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SourceGas requests Colorado non-gas rate adjustment

SourceGas Distribution LLC (“SourceGas”) announced June 24 it has submitted a request to the Colorado Public Utilities Commission (“CPUC”) for a rate adjustment that would increase its non-gas rates. The requested amount is $6,042,185 and addresses increased costs associated with providing quality utility service to SourceGas customers.

SourceGas has taken substantial steps to control expenses to avoid rate increases, including workforce reductions, operational enhancements and efficiencies. These have resulted in annual savings of nearly $3 million. Despite these efforts, we must continually make investments to maintain our system to provide safe and reliable service, and our costs continue to rise.

If the request is approved, the average residential customer in Base Rate Area 2, which includes Northeast Colorado, in and around La Junta, and the Pagosa Springs and Bayfield areas, the average residential customer will see a monthly bill increase of approximately $1.75, or 2.58 percent; and the average small commercial customer will see a monthly bill increase of approximately $2.69, or 2.38 percent. The actual increase to an individual customer’s monthly bill could be higher or lower depending upon the amount of gas consumed.

The request does not affect the largest portion of a customer’s bill, the natural gas “commodity” component, which is based on market prices for natural gas and accounts for 65 to 75 percent of a typical customer’s total bill. The last increase in general distribution rates was approved in 2008.

The new rates are proposed to go into effect Aug 1. This timing is subject to suspension by the CPUC while the filing is being considered.

Additional information is available online at