City Council directs CSU to remove net metering affecting solar customers from 2026 rate case

COLORADO SPRINGS, Colo. (KOAA) — City Council did not formally vote on whether to approve the rate fee increase, but did give direction to Colorado Springs Utilities to remove a monthly increase for solar users from the 2026 rate case. That vote was five to four. A vote on the complete 2026 rate case will be October 28.

Solar customers were facing a possible $50 monthly increase on their bill, under a CSU proposition that would have a demand charge for net metering customers with a median bill impact of around $25.

With the 2026 rate case no longer including any changes to net metering, net metering customers will remain on their current flat rate structure.

Any future changes, if proposed, would go through the same Utilities Board and City Council approval process

The utility company said the fee is necessary to cover infrastructure costs as more customers generate their own power during peak solar hours, but still rely on the grid during evening peak demand periods.

"We were just blindsided," one solar customer said during a small gathering at Acacia Park to voice concerns about the proposed increase.

Solar customers currently receive credits when they generate more power than they consume, feeding excess energy back into the grid. However, Colorado Springs Utilities says this creates a cost imbalance.

Energy is cheapest during midday when solar generation peaks and customer consumption is typically low.

Many solar customers accumulate credits during these hours, then use them during the most expensive period for utilities to provide power, between 5 and 9 p.m.

"The sun doesn't shine 24 hours a day. Our electric system has to be big enough to support their needs when they are using energy," said Tristan Gearhart, chief finance officer with Colorado Springs Utilities. "We can't cover the demand-related costs."

Solar customers argue the sudden change breaks trust with those who invested in clean energy.

"Please don't penalize citizens who have gone to a great deal of trouble to do the best thing for our communities and energy security, and the transition to clean energy," one customer said.

Another added: "I would say the rapid and sudden change is hard to adapt to, and it's a breach of trust, and we think that that should be repaired."

The utility adds roughly 1,000 solar customers to the grid each year. Around 9,000 customers have already switched to solar energy.

"We're investing in the grid, we're investing in our neighbors. We're investing in energy security, and we are not adding new costs. We're just they're just losing a little bit of revenue," one solar customer said.

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