Atmos Energy has requested a sizable net increase in annual gas base rate revenue that would add more than $5 to customers’ bills each month.
The company requested an approximately $17.56 million, or 13.8%, net increase with the Colorado Public Utilities Commission.
If the proposal were to be accepted as filed, the average monthly bill for residential customers would increase by a minimum of $5.32 and a maximum of $5.61 – an 8.5% to 10.1% hike – depending on the location of the service territory in Colorado, the commission said in a news release Tuesday.
Customers in the Southwest Colorado rate area would be charged the maximum amount, while customers in the southeast would be charged the minimum, and those in the north a mid-range of $5.49.
The commission, in addition to conducting a formal review, will be holding a virtual public comment hearing April 2 to “determine if the proposed rates are just and reasonable.”
In addition to seeking an adjustment of its base rates, Atmos has requested infrastructure investment and implementation of a new bill charge to capture the effects of the 2022 Inflation Reduction Act and potential changes to state and federal tax laws, the release said.
The company requested the increase to recover costs associated with system operations and infrastructure investment, according to the release.
Atmos Energy delivers natural gas to 65 Colorado communities including Durango, Cortez, Gunnison, Salida, Canon City, Lamar, Craig, Greeley and Steamboat Springs.
Xcel Energy submitted its own gas rate increase proposal Dec. 29, according to the CPU commission’s March newsletter.
The increased rates would be used to fund critical infrastructure projects that modernize the system, enhance safety and “support Colorado’s transition toward a cleaner energy future,” according to the company.
If the proposal were to be approved as filed, residential customers would be subjected to a $7.59 per month increase, and small businesses would bear the brunt of an extra $36.47 per month.
Xcel also requested a $5 million contribution to its Gas Affordability Program, which would be funded by Xcel Energy profits, rather than through customer rates.
No official hearings for the Xcel case had been scheduled as of Tuesday. The newsletter said hearing scheduling would be announced “soon.”
To comment
Atmos Energy case:
The Colorado Public Utilities Commission encourages Atmos customers to provide written comments on E-filing, by emailing dora_puc_comments@state.co.us, by mailing comment to the Commission’s offices at Colorado Public Utilities Commission, 1560 Broadway, Suite 250, Denver, CO 80202, or by calling (303) 869-3490. Those leaving comments should reference Proceeding No. 25AL-0499G.
The CPU commission virtual public hearing will take place on Zoom from 11:30 a.m. to 1:30 p.m. and 4 to 6 p.m. Monday, April 2.
Register for the 11:30 a.m. session at: www.us06web.zoom.us/meeting/register/TfclhKTwSUiDGqGIQtjhyQ?utm_medium=email&utm_source=govdelivery#/registration
Register for the 4 p.m. session at: www.us06web.zoom.us/meeting/register/RjjEyhNhQiaBGgiYQJE5Uw?utm_medium=email&utm_source=govdelivery#/
For American Sign Language or Spanish interpretation services, call or email Megan Castle at (303) 894-2008 or megan.castle@state.co.us by Tuesday, March 24.
Xcel case:
Xcel Energy submitted its own customer rate increase proposal Dec. 29.
No official hearings for the case had been scheduled as of Tuesday, but comments can be provided online at any time at www.docs.google.com/forms/d/e/1FAIpQLSclWDeNS2FCh0NdEijNU4igpUKqRZvTIYwZ8XSA2YYx3LF6qA/viewform in reference to Proceeding No. 25AL-0538G.
For more information on all pending gas rate cases, visit www.puc.colorado.gov/gas-rate-cases?utm_medium=email&utm_source=govdelivery
The Atmos and Xcel requests come amid a broader, nationwide trend of gas bill increases.
According to a report from nonprofit PowerLines, utility rate approvals and increase requests totaled more than $34 billion in the first three quarters of last year, blowing 2024’s initial third-quarter $16 billion in approvals and requests out of the water.
Companies are asking for higher rates to address damaged and deteriorating infrastructure in connection with extreme weather events, high fuel prices and an increase in electricity demand driven by data centers, according to reporting by CBS News.
epond@durangoherald.com
