Colorado Springs Utilities customers may pay less for natural gas beginning later this month.

During a City Council work session on Monday, Colorado Springs Utilities staff proposed the third gas rate decrease since last January.

The proposal comes before the council because of lower-than-expected costs for natural gas, driven by increased supply and lower demand, said Scott Shirola, Colorado Springs Utilities pricing and rates manager.

“With that change in the gas markets, we wanted to be really responsive and move as quickly as possible to bring those savings on to our customers,” he said.

On average, residential bills are projected to decline from $253.91 per month to $247.49, or by 2.5%, Shirola told the council. In January 2023, customers paid about $277 a month for gas, electricity, water and wastewater services provided by the city-owned utility.

If the board approves the new gas rate at its regular meeting on Tuesday, it will be effective Jan. 15.

Including the proposed decrease, Colorado Springs Utilities customers will pay about 11% less for all four utilities compared with other four-service utilities providers along the Front Range, Shirola said. Colorado Springs Utilities customers will pay 34% less for natural gas than other customers along the Front Range, according to a news release from the utility.

Some customers may see an even larger decline in their monthly bills than expected, based on their actual usage, home efficiency and weather, according to a staff presentation.

Shirola said because natural gas usage is seasonal, it’s common for Utilities customers to use more than twice as much natural gas in the winter than the utility’s sample bill estimates. During the winter months, he estimated customers would see a cost savings of $15 a month on a typical residential bill, compared with current rates.

Because of various gas and electricity rate decreases the City Council passed over the last year, and assuming the council approves on Tuesday the current proposed natural gas rate decrease, Shirola said the average utility bill will be $30 lower, or nearly 11%, than it was in January 2023.

Compared with the average winter utility usage a year ago, an average Colorado Springs Utilities customer is projected to pay nearly $97 less, or almost 26%, this winter, he said.

Councilman Dave Donelson, who chairs the Utilities board, praised the projected savings at Monday’s council work session.

“That’s an amount of money that really matters to people,” Donelson said.

The proposed natural gas rate decrease will help offset electric and gas base rate increases that went into effect Jan. 1. The base rate increases raised the average residential bill by around $8 a month.

Utilities officials said customers could still see high heating bills due to cold weather, but offered steps to help manage costs.

For example, residents can weather strip doors and windows to improve insulation; residents should change furnace filters every 30 days and schedule regular service; and during winter, residents should set their thermostats no higher than 68 degrees when at home and to 60 degrees when away from the home or when sleeping.

For more information on other tools the utility offers to help customers manage costs, including budget billing and payment assistance, visit csu.org.