The Colorado Public Utilities Commission has finalized a plan requiring Xcel, Atmos, and Black Hills Energy to reduce carbon emissions from their natural gas systems by 41% over the next decade. However, Colorado Springs Utilities, as a community-owned utility, is not subject to this specific commission decision but must comply with a separate state mandate to develop its own Clean Heat Plan.
Unlike investor-owned utilities, the Clean Heat Plan for Colorado Springs Utilities will be approved by the locally elected Utilities Board. This process is intended to ensure that decisions reflect local priorities.
“While the State of Colorado has imposed mandates on natural gas distribution utilities, Colorado Springs Utilities supports our customers’ right to choose natural gas. As a community-owned utility, we have a legal obligation to provide natural gas service to any customer within our service territory who requests it. This commitment ensures that our customers maintain the freedom to select the energy source that best meets their needs,” according to the organization.
Affordability is also emphasized in the planning process. The utility states that it follows a 2% cost cap on implementation of its Clean Heat Plan in order to protect customers from significant increases in rates. Steps toward cleaner energy are balanced with efforts to keep utility bills manageable.
Costs associated with compliance are passed on through a temporary bill rider called the Clean Heat Plan charge. “We are committed to transparency and will continue to share information about these costs and how they support a cleaner, more sustainable future for our community. The charge will remain on bills while the Clean Heat Plan is in effect,” according to Colorado Springs Utilities.
Revenue generated from this charge funds energy efficiency programs, including rebates for efficient water heaters and furnaces, insulation upgrades, and heat pumps. These rebates are designed as incentives for customers who choose more efficient appliances.
