In our May 23 edition, we published an article by Noel Black titled “Letter to COS council alleges Norwood responsible for wastewater expansion cost – but ratepayers are footing the bill.”
The article reports on a letter received by the Colorado Springs City Council – whose members also serve as the board for Colorado Springs Utilities (CSU) – from attorney and former Colorado State Sen. Bob Gardner on behalf of an anonymous client. The letter alleges that Norwood Development Group, which owns the majority (18,000 acres) of Banning Lewis Ranch on the eastern side of Colorado Springs, was contractually responsible for the cost of the roughly $400 million Phase 1 of the Eastern Wastewater System Expansion (EWSE), and that CSU may have illegally passed the cost on to ratepayers in breach of both city ordinance and the 2018 Banning Lewis Ranch Amended and Restated Annexation Agreement with the City.
The bulk of the article is a fact-check of the statements made in Gardner’s letter and draws upon extensive independent research, including conversations with CSU staff, video recordings of CSU open meetings and records requests. The article explains CSU’s perspectives and how they differ from the viewpoints put forth in the Gardner letter.
On May 23, I got a phone call from Jay Anderson, communications manager for CSU. He said CSU wished to write a response to “clarify” some of the points in the article, though Anderson did not discuss what these points were during our phone call. We discussed deadlines and print times and settled on the June 6 issue for this “clarification,” since CSU would not be able to meet the deadline to get in the May 31 edition.
The letter we received was attributed to the CEO of CSU, Travas Deal. We have printed it in full at the end of this editor’s note. It is not printed as a standalone letter to the editor because the statements contained need their own context and clarification. And, it is newsworthy in its own right that the CEO of a major public utility would send this letter in response to a journalist doing his job.
Deal titled his letter “Setting the record straight on the Eastern Wastewater System Expansion.” He states that the Bulletin’s article “created confusion that I, as Chief Executive Officer of Colorado Springs Utilities, want to address.”
Under the subhead “Correcting misrepresentations,” Deal says the Bulletin’s article “relies on claims from a single party, mischaracterizing a well-planned, necessary project. By focusing on one viewpoint, the article overlooks the broader benefits and careful planning that went into this project.”
We were perplexed by this. Our article did not rely “on claims from a single party” – it examined the allegat ions in Gardner ‘s anonymous-client letter to see if they made any valid points. And the article includes multiple legitimate perspectives and potential legal interpretations around this massive infrastructure project – including CSU’s. Nothing in Deal’s letter shows inaccuracies or misreporting by the Bulletin. In fact, much of what he says in his letter is in the original article. CSU has not asked the Bulletin to run a correction, nor pointed to a statement we made as false.
We invite CSU to correct any factual errors we have made and also to explain the process by which it was decided that ratepayers would foot the bill for the roughly $400 million Phase 1 of the wastewater expansion project. As we reported, historically that falls to the developers and there is no precedent for CSU undertaking a wastewater project of this size or expense – of several small wastewater projects CSU has built at ratepayer expense, none cost more than $500,000.
The Bulletin article, “Letter to COS council alleges Norwood responsible for wastewater expansion cost – but ratepayers are footing the bill,” may be read for free on our website PikesPeakBulletin.org.
Here is the full text of the letter from CSU CEO Travas Deal.
Setting the record straight on the Eastern Wastewater System Expansion
TRAVAS DEAL/CHIEF EXECUTIVE OFFICER OF COLORADO SPRINGS UTILITIES
A recent article in the Pikes Peak Bulletin misrepresented the Eastern Wastewater System Expansion (EWSE), creating confusion that I, as Chief Executive Officer of Colorado Springs Utilities, want to address. Our decisions regarding this project are guided by long-term planning and the best interests of our customers.
A vital project for a growing city
Colorado Springs is growing quickly, especially on the east side. More homes and businesses mean a greater need for wastewater management. Without expanding our infrastructure, our system could reach capacity by 2028, potentially limiting future growth.
Phase I, a $396 million investment launching in 2026, includes 18 miles of conveyance pipeline and two lift stations. Once fully built, it will serve about 225,000 residents, including the Colorado Springs Airport and our Horizon Utility Campus. These upgrades ensure reliable service and support continued economic development.
The most cost-effective, efficient path forward
Rather than building a new wastewater treatment facility – which would be more costly and require extensive approvals – we’re expanding the existing system. This approach is the most practical and cost-effective, making the best use of our current infrastructure and maximizing our water rights while ensuring future reliability.
Correcting misrepresentations
The Pikes Peak Bulletin article relies on claims from a single party, mischaracterizing a well-planned, necessary project. By focusing on one viewpoint, the article overlooks the broader benefits and careful planning that went into this project.
Since 2023, we have engaged the public through community meetings, Utilities Board hearings and City Council discussions. The EWSE has been thoroughly analyzed and openly discussed to ensure it meets our regulations, is compliant with the 2018 Banning Lewis Ranch (BLR) Annexation Agreement with the City of Colorado Springs and serves the city’s long-term needs.
Colorado Springs Utilities follows strict guidelines built into our governing documents to protect essential services and support responsible growth.
This project’s complexity and considerable cost necessitates that we plan, design and construct the project on behalf of the community. Our rules and regulations allow us to construct needed improvements when they provide broad benefits.
Furthermore, the BLR annexation agreement states that if we determine additional water or wastewater system improvements are necessary to serve a property, the owner must cover costs for engineering, materials, installation, upgrades, and infrastructure enhancements. This ensures fair financial contributions from all stakeholders.
Transparent funding and cost recovery
The EWSE is funded through bonds and base-rate revenue. To support necessary system improvements, City Council approved a wastewater base rate increase of 9% annually for five years (about $3 per month for a typical residential bill in 2025). Of that, $1.88 directly funds EWSE. Developers will contribute through cost recovery fees, ensuring they pay their fair share for infrastructure improvements while reducing future cost burdens for existing customers.
This funding approach reduces the need for future rate increases and avoids the more expensive alternative of constructing a new treatment facility. Without this expansion, all customers would face greater financial impacts.
Beyond recovery fees, property owners and developers must cover the cost of the wastewater collection system infrastructure needed to serve their properties or developments.
A legacy of responsible growth
For more than 100 years, Colorado Springs Utilities has helped our city grow by investing in reliable infrastructure. Previous generations invested in the infrastructure that benefits us today. The EWSE continues this legacy, ensuring our wastewater system can support future development while remaining efficient and cost-effective.
For more details, visit csu.org/EWSE.
