Loveland Utility Rates to Increase in 2026, Adding $10.64 to Average Monthly Bill
Loveland utility customers will see their combined monthly bills increase by an average of $10.64 in 2026 as the city implements rate adjustments across electric, water and wastewater services to fund infrastructure upgrades and maintain system reliability.
The proposed rate increases—5.88% for electric service, 4% for water and 4% for wastewater—will take effect January 1 pending Loveland City Council approval. A typical residential customer using 700 kilowatt-hours of electricity, 7,100 gallons of water and 3,200 gallons of wastewater service monthly would pay $218.32 per month in 2026 compared to $207.68 in 2025.
The city routinely evaluates utility costs and adjusts rates annually to reflect the true cost of providing reliable service while maintaining infrastructure that supports electric, water and wastewater systems. The Loveland Utilities Commission reviews rate proposals before forwarding recommendations to City Council for final adoption.
Electric Rates Rise with Infrastructure Costs
Electric rates will increase $7.19 monthly for the average residential customer, raising the typical bill from $120.90 to $128.09. The increase reflects rising construction costs, supply chain delays and inflation affecting the electric utility sector, according to the city.
Loveland receives wholesale power from Platte River Power Authority, which serves Loveland, Fort Collins, Longmont and Estes Park. Platte River has established a target of 100% non-carbon electricity by 2030 as part of regional clean energy commitments.
The 2026 electric rate increase continues a pattern of adjustments that have ranged between 3% and 6% annually over the past decade, according to utility planning documents. Electric rates have increased from approximately $98.60 monthly for typical residential usage in 2015 to the proposed $128.09 in 2026.
Water Treatment Plant Projects Drive Increases
Water rates will rise 4%, adding $1.97 to the average monthly bill. The increase funds capital projects at the Water Treatment Plant and distribution system improvements addressing aging infrastructure.
The city is implementing Advanced Metering Infrastructure for the water division, which involves deploying digital water meters and communications networks that allow real-time usage tracking and remote service management. The Colorado Department of Public Health and Environment requires AMI systems to improve water accountability and support leak tracking.
Implementation began in 2024 with full installation across residential and commercial accounts scheduled for completion by mid-2026.
Loveland also continues inspection and inventory of water service lines to meet federal Lead and Copper Rule requirements. The EPA regulation, revised in 2021 and adopted by Colorado, mandates that utilities document all water service line materials and replace lead lines as needed.
The water service line program, which began in mid-2024, will continue through 2026 to ensure regulatory compliance.
Wastewater System Upgrades Continue
Wastewater rates will increase 4%, raising the typical monthly charge by $1.48 from $36.92 to $38.40. The adjustment supports capital projects at the Wastewater Treatment Plant and collection system improvements.
Rising costs related to treatment plant expansion and transmission main improvements contribute to the rate increase. The expansion projects include increasing plant capacity, upgrading treatment processes for nutrient removal and replacing aging infrastructure.
Colorado Regulation 85 sets nitrogen and phosphorus discharge limits that require wastewater treatment upgrades. The regulation, implemented by the state health department under the Colorado Water Quality Control Act and federal Clean Water Act, obligates municipalities to meet specific effluent discharge standards.
Major sewer line upgrades serving growth regions of Larimer and Weld counties are under active construction through 2027.
Rate-Setting Process Ensures Fair Cost Allocation
The city calculates the true cost of service for each customer group annually to ensure rates accurately reflect resources required to deliver water, power and wastewater services. The methodology prevents cross-subsidization between residential, commercial and industrial customer classes.
Every three years, Loveland collaborates with independent rate consultants to conduct comprehensive cost-of-service studies. The detailed analysis examines how different customer groups use services and compares usage patterns to associated costs.
The last comprehensive study was completed in 2023, with the next full analysis scheduled for 2026.
Loveland Rates Remain Below Regional Averages
Despite the increases, Loveland maintains utility rates among the lowest in the Front Range for typical residential customers. The city's 2026 proposed electric rate of approximately 18.3 cents per kilowatt-hour compares favorably to Fort Collins rates ranging from 18.5 to 19.3 cents per kilowatt-hour.
Water rates also remain competitive. Loveland's proposed rate of $7.30 per 1,000 gallons falls below Fort Collins rates of $7.50 to $8.50 per 1,000 gallons and significantly below Boulder's rates of $10.20 to $12.75 per 1,000 gallons, according to municipal utility rate schedules.
The city offers multiple assistance programs for residents seeking support with utility bills. Financial assistance and residential efficiency programs are available to help customers manage costs through reduced energy usage.
Recent changes to payment processing require utility customers to update payment records with a Dallas-based mailing address effective November 3. The transition to a new vendor affects utility bills, sales tax payments and Pulse services but does not change local customer service operations.
Additional information about rates and assistance programs is available at lovgov.org.