Colorado Springs approves price increase for gas and electricity | Local/district politics
Colorado Springs Utilities customers will pay more for natural gas and electricity this fall as market prices are expected to rise as colder weather approaches.
Starting Oct. 1, the average residential consumer can expect an average increase of $8.71 per month on their four-utility electric bill – from about $246 currently to about $255 per month, for a total increase of about 3.5 percent, Scott Shirola, utility rates and fees manager, told the city council this week.
On Tuesday, the council voted 9-0 to approve the proposed natural gas and electricity rate increases. The council also serves as the oversight body for the city’s utility company.
These are the first increases in natural gas and electricity prices since October 2022, Shirola said. Utilities review fuel prices quarterly and the council can adjust them to reflect changes in the market.
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“We have seen a general increase in natural gas markets that we normally see around this time of year as we approach the winter heating season. This year is no exception,” Shirola told the council during a presentation Monday ahead of Tuesday’s vote.
Higher natural gas prices are expected this winter because of higher demand in the colder months, necessitating an increase in fuel prices in Colorado Springs, he said. Previously, utilities had “significantly reduced” natural gas and electricity prices to reflect unusually low market prices this spring and summer, a news release said.
The average residential customer can expect an increase in their electricity bills of about $3.22 per month, or about 3.3 percent, starting October 1, according to a sample bill for the entire month provided by Shirola.
For residential customers, natural gas costs will rise by an average of about $5.49 per month, an increase of about 16 percent.
The exact monthly impact for each ratepayer varies depending on the weather, household electricity consumption and home energy efficiency.
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Even with the rate increase, consumers across the Front Range will still pay about 10% less for their services than other consumers, Shirola said.
Colorado Springs Utilities customers’ electricity bills could rise again this fall if the City Council approves proposed base rate increases for all four services for 2025-2029.
The basic fees finance the construction, maintenance and operation of the supply system.
The City Council will hold a public hearing on the proposed base rate increases on October 22 and vote on them on November 12.
According to utility companies, regulatory requirements, system reliability requirements and community growth are responsible for cost increases over the next four years.
The base rate increases are part of the utilities’ proposed $1.8 billion budget for 2025.
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