Colorado Springs council approves increases in natural gas, electric rates
Metro Creative Connection
Colorado Springs Utilities ratepayers will pay more for natural gas and electricity this fall due to anticipated increased costs in market prices as colder weather sets in.
Beginning Oct. 1, the average residential ratepayer can expect to see their four-service utility bill rise on average by $8.71 per month — from about $246 a month currently to around $255 a month, or about a 3.5% total increase, Utilities Pricing and Rates Manager Scott Shirola told the City Council this week.
On Tuesday, the council voted 9-0 to approve the proposed increases to natural gas and electric costs. The council also acts as the city-owned utility’s board of directors.
These are the first increases to natural gas and electric fuel rates since October 2022, Shirola said. Utilities reviews fuel rates on a quarterly basis and the council can adjust them to reflect changes in the market.
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“We have seen a general rise in the natural gas markets that we typically see around this time of year, as we move into the winter heating season. That’s no exception this year,” Shirola told the council during a presentation on Monday, ahead of Tuesday’s vote.
More demand in colder months means higher natural gas prices are expected this winter, which is driving the need to increase fuel rates in Colorado Springs, he said. Previously, Utilities had “significantly reduced” natural gas and electric fuel rates to reflect unusually low market prices this spring and summer, officials said in a news release.
The average residential customer can expect to see their electric charges increase by about $3.22 a month beginning Oct. 1, or an increase of about 3.3%, according to a sample total monthly bill Shirola presented.
Residential customers will see their natural gas costs increase by about $5.49 a month on average, an increase of about 16%.
The exact monthly impact for each ratepayer will fluctuate based on weather, household utility use and home efficiency.
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Even with the rate increase, Utilities ratepayers will still pay about 10% less for services than other ratepayers across the Front Range, according to Shirola.
Colorado Springs Utilities ratepayers could see their bills increase again this fall if the council approves proposed increases to base rates for all four services for the years 2025-2029.
Base rates fund the construction, maintenance and operation of the utilities system.
The City Council will hold a public hearing on the proposed base rate increases Oct. 22 and will vote Nov. 12.
Regulatory requirements, system reliability needs and community growth are driving the increased costs for the next four years, Utilities officials have said.
The base rate increases are part of Utilities’ proposed $1.8 billion budget for 2025.
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Colorado Springs council approves increases in natural gas, electric rates
Colorado Springs Utilities ratepayers will pay more for natural gas and electricity this fall due to anticipated increased costs in market prices as colder weather sets in.
Beginning Oct. 1, the average residential ratepayer can expect to see their four-service utility bill rise on average by $8.71 per month — from about $246 a month currently to around $255 a month, or about a 3.5% total increase, Utilities Pricing and Rates Manager Scott Shirola told the City Council this week.
On Tuesday, the council voted 9-0 to approve the proposed increases to natural gas and electric costs. The council also acts as the city-owned utility’s board of directors.
These are the first increases to natural gas and electric fuel rates since October 2022, Shirola said. Utilities reviews fuel rates on a quarterly basis and the council can adjust them to reflect changes in the market.
“We have seen a general rise in the natural gas markets that we typically see around this time of year, as we move into the winter heating season. That’s no exception this year,” Shirola told the council during a presentation on Monday, ahead of Tuesday’s vote.
More demand in colder months means higher natural gas prices are expected this winter, which is driving the need to increase fuel rates in Colorado Springs, he said. Previously, Utilities had “significantly reduced” natural gas and electric fuel rates to reflect unusually low market prices this spring and summer, officials said in a news release.
The average residential customer can expect to see their electric charges increase by about $3.22 a month beginning Oct. 1, or an increase of about 3.3%, according to a sample total monthly bill Shirola presented.
Residential customers will see their natural gas costs increase by about $5.49 a month on average, an increase of about 16%.
The exact monthly impact for each ratepayer will fluctuate based on weather, household utility use and home efficiency.
Even with the rate increase, Utilities ratepayers will still pay about 10% less for services than other ratepayers across the Front Range, according to Shirola.
Colorado Springs Utilities ratepayers could see their bills increase again this fall if the council approves proposed increases to base rates for all four services for the years 2025-2029.
Base rates fund the construction, maintenance and operation of the utilities system.
The City Council will hold a public hearing on the proposed base rate increases Oct. 22 and will vote Nov. 12.
Regulatory requirements, system reliability needs and community growth are driving the increased costs for the next four years, Utilities officials have said.
The base rate increases are part of Utilities’ proposed $1.8 billion budget for 2025.
