Colorado Springs Utilities (CSU) has proposed a gas rate increase that could take effect as early as April 1, pending approval by the City Council. The proposal comes in response to higher-than-expected natural gas consumption during the winter months and rising market costs for natural gas.

Why the Rate Increase?

The winter season brought unusually cold temperatures, leading to increased demand for natural gas. CSU reports that this surge in consumption depleted their storage reserves at a faster rate than anticipated. As spring approaches, the utility company must replenish these reserves, which has created additional demand in the market. Furthermore, natural gas prices are expected to rise in the coming months due to broader market trends, including increased liquefied natural gas exports and lower-than-average U.S. storage levels.

Impact on Residents

If approved, the rate adjustment would result in an average increase of approximately $6.47 to $7 per month for residential customers. While this may seem modest, CSU acknowledges that many households already struggle to manage utility costs. The company has offered tips to help residents mitigate the impact, such as setting thermostats to lower temperatures when away from home and regularly replacing furnace filters to improve efficiency.

Next Steps

The City Council is scheduled to vote on the proposal during its meeting on March 25. If the rate increase is approved, it will be implemented starting April 1.

This adjustment highlights the challenges utilities face in balancing operational costs with affordability for customers. CSU has emphasized its commitment to transparency and support for residents during this transition.

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