Title
A resolution setting the Gas Cost Adjustment and the Gas Capacity Charge effective August 1, 2020
Presenter:
Scott Shewey, Acting Chief Planning and Finance Officer, Colorado Springs Utilities
Aram Benyamin, Chief Executive Officer, Colorado Springs Utilities
Body
Summary:
Colorado Springs Utilities is proposing changes to the Gas Cost Adjustment (GCA) and Gas Capacity Charge (GCC) rates effective August 1, 2020. The proposed GCA rate adjustment changes the current effective rate of $0.0738 per Ccf to a proposed rate of $0.1084 per Ccf. The proposed GCC adjustments change the rates by Rate Class consistent with capacity allocations (per attached Schedule 2).
Background:
Colorado Springs Utilities’ staff provide regular updates to the Utilities Board and recommends timely adjustments per the Cost Adjustment Guidelines consistent with tariffs.
Previous Council Action:
On July 23, 2019 City Council approved the GCC rates effective August 1, 2019 per Resolution 69-19. On April 28, 2020 City Council approved the GCA rate of $0.0738 per Ccf effective
May 1, 2020 per Resolution 25-20.
Financial Implications:
Implementing the proposed rates will impact the respective customer’s gas bill as follows:
Sample Total Monthly Natural Gas bill:
Residential gas bill increase of $3.56 or 12.2%
Commercial gas bill increase of $72.55 or 20.1%
Industrial gas bill decrease of $725.40 or 21.4%
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Move adoption of the proposed resolution.
Summary of Ordinance Language
N/A
Attachments:
• Resolution
• Tariff sheets
• GCA Schedule 1
• GCC Schedule 2