Colorado’s governor, energy leaders & industry respond to demand for lower heating bills from ratepayers

COLORADO SPRINGS, Colo. (KRDO) -- Customers of Colorado Springs Utilities have to be feeling thankful that the utility lowered rates for natural gas and electricity in December.

It's a position that much of the rest of the state is likely envious of right now.

Responding to a public outcry from ratepayers regarding a third straight winter of high utility bills -- largely due to skyrocketing costs of natural gas so far this winter -- two news conferences were held in Denver on Monday afternoon to respond to the situation.

The first gathering occurred at the office of Gov. Jared Polis; he was joined by Will Toor, executive director of the Colorado Energy Office, and Patty Salazar, executive director of the Colorado Department of Regulatory Affairs.

Four ratepayers also were present to share their stories about utility bills that increased by as much as $200 a month between the start of November and the end of December.

"I had to take my son out pf preschool so that I could afford to pay the heating bill," said Simone Rene, a mother of three, from Aurora. "How can you responsibly plan and budget when the bills keep getting higher? And this is happening while inflation has driven up the cost of everything else."

University of Colorado-Boulder student Colin Wong explained that he had to delay buying some textbooks because of a utility bill that was $40 more than usual this winter.

"While that doesn't seem like much, to a student that's the difference in being able to get groceries or Internet," he said. "It's hard to study for exams when we're worried about having our power shut off."

Colorado has a goal of using 100% renewable energy by 2040, but the current options frustrate some ratepayers who believe that they don't provide faster results.

"I search out alternative energy, such as solar panels, and then I find out it takes months to learn if we can even get on the energy grid," said Jill Egbertson, a mother of two, from Arvada. "Then, after solar panel installation it can take at least another 45 days to get permission to operate those solar panels."

Polis announced more than 30 recommendations intended to require state officials, utility companies and energy offices to do more and respond sooner to protect ratepayers from spikes in natural gas costs, and ensure that citizens are aware of assistance programs.

"The high natural gas prices are due to circumstances beyond our control -- such as the war in Ukraine and severe weather elsewhere in the U.S.," he said. "There's a lot more we can do to make ourselves more immune to that in the future and provide relief now, and save people money. And we're going to be aggressive in our approach to lowering costs."

However, the governor and his panel admit that most of the recommendations are designed to provide more long-term relief, to give ratepayers advance protection if high rates return next winter -- such as two federal programs that will receive $140 million in incentives for people who make their homes and appliances more energy efficient.

"While the funding won't be available until the end of the year, we're committed to working with stakeholders to be ready to go as soon as those funds are available, and get them into people's pockets," said Toor.

Another program, he said, would pay $3 worth of energy savings for every dollar invested by owners of 8,000 buildings larger than 50,000 square feet -- which would include many apartment complexes.

"As far as the short term, we can do a better job informing people about the variety of incentives, rebates, tax credits, loans and payment assistance plans," Polis added. "There are loans with low financing to reduce up-front costs for ratepayers. There's also a program that allows you to pay your bill based on your percentage of income. That's something for which many people may not have qualified before, but for which they may be eligible for now because of inflation."

The governor also said that he'll ask state lawmakers to pass legislation promoting the use of geothermal energy.

At a later news conference sponsored by the American Petroleum Institute, speakers included a labor union, utility companies, members of the natural gas and oil industry, and nonprofit groups.

Robert Kenney, Colorado operating president of XCEL Energy, disputed the public perception that utility companies are raking in huge profits from higher heating bills.

"So, we do take every effort to make sure we're providing the least cost to our customers because it's the right thing to do, and because it's in the best interests of our customers and our company, as well," he said. "So, we do buy the cheapest gas."

Colorado Springs Utilities issued the following response to the Denver news conferences:

"We also take steps to protect our customers from the swings in the natural gas market through gas contracting, financial hedging and gas storage. We continue to educate our customers about the rebates and incentives available, provide tips on energy efficiency and offer payment assistance. Locally, we have Project COPE, which is available to our customers year-round regardless of income, for those who need assistance with their utility bill. More customer assistance options are available here:" https://www.csu.org/Pages/CustomerAssistance.aspx.