COLORADO SPRINGS, Colo.—Colorado Springs Utilities is forecasting a 72 percent increase in monthly residential utility bills in the next 10 years, as prices for water and coal rise.
The forecast is for water, wastewater, gas and power services.
The utility expects the typical commercial bill to go up 57 percent and the typical industrial bill to grow 48 percent between 2009 and 2018. Usage in 2008 by typical customers wasn’t available.
Residential water rates are forecast to rise 138 percent and commercial rates forecast to rise 196 percent.
Water rates are expected to rise due to the $1 billion Southern Delivery System, a pipeline from Pueblo Reservoir that will increase the city’s water supply by a third.
The forecast expects the portion of bills that pays for coal will rise roughly 80 percent by 2018.
The projections are based on inflation, competition and cost of borrowing and include cuts of 200 full-time employees from Utilities’ payroll between 2006 and 2011.
Utilities spokesman Dave Grossman says volatility of commodity prices, interest rates and other factors could affect what actual rates are 10 years from now.
Already, natural gas prices have risen due to the Rockies Express Pipeline, which is moving natural gas from the region to Eastern markets. However gas production in the Rockies also is expected to rise in coming years, which should boost supplies, Grossman said.
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Information from: The Gazette,
