City Council Votes On Utilities Rate Hike After Power Plant Fire

Drake Power Plant on day of the fire, May 5, 2014

Colorado Springs City Council has made it official: Springs Utilities customers will see a rate hike because of the Drake Power Plant fire.

Rates have stayed the same in the weeks since the May 5 fire, but Springs Utilities says that money is needed to pay for the replacement power the company has been forced to purchase. The company has had to use other power plants and buy replacement power from outside sources, a cost estimated at $3 million a month.

City Council voted in favor of the rate adjustment Tuesday. That means the average family can expect to see a 7.4 percent, or $5.34 a month increase. Business customers will have their rates go up 10 or 11 percent. The new rates will start June 1.