8,500 gallons per month per household. According to the Environmental Impact Statement, an average household would pay $57.78 per month in 2015 and $77.71 per month in 2025. Only part of the higher amount is due to SDS. Projected increases to operations and maintenance costs of our existing infrastructure are also factored into the forecasted amounts.

How will SDS impact nonresidential/business water rates?

Commercial and industrial customers would see similar percentage increases to their bills.

Will development fees increase?

Similar to residential rates, development fees, or tap fees as they are referred to in the draft EIS, will increase with or without SDS. To help pay for future water projects, development charges have already increased from $4,695 in 2003 to $9,292 in 2009. For the proposed alternative the estimated fees in 2015 and 2025 would be $11,044 and $17,697 respectively.

How do Colorado Springs water rates compare to other Front Range cities?

Colorado Springs’ water rates fall in the middle, lower than some cities whose water source is located far away and higher than cities with simpler water delivery systems.

Rates in effect February 2009

Colorado Springs must build and maintain an extensive system of reservoirs, pump stations and pipes to deliver water from nearly 200 miles away to our community. Cities on the low end of the above comparison, such as Pueblo and Denver, are generally closer to a major water supply with a river running through their city.

Colorado Springs tap water is a tremendous value for our customers. Our great-tasting tap water costs a tiny fraction of what bottled water costs. Colorado Springs’ residents pay less than half a penny per gallon of water. We expect that with SDS and higher costs to operate our existing system, customers will still pay less than a penny per gallon of water in 2025.

Water is just one of four utility services included on our customers’ bill. Our overall utility rates are lower than most cities in the country.