Colorado Springs Utilities has entered into a long-term agreement aimed at reducing natural gas costs for its customers over the next three decades. The utility partnered with Goldman Sachs and Tennessee Energy Acquisition Corp to secure natural gas at prices below standard market rates.
The deal takes advantage of a tax rule available to municipally owned utilities, allowing Colorado Springs Utilities to lower its purchasing costs. According to the company, this will translate into immediate savings starting in the upcoming winter season.
Customers are expected to benefit from annual savings of approximately $850,000 during the colder months between November and March. Over the first ten years of the agreement, total savings are projected at $11 million. By the end of the 30-year contract, cumulative savings could reach $44.3 million.
“These savings help us keep your energy bills more stable and affordable, especially during the colder months when natural gas use is highest,” said Colorado Springs Utilities in a statement.
The utility emphasized that initiatives like this are part of ongoing efforts to protect customers from increasing energy expenses while maintaining reliable service. “We’re proud to take steps like this to protect our customers from rising energy costs and ensure reliable service for years to come,” according to their announcement.
