Utility rate increase for winter considered Tuesday by Colorado Springs City Council
COLORADO SPRINGS, Colo. (KRDO) -- After a recent trend of reducing rates for natural gas and electricity, Colorado Springs Utilities is requesting an increase in base rates that would become effective in January, if approved.
Utilities adjusts its base rates annually; the City Council heard the proposal prior to a unanimous vote Tuesday approving a budget ordinance for the utility.
Utility rates often rise during the winter months when the weather is colder and demand for energy increases; the U.S. has experienced record increases in natural gas costs over the past several winters.
Initial indications are the proposed overall increases would be 3% for residential customers, raising the average monthly bill by $8.03; commercial customers would see a 2.4% increase and industrial customers would see a 4.3% increase.
However, a Utilities official said that even with an increase, customers will have a significant overall decrease in their utility bills during the past two years.
"About 6% to 8% lower on the residential side from what they were in 2023, and that goes up to about 12% to 15% lower than what they were on Jan. 1, 2022," said Tristan Gearhart, chief planner and financial officer for the utility.
Still, Utilities and some Council members worry about unforeseen future developments that could abruptly raise utility rates -- similar to the war in Ukraine, the conflict in Israel, or a severely cold winter.
"Everything stays on a pretty even keel, until it doesn't," said Councilman Mike O'Malley. "We have these geopolitical crises spiking out of control. If you don't have control, that's what happens. So, my understanding is that we're taking the right steps."
Councilwoman Nancy Henjum agreed.
"We're very fortunate to have a publicly-owned utility," she said. "Any profits are poured back into the operation and do not go to shareholders. We have a lot to be proud of."
The Council will vote on the rate increase in three weeks.
In other business, the Council voted 7-0 in support of a resolution to oppose statewide Proposition HH, an effort to provide property tax relief to thousands of homeowners facing record-high tax increases next year.
Some Council members said that they find the legislation too confusing and that it would take local control away from cities and counties.
Council members Yolanda Avila and Nancy Henjum recused themselves from voting, saying that they haven't decided whether they support or opppose the measure.
The Council also voted unanimously to allow the city to proceed with eminent domain on three Broadmoor-area property owners who have refused the city's offers to pay them for permanent easements; the easements would allow the city to make repairs on aging drainage infrastructure through the neighborhood.
According to acting public works director Gayle Sturdivant, two of the property owners have not responded and a third is holding out for more money after initially reaching a verbal agreement.
The city first notified the owners and February and presented final offers in August; the city had planned to start repairs next month but the impasse will likely delay the project.
Sturdivant said that th city will make another final offer to the owners before proceeding with eminent domain.
