(COLORADO SPRINGS) — Colorado Springs Utilities (CSU) is proposing a rate decrease to the Colorado Springs City Council in anticipation of lower-than-expected winter natural gas prices.
The proposed rates will be voted on by City Council on Nov. 22 and if approved will go into effect on Dec. 1.
CSU said the proposed rates changes will be a decrease of $29.71 per month on the average residential bill. CSU said when compared to 2021 average residential winter bills will be about $35 lower.
According to CSU, fall rates were based on higher projected natural gas costs, approaching winter however temperatures have been milder than expected across the United States. The higher temperatures have increased natural gas in storage. CSU also mentioned the full recovery of cost associated with the 2021 Winter Storm Uri that occurred in February of 2021 allowed CSU to pass lower market costs to consumers.
“The natural gas market remains volatile. To protect customers from these changes in the market, Springs Utilities buys natural gas at lower rates when demand isn’t as high and uses other long-range tools to lock in a portion of supply at lower prices,” said CSU.
“As a non-profit, community-owned utility, increases and decreases in these fuel costs are passed on directly to customers, usually four times per year. This change is effective one month earlier than scheduled. The next scheduled cost adjustment would be effective April 1.”