We're proposing an increase to the natural gas fuel rates in response to the projected rise in natural gas prices this spring.
If approved by City Council on March 25, 2025, new rates would be effective April 1, 2025.
As a nonprofit, community-owned utility, Springs Utilities passes fuel costs - up or down - directly to customers four times a year (typically January, April, July, and October) through electric and natural gas fuel rates, called cost adjustments.
Natural gas prices are expected to increase this spring, as we experience lower than normal supply in storage. Underground storage is 12% below the five-year average for this time of year.
The total bill impact for the average residential customer bill is $6.47. Individual customer bill impacts vary depending on weather, household use and home efficiency.
Utilities' current natural gas fuel recovery rate was below the average wholesale market price through winter, shielding our customers from price increases. Looking ahead, the proposed increase more closely reflects the expected future market costs. We will continually seek opportunities to capture lower prices as the market shifts.
To protect customers from market changes, Springs Utilities buys natural gas at lower rates when demand isn’t as high and we carry this inventory in storage. We use other long-range tools to lock in a portion of the supply at lower prices.
The last fuel rate increase was in October 2024. Prior to October 2024, the last fuel rate increase was in October 2022.
Our natural gas rates remain competitive compared to utility providers along the Front Range. Compared to other Front Range utilities, our natural gas fuel rates will be about 29% lower than average.
The estimated monthly impact on a typical customer four-service bill would be as follows:
Several programs are available to help customers, including: