Upcoming utility rate increase likely felt beyond monthly bill in Colorado Springs
COLORADO SPRINGS, Colo. (KRDO) -- Next week's rate increase by Colorado Springs Utilities likely will result in a double whammy for its customers.
That's because the commercial rate -- for restaurants and small businesses -- also will increase, meaning that much of those costs will be passed on to customers through higher prices for food, drink and other goods and products.
While the temporary rate increase for residential customers will be nearly 11%, the commercial rate will be twice as much (22%); raising the average monthly bill by $28 for residential customers and by $437 for businesses.
The rate increase comes as many businesses are struggling to operate during the COVID-19 pandemic -- with fewer hours, fewer employees and customer counts down as colder weather approaches.
KRDO NewsChannel 13 sat down with Joseph Campana and Travis Blaney; together they own or operate a dozen restaurants in town and are worried about the impact of the rate increase on themselves and their customers.
"We're going to have to raise our food prices," Campana said. "I don't want to charge $25 for a burger -- and that's what is about to happen here. I had to raise all of my prices at two of my restaurants a few weeks ago because of price increases with food."
Blaney, who also heads the local chapter of the Colorado Restaurant Association, said that some restaurants will need help.
"We'll look for alternatives and work with them to be creative and find ways to, if we're going to absorb this cost increase, work to contain other cost increases and maybe reduce them."
Colorado Springs Utilities offers a variety of programs to help businesses, including payment plans, rebates for buying energy-efficient equipment, and a new online program that helps businesses monitor their energy use.
However, a popular CSU program -- a free energy audit -- is booked solid through the end of the year.
Some restaurant customers have mixed feelings about whether the higher utility rates will change their lifestyles.
"The main point for me is I want to support my community," said Serena Nangia. "So I'm just going to continue probably doing the same things I can, if I can. I recently got laid off, so that will definitely make me change my budget."
Ben Hoffer said he won't worry about things he can't control.
"Watch how you spend, but going out to eat is important to me," he said. "I think restaurants are a very important part of our neighborhoods, and so we need to show support."
