COLORADO SPRINGS — Part of the Colorado Springs Utilities (CSU) 2025 plan is to set how much people pay for electricity and when. The project is called Energy Wise. Customers would be charged different rates for electricity based on the time of day it is used.
A time-of-day rate is based on the time of day you use the most electricity. It is similar to peak pricing that's used for air travel, cell phones, and hotel stays.
Kineo Fit Group Training Studio and Kalea Yoga studio in Colorado Springs uses lots of electricity.
“We do have treadmills that need electricity. We've got lights in there. We've got music going on. So all of these things take, obviously, electricity,” said Owner Keith Jackson.
Jackson said he would love for his utility bill to be lower.
“As a small business, every dollar that is spent on expenses is out of your profit,” said Jackson.
CSU is proposing the project Energy Wise. Under a time-of-day-rate, CSU customers would pay lower rates during periods of low demand. These are called off-peak. People would pay higher prices during periods of high demand known as on-peak. The proposed project from CSU would make the summer and winter on-peak hours from 5 to 9 p.m on weekdays. Off-peak hours are all other times.
“So, from the period of 5 to 9 p.m., energy will be more expensive beginning October of next year for our customers, if the rate case goes through,” said Tristan Gearhart, Chief Financial Officer for CSU.
CSU gave a presentation to the Colorado Springs City Council on Tuesday.
“Something as simple as moving a few loads of laundry a month off of the 5 to 9 period of time could end up saving you on your electric bill,” said Gearhart.
He said people could save money if they use electricity during off-peak hours.
“Look at things like using their dishwasher less during that period of time, using their clothes dryer less during that period of time, if you have an EV moving, the time that you're charging that vehicle off of those periods of time, because we pay the most during that period of time to procure the energy that goes across the wires,” said Gearhart.
But Keith said on-peak are the busiest times for business.
“I mean, our clientele is going to come at certain times, and I can't fluctuate based on when utilities are cheaper. So, as for a business, it doesn't really change what we would be doing, and how much usage we'd be using,” Jackson said.
Jackson said his electric bill is anywhere from $450-800 a month.
“If we are running a lot of air conditioning in the summers. That definitely brings our electric bill up and then, then the winter time, if we're running a lot of heat, especially we do heated yoga classes here. So that definitely changes our usage and our bills,” said Jackson.
He said CSU'S Energy Wise project would cost him even more.
“Something we have to pay, right? We don't have the option of not having lights on or heating a class. We have to use utilities. So, we're kind of at the subject of whatever rates is going to be,” said Jackson.
If approved, CSU said this would become the standard rate for residential and business customers starting next October. If people do not think this time of day rate works best for them, they will have to opt out.
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