Colorado Springs Utilities plans to market $180 million in bonds this week to help fund the Southern Delivery System pipeline, the New York Times reported.
That's part of the roughly $800 million project cost, which, when financing costs are added over the project's 40-year life, will cost ratepayers $2.3 billion.
The project will bring water from Pueblo Reservoir and increase the city's supply by a third. Based on rate forecasts, Springs Utilities customers' water rates would double by 2016 to pay for the pipeline, which is being built in part to supply the 23,000-acre Banning Lewis Ranch on the city's east side. Annexed in 1988, development is just starting to begin, slowed considerably by the recession.