COLORADO SPRINGS, Colo. (KRDO) – While millions of Texans were without power during the winter blast last week, Colorado Springs Utilities reported that all was well along the Front Range. Now CSU is planning an emergency meeting on Wednesday because the cost of generators had a huge impact on the annual budget for natural gas last week.
According to a spokesman for Colorado Springs Utilities, KRDO has said that CSU has now spent a large portion of its annual funding for natural gas on generators.
Natalie Eckhart with CSU says that the extreme demand for electricity and natural gas from 13 to 16 February resulted in a rise in the price of natural gas. While CSU sees market prices of around $ 2.50 / Dekatherm, the price has skyrocketed to almost $ 200 / Dekatherm.
At the special finance committee meeting, officials said that during a four-day period in which natural gas prices soared, they spent an estimated $ 95 million. It would usually cost between $ 7-10 million.
But in the end, the money for the increased costs has to come from somewhere. Eckhart said: “We are currently exploring alternatives for how we will continue to pass on natural gases to our customers.”
CSU leaders discussed three options on how customers will pay for the increase. The first will increase the cost of each customer’s natural gas cost by approximately $ 11.45 per month from April 2021 to the end of January 2023. The second will increase it by $ 18.10 per month until April 2022. The third will increase it to $ 36. 43 per month increase, but only until the end of the year. In total, customers will have to pay about $ 300 more just for gas.
However, it is not only the cost of natural gas that has risen, but also electricity. CSU has also released cost estimates on how much customers will have to pay for both rate increases. Option number one would add $ 48.47 to the bills for home customers starting in April and lasting until the end of the year. Option two, which is apparently the one that benefits the most, will add $ 25.03 to each account until the end of April 2022. Finally, option three will add $ 16.21 to each account until the end of January 2023 The total is about $ 385.
The Colorado Springs City Council will decide within March what timeline it is about.
This news comes after Governor Jared Polis praised an inquiry by the Public Utilities Commission into understanding utility planning. Polis said he believes customers should have the choice to reduce or abandon the power for a few hours “to avoid hundreds of dollars extra in their costs.”
This is an evolving story and we are working to get more information. Check back for updates.