COLORADO SPRINGS, Colo. (KKTV) – Colorado Springs leaders gave the green light Tuesday for a five-year utilities rate increase plan to move forward to a final vote, which will ultimately determine whether or not the plan takes effect.
More than two hours of discussion took place Tuesday at Colorado Springs City Council, where utilities leaders presented their plan to increase rates, year over year, through 2029.
The proposal includes 5% to 6% increases each year. Right now, CSU says their average customer pays about $254 dollars a month. With the proposed increases, CSU projects the average customer would pay about $80 more monthly, or $334, by 2029 if the plan is approved.
“This is extremely impactful for our community, we have no doubt,” said CSU Chief Executive Officer Travas Deal to City Council. “We are doing everything that we can,” he added.
In the plan, CSU is also proposing a time of day rate change, under which customers would be charged relatively more for electricity between 5 and 9 p.m., which CSU says are peak usage hours.
A member of the city audit committee and a citizen known to speak up on impactful matters, Barry Baum, told council members the plan does not need to be tossed out entirely, but rather reworked.
“I do not believe that the City Council should approve the five-year, $3.3 billion spending plan,“ Baum told councilmembers. ”Instead approve the plan with only one to two years, spending in increments. Too much can and will change in five years.”
Utilities says main reasons for the proposed increases include community growth, an increased need for service reliability, and government regulations on clean energy goals, including reducing carbon emissions.
“Am I happy with the state and federal mandates? Absolutely not,” Deal said in the council meeting.
A final city council vote is planned for Nov. 12. If the plan is approved, CSU officials say the projected increases are still subject to change over time.
Copyright 2024 KKTV. All rights reserved.