Title
A Resolution Setting the Gas Cost Adjustment effective March 11, 2021
Presenter:
Scott Shewey, Chief Planning and Finance Officer, Colorado Springs Utilities
Aram Benyamin, Chief Executive Officer, Colorado Springs Utilities
Body
Summary:
Colorado Springs Utilities (Utilities) is proposing a change to the Gas Cost Adjustment (GCA) rate effective March 11, 2021. The proposed GCA rate adjustment changes the current effective rate of $0.1812 per Ccf to the proposed rate of $0.5477 per Ccf. The materials provided to City Council and Utilities’ presentation include information regarding alternative approaches, as requested.
Background:
Utilities performs continuous monitoring of GCA with monthly updates provided to the Utilities Board.
Previous Council Action:
On January 26, 2021, City Council approved the GCA rate effective February 1, 2021 by Resolution 15-21.
Financial Implications:
Implementing the proposed rates will impact the respective customer’s Sample Total Monthly Natural Gas bill:
Residential natural gas bill increase of $21.99 or 58.8%; Total Monthly bill 9.5%
Commercial natural gas bill increase of $454.46 or 83.5%; Total Monthly bill 31.3%
Industrial natural gas bill increase of $4,544.60 or 86.9%; Total Monthly bill 11.0%
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
Alternative 2 is presented for City Council’s approval. Information on what have previously been referred to as Alternative 1 and Alternative 3 are included in the materials.
Recommended Action
Proposed Motion:
Move adoption of the proposed resolution or move to amend with another rate alternative.
Summary of Ordinance Language
N/A