City Council has decided to remove the proposed updates to our Net Metering Program from our 2026 rate case. Therefore, until further notice, the current net metering rate structure will remain in place. As a not-for-profit, community-owned utility, we design rates solely to recover the cost of providing service - nothing more. Our goal remains to ensure that all customers pay for the electricity they use and the infrastructure that supports it.

We respect City Council’s decision to remove the proposal from our rate case and appreciate the thoughtful dialogue and community engagement throughout this process. We look forward to continuing this dialogue and engagement into the future.

Pay bill Pay bill
“” background image gradient
Homepage Proposed changes to net metering

Proposed changes to net metering

For our 2026 rate case, we proposed updates to our Net Metering Program to help ensure our rates reflect the true cost of delivering electricity, especially during peak demand periods. With the proposal, net metering customers would not transition to Energy Wise time-of-day rates, rather they would have transitioned to an Energy Wise Renewable Net Metering Rate Option in January 2027.  

City Council has decided to remove the proposed updates to our Net Metering Program from our 2026 rate case. Therefore, until further notice, the current net metering rate structure will remain in place.

Why are changes needed?

A graph illustrating the excess solar production, gross grid consumption, net usage during summer periods and during peak demand times. The excess solar production line is shown peaking near noon, while net usage is inverted, showing lowest usage near the peak time. Peak generation falls off in the evening while consumption increases. This time is illustrated by a shaded area, displaying the time of peak demand.

We recognize that changes to rate structures can raise concerns, especially if you've made long-term investments in solar.

Not all energy is created equal. On weekdays from 5-9 p.m., electricity demand spikes, and so do the costs to purchase and deliver power. While solar production peaks midday, it drops significantly during these high-demand hours when energy is most expensive.

Currently, net metering customers are billed at a flat rate that does not reflect these peak costs. As a result, customers without solar are covering about $600 per year for each net metering customer. This cost shift is not sustainable or fair to the broader customer base.

Customer solar is an important part of our portfolio, and we appreciate the impact that our net metering customers make to their community.

A vertical bar graph with two columns. One represents utility-grade solar with a label reading "Recovered at $0.03 per kilowatt hour." The other is a much smaller graph representing customer solar that reads "Credited at $0.12 per kilowatt hour."

Utility-scale solar installations, accounting for almost 290 MW of electricity, generate energy at about $0.03 per kWh. Whereas, net metering energy, creating about 50 MW of electricity, is credited at about $0.12 per kWh. While we will continue to support our customer's choice to invest in solar, this difference contributes to the overall cost shift.

Our proposal underscored the need for a more balanced rate structure that better covers the cost of the grid infrastructure needed to exchange customer-generated solar, and deliver reliable electricity 24/7.

With this cost shift, non-solar customers are subsidizing the difference. As a not-for-profit utility, we must ensure our rates are fair and based solely on the cost of service.

Net metering proposal FAQs

How does Springs Utilities design electric rates?

As a community-owned, not-for-profit utility, we design rates solely to recover the cost of providing service—nothing more. This means we do not generate profits for shareholders. Instead, our goal is to ensure that each customer class (residential, commercial, industrial, etc.) pays its fair share of the costs required to deliver reliable electric service, maintain infrastructure, and support system operations.

For net metering customers, this includes the cost of maintaining the grid that supports energy exchange and ensures electricity is available 24/7—even when solar production is low. Our proposed changes are part of a broader effort to ensure that rates are fair, transparent and sustainable for all customers.

Colorado Springs Utilities 

It's how we're all connected.

Download our app!

Download in the apple store Download in the google play store