Colorado Springs City Council will vote on a proposal that could increase utility bills (again)

COLORADO SPRINGS, Colo. (KRDO)- There could soon be a spike in your Colorado Springs utility bill. Some residents could see a $6.47 increase per month on average, but this increase will only happen if Colorado Springs City Council approves it. 

CSU said there are multiple reasons why they're proposing an increase in rates. One of them is because they expect natural gas prices to go up.     

The last time CSU adjusted their rate was last year, but they say they miscalculated the increase.

"Through the winter, gas prices have actually been higher than what we set that rate for. So we've under-recovered our fuel expense, over the winter so far," said Scott Shirola, CSU Pricing and Rates Manager. "The second driver really is related to the expectation for natural gas prices. You know, over the next three months."

Due to the severe cold weather we had in January and February natural gas prices are expected to go up in the next few months and going into summer. 

"And that colder weather and higher demand for use of natural gas has caused utilities to withdraw natural gas from storage at a higher rate. And now, as we move into the spring and summer, those utilities will need to be injecting natural gas back into storage, creating more demand," said Shirola.

Data shows that many American households struggle to keep up with utility bills, so much so that some keep their homes at unsafe temperatures to try and get by.

Data from the U.S. Energy Information Administration shows that 34 million U.S. households reported having trouble paying their energy bill in 2020.

More recent data from the American Council for an Energy-Efficient Economy (ACEEE) found that about a quarter of low-income households devote at least 15% of their income to energy bills.

The utilities company said they understand how this increase could impact residents, which is why they have tips that could help control your natural gas bill. 

"The main tips to control cost are setting your thermostat as low as you're comfortable, especially if you're away or away from home or sleeping. And then other tips that are in to replace your furnace filters frequently, at least monthly, so that your equipment's running efficiently," said Shirola.

The new rates would be effective April 1-- if approved by the Colorado Springs City Council at their March 25th meeting.