Colorado Springs Utilities is making a cost adjustment to lower rates for electricity and natural gas beginning April 1.
The Colorado Springs City Council gave the final approval to the two rate adjustments Tuesday morning.
Utilities estimated that the rate reductions would save the average family approximately $9.70 per month, which is roughly 3 percent. Approximately $7.60 of that reduction would come from natural gas, with the rest coming from the electric rate.
Commercial and industrial customers will likely see an even larger decrease because they have a higher demand.
Utilities Chief Planning Officer Tristan Gearhart said the agency considers adjusting gas and electricity costs four times a year to be responsive to customers. Gearhart said one reason the rate was decreasing was that the warm winter reduced the demand for gas heating and allowed Utilities to purchase gas for future use.
“We’re able to hold this rate for a long period of time. Really as we look right now, not needing to adjust this again until March of next year,” Gearhart said. “Having those in place for a long time does help with price stability for customers.”
Councilmember Nancy Henjum mentioned there will be a bill increase coming in a few months when the City Council considers a new utility bill rider related to a gas line replacement program.
Gearhart said the rider would add approximately $8 per month to the average family bill, but residents would still realize some savings. Utilities said the net change will still keep utility costs lower than in other Front Range cities.