01 Jun
As our region grows and attracts new businesses, including data centers, many members wonder: Will these large facilities drive up my electric bill? The answer: Data centers do not automatically mean rate increases for CORE members. Our rate design ensures every member pays their fair share based on the actual cost to serve them. Our cost-based rates are designed to keep things fair for all members.
How we manage data center requests
CORE currently serves just a few very small data centers, each less than 5 megawatts of peak load. We expect additional, slightly larger data centers on our system within the next few years and are actively designing the infrastructure to support the power needs of those and all other members.
While CORE’s volume of requests is not as high as other parts of Colorado, we still review each data center request individually. We set clear expectations for interconnection timelines and developer obligations early in the process, including the security and financial commitments needed to support both infrastructure and energy supply. CORE believes data centers must commit to the financial obligations that cover the costs of the new generation resources necessary for their load requirements. This means the cost to serve these large loads is not passed on to existing members.
Data centers sometimes are situated near substations that have limited transmission or distribution capacity, which means grid upgrades are necessary to handle the additional load. In such cases, the data center owner must provide the capital required for these upgrades. Any costs incurred solely for the benefit of the data center will not be recorded in CORE’s books, to ensure these expenses are not passed on to other CORE members through their rates. This approach protects existing members from taking on the data center’s costs.
If the data center leaves after a few years, regional economic growth typically absorbs the excess capacity. CORE also implements minimum financial obligations and ramp schedules in service agreements to ensure cost recovery and mitigate additional risks.
Growth pays its own way
CORE sets rates to cover service costs for all members, excluding extra expenses that benefit only one member. This ensures a fair rate structure.
New businesses — including data centers — pay 100% of construction costs, which are not subsidized through existing members’ rates. Data centers also contribute significantly to the fixed asset component of our utility rates, which helps CORE maintain and improve infrastructure for everyone.
CORE’s rates are made up of three parts:
Service charge
Energy charge
Demand charge
These charges are designed so that each member’s bill matches their actual cost of service. Our rate design team continues to move all rates toward this cost-based goal.
Power procurement and planning
By working with power marketers, CORE can better match energy purchases to when new data centers come online, helping ensure system resources remain available and reliable as new members are added.
Regulatory environment
Colorado’s carbon reduction mandates and regulatory uncertainty present challenges for large data centers. CORE works to balance these requirements with the need to serve new loads, always with the goal of protecting existing members from undue costs.
As CORE continues to grow alongside our communities, we remain committed to protecting existing members while supporting responsible economic development. Through cost‑based rates, clear developer obligations and careful planning, CORE manages new demand thoughtfully and transparently, and with fairness at the center of every decision.