Colorado Springs Utilities to propose energy rate decrease

COLORADO SPRINGS, Colo. (KRDO) - Colorado Springs Utilities announced it'll propose an energy rate decrease Wednesday during the June 21 Utilities Board meeting.

Springs Utilities said the natural gas and electric rare decreases are the result of lower demand and greater natural gas supply nationwide.

While individual customer bill impacts vary depending on weather, household use, and home efficiency, the estimated impact would be a total decrease of about $7 per month on the average residential bill.

Compared to summer 2022, residential customers would be paying 15% less for natural gas and 44% less for electricity on a typical monthly bill. That's a savings of about $41 a month compared to 2022.

If approved by the Colorado Springs City Council at the June 27 meeting, the rates would be effective July 1.

Officials said Springs Utilities passes fuel costs, up or down, onto customers four times a year; traditionally in January, April, July, and October.

According to Springs Utilities, this would be the third energy rate decrease approved since November 2022. The most recent rate decrease was in March 2023.

This proposal also includes decreases in the electric and gas capacity charges, which are reviewed annually. The electric capacity charge covers the delivery of natural gas used for electric generation and the delivery of purchased hydropower. The gas capacity charge covers the cost of transporting natural gas through pipelines to the community and the storage of it. Springs Utilities said all proposed decreases are factored into the same residential bill, resulting in the $ 7-a-month decrease.

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