Colorado Springs Utilities to Raise Natural Gas Rates Due to Non-Compliant Lines
Colorado Springs Utilities (CSU) plans to increase natural gas rates by $7 to $10 for residential and $14 to $20 for commercial customers starting in July 2025, following a consent agreement with the Pipeline and Hazardous Materials Safety Administration. The rate hike is necessary due to corroded gas lines and a requirement to replace bare steel lines within ten years.
CSU's gas distribution system includes 2,751 miles of lines, with 1.87 miles unprotected steel. A recent audit revealed failures in corrosion protection, leading to multiple hazardous leaks. The cost of replacing the bare steel lines is estimated at $300 million over ten years, funded by a new charge on gas bills projected to generate between $14.5 million and $28.2 million annually from 2026 to 2029.
