COLORADO SPRINGS, CO — Members of the Colorado Springs City Council approved a utility rate increase for 2024 on Tuesday.
Colorado Springs Utilities says the changes will be to customers' electric and natural gas rates. Customers should expect base rate increases of 8% for electric and 6% for natural gas on their bills. This is the first time since 2018 that the electric rate has increased. Natural gas rates were last changed in 2021, according to the utility company.
The rate changes are in order to maintain the company's aging infrastructure, prepare for future energy demands, and meet environmental and regulatory companies. The company estimates this will appear as about an $8 increase on the typical residential bill.
The rate increases come after Colorado Springs City Council approved one of the biggest rate decreases in years this July. The City Council also approved the Colorado Clean Heat Plan Charge in order to comply with the Colorado Clean Heat Plan mandates.
This new natural gas charge will approximately appear as follows for different customers:
Residential - $0.75 per month
Commercial - $6.20 per month
Industrial - $62 per month
The utility company says this charge is like base rates and will be reviewed annually for prospective changes. CSU says this is not a flat fee and is based on customer use.
It is estimated about $2.7 million will be generated annually from this charge that CSU says will be used to fund energy efficiency programs like customer incentive rebate programs for energy-efficient water heaters, furnaces, etc.
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