Colorado Springs Utilities proposes natural gas rate increase starting April 1

Colorado Springs Utilities is proposing an increase to the city’s natural gas rates beginning April 1 to keep up with rising prices nationwide.

The proposed increase raise the gas cost by $6.47 per month for the average Colorado Springs resident. The average monthly utilities bill would increase from $268.57 to $275.04, or a 2.4% change for residential customers, according to the materials prepared for the Utilities Board this week.

Utilities pricing and rates manager Scott Shirola said the increase would be needed to keep up with the national market for natural gas. Shirola said gas prices have been higher than previously projected because of an increased demand for gas exports from other countries and other utilities in the United States paying to resupply gas reserves after a cold winter.

“We establish our rates based on a forecast of where we expect the prices to be and then reconcile that with what the prices actually end up being,” Shirola said.

The new rates were proposed to the Utilities Board during a committee presentation on Monday and moved ahead during the board meeting Wednesday. The Colorado Springs City Council will vote on the proposed increase on March 25.

Utilities considers cost adjustments to electric and gas rates every quarter to keep the collection balance within the range recommended by the Utilities Board policy. Shirola said the increase would avoid having the amount collected be more than $5 million below the utility’s cost to supply natural gas.

Colorado Springs Utilities had just instituted a rate adjustment in October, which affected both natural gas and electric costs. The previous adjustment increased the average utility bill by $8.71 per month.

The exact cost of the increase will depend on the natural gas usage and efficiency of homes. Colorado Springs Utilities offers payment assistance for struggling customers through Project COPE and the federal Low-Income Energy Assistance Program.