Proposed Rate Cases

June 2008 Electric rate case

On April 8, Colorado Springs Utilities proposed to City Council changes to electric prices and requested a public hearing for May 13. If approved by City Council, the changes would be effective June 1. No changes are proposed for natural gas, water and wastewater services.

Significant elements of the rate case

Renewable Energy Certificates
We propose to offer Renewable Energy Certificates as a way for customers to help offset their carbon footprint. This voluntary monthly investment of $.34 per 100 kWh would help cover the cost of developing renewable energy sources in the United States. See additional details in the REC fact sheet.

Electric Base Price
Colorado Springs Utilities has identified a shift in how residential and business customers use electricity. More homes with air conditioning, big screen TVs, monitors and computers are now putting more of an impact on our fixed costs. If the price change is approved, average residential electric bills would increase modestly.

• The electric portion of the average residential bill would increase by $1.32, or 2.7%, based on 600 kWh per month.
• The average electric bill is currently $49.77 per month and would increase to $51.09.
• This is the first electric base price increase since 2004.

Electric Price Option
We are proposing an electric rate option to address customers’ desire to better manage their bills through efficient use of electricity and our facilities. The experimental rate offering is a pilot program and limited to the first 400 customers to sign up. The pilot option allows Springs Utilities to evaluate the program before making the option permanent or extending the option to all customers.

• Fixed Cost Option. Residential customers would have the option to sign up for a rate program that charges a higher fixed charge and a lower commodity charge.  Residential customers that consistently use more than 1,200 kWh per month may benefit from this program. These customers typically have a higher load factor (which is a measure of efficiency) than the typical residential customer. The rate features an access charge of $18.00 per month compared to the proposed $7.68 for the standard residential rate, but with a lower rate for each kilowatt hour used.

How our electric rates compare
Our residential electric rates are third lowest among the 16 western U.S. cities we most compete with for economic development.

Ways we are cutting costs
We are implementing new technologies, improving processes and using automation to maintain reliable service at the lowest possible rates for our customers.

• We eliminated 43 positions in 2007 and 39 additional positions in 2008.  We are making these reductions while serving a growing community.
• We maintained high credit ratings (AA) to keep interest payments low. Only one electric utility in the nation has a higher credit rating than Colorado Springs Utilities. Higher bond ratings help reduce our borrowing costs by millions of dollars and help keep rates low for customers.
• In 2007, we injected 60,000 feet of buried cable with silicon to extend the life of the cable by 20 years. We will continue the program in 2008 and beyond.

Public Hearing
May 13, 2008, 1 p.m.
Colorado Springs City Hall, 107 North Nevada Ave.