COLORADO SPRINGS — Colorado Springs City Council is set to decide on a public hearing date on proposed rate increases for Colorado Springs Utilities customers that could take effect in 2024.
According to Colorado Springs Utilities, the proposed increases are 8% for electric and 6% for natural gas. The organization's webpage on the issue states, "The increases are needed in 2024 to maintain and rehabilitate aging infrastructure, provide safe and reliable services to existing customers, prepare for future demand, and meet environmental and regulatory requirements."
CSU estimates an impact to the average residential customer of $8 per month, based on usage of 700 kilowatts per month of electrical usage and 60 ccf (hundred cubic feet) of natural gas usage.
If approved by the City Council when voted on later this year, the rate change could take effect as early as January 2024.
Colorado Springs Utilities has not increased the base rate for electric and natural gas since 2018 and 2021, respectively. Rates went up this year for water and wastewater usage which had not changed since 2020.
In addition to the rate changes, Colorado Springs Utilities has proposed the Colorado Clean Heat Plan Charge of about 75 cents per month in order to "recover expenses related to state mandates under Colorado’s Clean Heat Plan."
"The separate charge allows us to provide transparent information about costs related to the Clean Heat Plan. The law requires utilities to adopt programs that encourage customers to reduce emissions generated by natural gas-based appliances and heating systems," according to CSU's site.
Base rates are used to cover the costs of "producing and delivering each service to customers", including all the physical equipment used by utilities.
While the base rate will increase under this proposal, CSU states customer bills would actually go down when you take into consideration fuel rate decreases due to economic circumstances.
Here's the current timeline for discussion and voting on the proposed rate changes, according to CSU.
- Oct. 24, 2023: City Council Budget First Reading & Rate Case Hearing - City Council
- Nov. 14, 2023: Budget Second Reading and Rate Case Decision - City Council
- Jan. 1, 2024: New base rates and budget effective.
Read more about Colorado Springs Utilities 2024 proposed budget
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