Sep 23, 2024
(COLORADO SPRINGS) — Colorado Springs Utilities (Springs Utilities) will propose increasing its rates at the upcoming City Council the week of Sept. 23. Springs Utilities will address its proposal to increase electric and gas fuel rates due to the seasonal demand for natural gas. According to Springs Utilities, they will propose the increase at the City Council Work Session on Monday, Sept. 23, and could be approved by the City Council on Tuesday, Sept. 24. If approved, the new rates would be effective on Oct. 1. Individual customer bills would vary depending on the weather, household use, and home efficiency. Springs Utilities estimated the increase to be about $8.71 per month on the average residential bill. Fuel rates fluctuate quarterly, Springs Utilities passes along fuel rate increases or decreases four times a year — typically in January, April, July, and October. As gas prices rise, so do the prices, as a result of an increased demand in colder months. The last increase was in October 2022 and the current increase would still be lower than other utilities along the Front Range. Springs Utilities said rates would be 16% lower and natural gas would be about 20% lower if increases are approved. A few tips Springs Utilities offers that can help customers manage winter heating costs include: Weather strip doors and windows to reduce the amount of air loss from the home. Change furnace filters every 30 days and schedules regular service. During winter, set thermostats no higher than 68 degrees when home and 60 degrees when away or sleeping. In addition to fuel rates, Springs Utilities is also proposing a five-year rate case increase. Base rates are updated once a year, they support the annual budget and fund major projects and system improvements. In addition to funding maintenance to meet regulations. support customer needs and maintain service reliability. This year, Springs Utilities is proposing a five-year rate case, which includes an increase across all four services for 2025-2029. The public hearing on the proposed base rates will be at the City Council meeting on Oct. 22, with a vote on Nov. 12.
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