COLORADO SPRINGS, Colorado (KRDO) — City Council members have given the green light to a new rate increase from Colorado Springs Utilities (CSU).

Residential electricity bills will increase by 3.3% and natural gas bills will increase by 5.49%, which equates to an additional cost of approximately $8.71 per month for the average household.

The increases are based on the fuel costs the CSU expects to pay over the next few months as colder weather sets in.

The effects of this fuel price increase will be felt by customers from October 1st.

But starting in January, customers could pay about $25 more per month, a historic amount, if the utility’s base rate proposal is approved in the next two months.

This is in complete contrast to the increase in fuel prices approved by the city administration on Tuesday.

This increase would benefit property tax rates and is intended to finance long-term infrastructure improvements.

The company expects costs to reach $1.8 billion in 2025 alone, 21% more than this year’s budget.

The CSU also says it is facing energy needs of historic proportions and needs to increase its budget by $3.7 billion over the next five years – all to comply with regulations, support community growth and maintain system reliability.

For customers, there would be an annual increase in basic prices of 6.5 percent for electricity and water, 4 percent for natural gas and 9 percent for wastewater between 2025 and 2029.

If the council approves this in November, customers would face another increase: an additional $14 per month starting in January.

However, the increase will be gradual. Forecasts suggest that by 2029, the average household bill will be about $90 higher than it is today.

On October 22, the City Council will hold a public hearing on the proposed base rate, with a final vote on the issue scheduled for November 12.