Fort Collins approves debated electric rate structure

UPDATE, JUNE 7: Here's a guide on what to expect Oct. 1, when the new time-of-day rate structure goes into effect.

ORIGINAL STORY: Fort Collins is set to increase electricity rates by an average of 1.8 percent next year, updating the tiered rates that change how much customers pay based on how much electricity they use — and charging more depending on when they use it.

The new usage-based rates will be put into effect in January, while peak-time rates will start in October.

A typical Fort Collins household could expect its monthly bill for electricity, stormwater, wastewater and water to rise by $3.70, to an average monthly cost of $168.43.

However, several residents who said they heat their households with electricity worried the time of use rate structure — which won't go into place until October — would send their bills through the roof, even if that roof already is covered in solar panels.

Under the peak-rate structure, users will pay about 20 cents per kilowatt hour for electricity during peak hours in the summertime. Off-peak summertime rates would be about 4 cents per kilowatt hour. If usage exceeds 700 kilowatt hours, the rate increases nearly 2 cents per kilowatt hour.

For comparison, without the peak use structure, users would pay between 6 and 11 cents per kilowatt hour, depending on the tier their usage falls into.

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Peak times are listed as 2-7 p.m. weekdays from May through September, with holidays excluded. During non-summer months, peak times would be 5-9 p.m.

Council member Ray Martinez opposed the change, citing stories of individuals who can’t control when they use electricity. He used the example of shift workers with children, who don’t have the option of changing when they use air conditioning or heat.

"That to me is what's sad,” Martinez said. “Yes, they have the knowledge, they have the insight. They're not dumb. But they don't have the choice."

Shannon Blasus said he has $50,000 worth of solar panels already on the roof of his all-electric home, but still expects to pay about $500 per month for electricity in the winter months, though the cost balances out in the summer when he’s not home much. That said, it will be the sticker shock of the individual bills that will bite customers.

"If you pass this, I'm going to have an $800 electric bill,” he told the council during public comment. “This is a second mortgage."

The proposal eked through on a 4-3 vote, with council members on both sides arguing that low-income households will need particular attention. Council members Ross Cunniff, Gerry Horak, Bob Overbeck and Kristin Stephens supported the change. Martinez, Council member Ken Summers and Mayor Wade Troxell voted against it.

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Stephens encouraged the adoption of a city program to help people maximize their electricity conservation efforts, but noted that the new structure means there will likely be times when people see their monthly bill drop. Horak, who said his home is all electric, said the city needs to set concrete goals for helping people with lower and fixed incomes cope with the increased rates and new rate structures.

City staff said seasonal increases would likely balance out during the off-season. The city increased the rates to match increases in wholesale rates it pays for electricity provided through Platte River Power Authority.Search Assets

In other business

The Fort Collins City Council on Tuesday gave unanimous initial consent to the creation of a Midtown Business Improvement District. The district encompasses businesses directly along College Avenue and the portion of Foothills Parkway that runs through the Foothills shopping center. The district would extend from Drake Road on the north to Boardwalk Drive to the south.

It would create a nine-person board to “advocate for — and directly fund — needed improvements as Midtown comes into a new era,” city documents state. That includes proposals for marketing and events and cosmetic improvements, such as public art and flowers

Its operations would be paid for with a $10-per-foot-of-frontage fee on properties within the district. That levy is expected to bring in about $170,000 each year, according to city documents. Formation of the district was supported by a petition of Midtown property owners.

The district is set for a final approval at the council’s Dec. 5 meeting.

This story has been updated to clarify that the tiered use system has new rates and that peak-use and non-peak use is the new structure added to utility bills.