Each year, we develop our annual budget and set rates to provide safe, reliable service and keep our prices competitive.
Our experts look ahead to long-range plans to make sure we have the resources and staffing to maintain and expand our complex system. When compared to other Front Range utilities, our current four-service bill is on average 7.6% lower.
Looking ahead, if proposed changes are approved, our rates are expected to remain 7% lower.
Here’s five things to know about what's proposed for 2024:
1. This fall, we’re proposing an 8% electric and a 6% natural gas base rate increase.
Base rates are reviewed and updated once a year. The electric base rates have remained the same since 2018, and natural gas base rates were last changed in 2021. As a not-for-profit, community owned utility, we do not make a profit on the rates we charge customers. Rates are designed to recover the cost of providing services.
Revenue from rates is invested back into the system to maintain and update aging infrastructure, prepare for future demand and meet environmental and regulatory requirements.
2. A new natural gas charge, the Colorado Clean Heat Plan Charge, is proposed to recover expenses related to meeting state law.
The charge would be about $0.75 per month on a typical residential customer bill. This charge will appear as a separate line on your natural gas section of the bill. Like base rates, it will be reviewed annually. Total new funding is expected to be about $2.7 million. The separate charge allows us to provide transparent information about specific costs.
3. The charge will support energy efficiency programs to meet goals required under Colorado’s Clean Heat Plan.
State legislation passed in 2021 - the Clean Heat Plan (Senate Bill 21-264) - requires utilities to adopt programs that encourage customers to reduce emissions generated by natural gas-based appliances and heating systems.
The revenue will be used to fund energy efficiency programs that will help reduce greenhouse gas emissions and to purchase renewable natural gas. Programs include customer rebates for energy efficient water heaters and furnaces, insulation, and heat pumps.
The rebates are intended to provide customers with an incentive to switch to newer, high-efficiency gas or electric appliances and reduce greenhouse gas emissions.
This is part of our transition to a new energy future. Our goal is to reduce carbon emissions and protect our community’s air quality, while maintaining reliability and minimizing impacts on customer rates.
4. The total of all proposed increases, including the new charge and base rates is about $8/month (typical residential four service bill).
The proposed new charge is not a flat fee. It will be based on your natural gas use. If approved by City Council in November, the new energy rates would be effective Jan. 1, 2024.
5. While base rates are increasing, we've had fuel rate savings that have been passed on to customers in 2023. The combination of proposed base rate increases, and fuel rate decreases means residential customers can anticipate their total bill to be 6 to 8% lower as of Jan. 1, 2024, compared to Jan. 1, 2023.
Thanks to a drop in fuel prices, customers can expect their total January 2024 bill to be about $24 lower than the beginning of 2023, even with the proposed energy price increases.
The typical residential customer bill in January 2023 was $277.49, compared to $253.91 for a sample bill for Jan. 1, 2024.
Important dates:
- The 2024 preliminary rate case and proposed budget was presented to the Utilities Board on Aug. 16.
- The first reading of the budget and rate case hearing at City Council is Oct. 24, with final decision and vote by Council on Nov. 14.
