Colorado Springs Utilities has announced details about its approach to the Clean Heat Plan, following recent actions by the Colorado Public Utility Commission (PUC). The PUC finalized requirements for investor-owned utilities such as Xcel, Atmos, and Black Hills Energy to reduce carbon emissions from their natural gas systems by 41% over the next decade.
As a community-owned utility, Colorado Springs Utilities is not subject to the PUC’s decision. Instead, it must comply with a separate state mandate requiring development of its own Clean Heat Plan. Approval for this plan comes from the locally elected Utilities Board, rather than state regulators.
The utility emphasized that customer choice remains central. “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.”
Affordability was also highlighted as a key concern. “Our Clean Heat Plan is informed by state targets, but affordability remains our top priority. We observe a 2% cost cap on implementation to protect customers from significant rate impacts. This means every step we take toward cleaner energy is balanced with the need to keep utility bills manageable.”
Regarding transparency and costs associated with compliance, the utility stated: “The costs we incur to comply with the state mandate are passed on to customers through a Clean Heat Plan bill rider, a temporary charge added to their bill. 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.”
Revenue generated from this charge will fund energy efficiency programs offering rebates for appliances such as water heaters and furnaces, insulation upgrades, and heat pumps. These incentives aim to encourage customers to adopt more efficient technologies.
