Fort Collins Utilities raising water rates 2%, electricity rates 3% in 2021 — The #FortCollins Coloradoan

From The Fort Collins Coloradoan (Jacy Marmaduke):

Fort Collins City Council members approved the rate increases, 3% for electricity and 2% for water, with some hesitation in light of COVID-19’s continued economic impacts on the community. For the typical household in Fort Collins, the rate increase will mean an average monthly increase of $2.36 for electricity and $0.96 for water.

Several council members said the city should consider a possible moratorium on service shut-offs if COVID-19 risk factors trigger another stay-at-home order. Cases and hospitalizations continue to mount in Larimer County, and the health department elevated restrictions on public gatherings Wednesday.

Fort Collins Utilities recently notified about 4,000 customers that service shut-offs will resume after Nov. 13. The city is encouraging residents and businesses to apply for financial assistance with their bill or set up a payment plan…

The 3% electricity rate increase will cover a bump in wholesale power costs and bolster Utilities reserves to prepare for future capital improvements. The 2% water rate increase is a result of the Cameron Peak and East Troublesome wildfires, which have ripped across Fort Collins’ watershed and are expected to cost the city between $1 million and $4.3 million in mitigation costs…

The city had planned to request a 2% water rate increase for 2022, but moved it ahead one year because of the fire, said Lance Smith, Utilities strategic finance director. Utilities is likely to propose another modest rate increase for 2022.

The Cameron Peak Fire, approaching full containment at nearly 209,000 acres, is the biggest fire in Colorado history. Utilities staff said earlier in October they expect its impact on the city’s water quality to be similar to the 2012 High Park Fire, which filled the Poudre River with ash, soil and sediment and infamously turned the stream black for a brief period. The 2013 flood eventually washed out much of the remaining debris, but city leaders consider it unlikely that Fort Collins will get another flood of that magnitude again soon…

That means the Cameron Peak Fire’s fallout will probably persist for longer, degrading water quality in the river that makes up about 50% of Fort Collins’ water supply. The city’s share of post-fire recovery work will drain an estimated $1 million to $4.3 million from Utilities funds, and the projected 2021 rate increase will produce roughly $600,000 to offset that cost.

Fort Collins Mayor Wade Troxell said he understands the necessity of the unexpected water rate increase given the “extraordinary” circumstances…

The electricity rate increase will cover a 0.3% wholesale cost increase from Platte River Power Authority and partially address a gap between Utilities’ revenues and operating expenses. Utilities has also put a hiring freeze in place and won’t give salary increases in 2021 to address the gap between revenue and expenses…

Council members agreed to approve the rate increases but keep the door open for future discussion about lingering utility rate issues. The time-of-day rate structure, which charges customers higher rates for electricity used during peak-use hours, has been in place for about two years. But council members are still hearing from residents who are dissatisfied with the perceived unfairness of the change and uncertain about how to navigate the rate structure without significantly disrupting their daily routines.

Time-of-day rates, which use cost signals to flatten the community’s peak electricity demand, make “logical, connect-the-dots, engineering sense,” council member Ross Cunniff said, “but it has not made intuitive sense for most of our residents, and that’s risky.”