COLORADO SPRINGS, Colo (KRDO) – The Colorado Springs City Council on Tuesday approved the request for a tariff increase in Colorado Springs to pay for a huge increase in costs during one winter storm event in late February.
The council unanimously approved a $ 21.99 tariff increase for the next 14 months, which takes effect on March 11.
The average cost per resident of Colorado Springs is approximately $ 308 during the 14 months. This is an even greater increase for commercial and industrial customers.
This comes after we reported that CSU looked at the end of February how it would pay for a major shift in natural gas costs. When the winter storm hit, many natural gas lines froze and limited supplies, which increased wholesale costs. The utility company says because it is a non-profit organization, it bears the cost to customers whether they rise or fall.
During a normal period, natural gas would be purchased at about $ 2.50 per Dekatherm, but according to CSU, it rose to nearly $ 200 per Dekatherm.
The council excluded option 1, which would require customers to pay more over a shorter period, and initially discussed option 3 in which customers would pay less over a longer period.
“I just read an article this week about house prices reaching record highs again,” said councilor Don Knight. “If we’re serious about helping people get into homes, it’s one area where we can really make a difference and have a little bit of discretionary spending, as far as it’s going to spread.”
“This is not what the people in my district need, with the pandemic and people who are unemployed or working less,” said councilor Yolanda Avila. “They are struggling as it is, and this rate hike will only make matters worse for them.”
Option 3, however, failed by 5-4 votes and the council eventually unanimously accepted the remaining option.
“What Utilities offered today, which is the presentation of Option 2, is probably the best balance for our community and for our Utilities that manage it really fiscally and responsibly,” said Councilman Jill Gaebler.
The council also debated whether a similar situation could happen again in the future, and some members said CSU should be prepared for the possibility, while others believe the situation is only a rare occurrence.
In two weeks, the council and CSU will meet again to decide on an increase in electricity tariffs that is also related to the cold period in February.
“But this one will not be as much as natural gas,” said Uramities CEO Aram Benyamin. “For residential customers, that’s likely to be less than $ 10 a month.”
On the same day that the rate hike was approved, Colorado Attorney General Phil Weiser issued a news release urging federal energy regulators to protect Coloradans from the costs due to the spike. Weiser said he was concerned about reports that an investment bank had “benefited from a” $ 210 million windfall “due to the price and gas exchange. “
AG @pweiser requested federal energy regulators today to protect Colorado dancing from increases in the bill in the wake of the winter storm in February in a letter it sent to the Federal Energy Regulatory Commission: https://t.co/j4vu7Ubww0 pic.twitter.com/MKEfuoFLXw
– CO Attorney General (@COAttnyGeneral) March 9, 2021
CSU said the disconnections until further notice would be drawn up and resources offered to clients in need of assistance.
This is an evolving story, check back for updates.