A massive six-year project will expand Colorado Springs Utilities’ eastern wastewater system, helping support continued growth on the city’s east side, officials say.

Crews will construct about 18 miles of large new wastewater pipe, between 24 and 48 inches in diameter, and two new lift stations that will move waste from eastern Colorado Springs to the wastewater treatment facility on East Las Vegas Street near southeast Colorado Springs, General Manager Tara McGowan told the Utilities Board of Directors earlier this month . 

“We’re looking to grow the eastern portion of the city, and it’s really timely that this project get completed so that our city can continue to grow in a meaningful way,” McGowan said.

Plans for new electric substation in Colorado Springs move ahead despite concerns

Officials expect the project to be completed in 2030. When it is completed, the expanded eastern wastewater system will be able to handle up to 17.5 million gallons of wastewater a day and serve up to about 225,000 people in eastern Colorado Springs, according to updated figures from Colorado Springs Utilities.

The “highly complex” project is estimated to cost $396 million and will impact more than 127 acres of land and 50 private parcels, McGowan said.

Tallest buildings at Drake Power Plant site demolished

The project will move waste in two ways. Waste will be taken from the area near the northern and central sectors of Banning Lewis Ranch, then conveyed west across a northern wastewater line called the Crosstown Interceptor to the Las Vegas Water Treatment Plant, where it will be treated.

Waste will also be taken from the area near the southern end of Banning Lewis Ranch to two lift stations, which help move wastewater from lower to higher elevations. From there, the wastewater will move through a southern wastewater line called the Milton Proby Interceptor, where it’s conveyed to the Sand Creek lift station. From the Sand Creek lift station, the waste is pumped up to the Las Vegas treatment facility. 

Utilities is preparing to start designing the project and will solicit for a design contract this year, McGowan said. Construction is estimated to begin in 2028 through 2030, but Utilities is considering accelerating the timeline of the project when feasible to complete it as soon as possible, she said.

To recover costs, the agency plans to increase wastewater service rates for the period of 2025-2029 to support its annual budget, including the eastern wastewater system expansion. Utilities is also using mechanisms that allow it to partner with developers to pay for significant infrastructure. 

Typically, ratepayers pay for wastewater treatment while developers pay for pipes and conveyance mechanisms, Utilities spokeswoman Danielle Nieves said in an email.

Colorado Springs Utilities looks to operate, maintain Fort Carson’s water distribution systems

City council expected to vote Tuesday on massive annexation request

In this project, Utilities acts as the “developer,” covering most of the upfront costs to serve eastern Colorado Springs through base rates, Nieves said. The utility recovers those costs later from future users, through charges paid by homebuilders of future homes that are ultimately passed on to the homebuyer, she said.

Updated project estimates show the utility will need to recover between $750 to $4,000 per every “single-family equivalent” — or the total amount of people estimated to be living in the area, divided by 2.1, the average number of people who typically live in a single-family home. After five years, the project will increase the typical customer’s monthly bill by about $12, according to the updated financial projections.

So far, Utilities has recovered $5.9 million of project costs from developers, McGowan said.