COLORADO SPRINGS, Colo. (KOAA) — Colorado Springs residents and business owners will soon see an increase in their natural gas bills to fund federally mandated safety upgrades, according to Colorado Springs Utilities.
On Tuesday, the Colorado Springs City Council approved an $8.54 monthly bill rider charge for residential customers; for commercial and industrial customers, the charge is $18.00 extra monthly. The money will be used to replace old steel gas lines, according to Springs Utilities.
The new rates will take effect on July 1.
- Learn more about the natural gas bill rider in the video player below:
According to Colorado Springs Utilities manager of pricing and rates Scott Shirola, the new charge will help fund accelerated work for the utility's Distribution Integrity Management Program (DIMP).
DIMP is a federal program required for all natural gas utilities, overseen by the Pipeline and Hazardous Materials Safety Administration.
Colorado Springs Utilities says the program will net roughly $90 million to help it replace around 39 miles of infrastructure each year through 2029.
Click here to learn more about the natural gas bill rider.
The increase comes a couple of months after Colorado Springs Utilities customers saw a slight decrease in their bills. On April 1, the average residential bill dropped by about $7 for natural gas and an estimated $2 for electricity. That added to a savings of just under $10 a month.
- Watch our previous coverage of the decrease in the video player below:
Colorado Springs Utilities said those rates changed because they are tied to the cost of fuel.
"I wish it went down more on electric because we have an AC," said one customer during our interview then. "So in the summer, it really goes up."
Shirola says the new charge is intended to be a "bridge fee" until Colorado Springs Utilities works through the remaining portion of a five-year rate plan that was approved by city council in 2024.
"City council, at that time, approved annual rate increases for the years 2025 through 2029," said Shirola. "This Natural Gas Integrity Federal Compliance Charge is really intended to bridge that gap until 2030, at which time, the cost of this program will be evaluated and potentially rolled into our base rates."
News5 asked why customers have to absorb the cost instead of the utility company.
"Since Colorado Springs Utilities is a municipal utility, we really pass along really only the cost that is required to provide service to utility customers," said Shirola. "There's really no profit margin in our rates or anything of that nature. When there's additional work to be done, as required by the federal agency, we have to pass along that additional cost to our customers to fund that work."
Shirola adds that Colorado Springs Utilities understands that any additional rate increase can be a burden for customers.
"We really would like to urge customers that may be struggling to pay their utility bill to reach out to Colorado Springs Utilities, there’s bill payment options and things of that nature that we can work with them with," said Shirola. "We also encourage them to reach out to [Pikes Peak] United Way and call 211 and they can really be directed to resources in the community that best fit their need for their particular situation.”
News5 is speaking with residents and business owners about how this will impact them. If you would like to speak with us or share how it impacts you, send us an email.
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