Colorado Springs Utilities has entered into a long-term agreement to purchase natural gas at reduced rates, a move that is expected to result in significant cost savings for its customers over the next three decades.
The utility company reached the deal through a partnership with Goldman Sachs and Tennessee Energy Acquisition Corp. As a municipally owned entity, Colorado Springs Utilities is able to use a specific tax rule that lowers purchasing costs for natural gas.
Under this agreement, the utility estimates it will save approximately $850,000 annually during winter months from November through March. Over the next 10 years, total savings are projected at $11 million, with an estimated $44.3 million saved over the full 30-year period.
“These savings help us keep your energy bills more stable and affordable, especially during the colder months when natural gas use is highest,” said a representative of Colorado Springs Utilities.
The utility emphasized its commitment to protecting customers from increasing energy costs and 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,” the statement continued.
