Net Metering Rate Case

At a glance

What: The July 2026 net metering rate case for Colorado Springs Utilities (CSU): a resolution setting electric rates and rate schedule changes, and a companion resolution changing the Utilities Rules and Regulations (URR).
Outcome: Both adopted 7-2 on September 22, 2026 (Resolutions 81-26 and 82-26).
Key detail: CSU's chief executive reminded Council of a five-year grandfather period for current solar customers.

Detail

Item 26-297 (electric rates) and 26-380 (URR changes) were presented by Chris Bidlack, Acting Division Chief, City Attorney's Office Utilities Division; Tristan Gearhart was the CSU presenter of record.
Henjum thanked CSU for its work with net metering customers but did not support the rate case because distributed battery and energy storage is not yet in place.
Rainey said solar customers feel penalized, but battery and energy storage options are to be offered early next year, so he supported it.
Travas Deal, CSU chief executive, reminded everyone of the five-year grandfather period.
Electric rates motion: Williams, seconded by Leinweber. Passed 7-2. Aye: Casey, Crow-Iverson, Donelson, Leinweber, Rainey Jr., Risley, Williams. No: Gold, Henjum.
URR changes motion: Williams, seconded by Leinweber, same 7-2 result with the same members voting the same way.

Work session discussion (September 21, 2026)

Both resolutions (items 7.B and 7.C, Signed Resolutions 81-26 and 82-26) were reviewed at the work session; Chris Bidlack presented and Tristan Gearhart was the CSU presenter.

Henjum understood the matter was closed with no public comment; Bidlack said the matter concluded at the end of the August 25 City Council hearing.
Henjum asked about the two bill-impact figures; Scott Shirola, Pricing and Rates Manager, said both are correct: 33 dollars cited in July is on a 2025 basis and 38 dollars is on a 2027 basis.
Asked about a distributed battery program, Gearhart said such programs fall under demand-side management with no rate structure; the intent is to announce a program for batteries as of April 1.
Shirola said "net load" and "net consumption" have the same interpretation, and that the omission of the three-interval averaging option for net metering demand reflects the difference in interval reader timing between residential and commercial meters.
Donelson said the intent is to recover cost of service and net metering customers are not charged enough to cover that cost.

Public hearing (August 25, 2026)

The rate case was heard as a quasi-judicial hearing at the August 25 regular meeting (2026-08-25 - City Council); Leinweber was present for the hearing but excused from the votes before leaving at about 5:35 PM.

Chris Bidlack read the rate-setting standards and polled Council on ex parte contacts; all nine members had received many emails and held meetings with constituents and Utilities.
Tristan Gearhart and Scott Shirola presented: the Energy Wise net metering standard option (Option 1) and the net metering demand option (Option 2). Option 1: off-peak $0.07 per kilowatt hour, peak $0.29 in summer and $0.14 in winter, plus a $1 per day grid access charge. Option 2: $0.13 per kilowatt hour at all times with a demand charge. Gearhart said the bill-impact figure of $38 priced the average customer, Utilities starts from a $4.5 million deficit, CSU rates are about 15 percent below other Front Range utilities, and customers who roll credits month to month keep that arrangement until 2032. Shirola said an outlier with excess production could see about $30 more per month. Options take effect April 1, 2027.
Natalie Lovell, City Auditor, had no concerns about methodology or accuracy.
About 36 residents spoke in opposition; none are recorded in support.
Henjum recommended review by the Utilities Policy Advisory Committee (Donelson: it reviews policy, not rates), praised Utilities' compromises, and said a battery solution should accompany net metering changes. Gearhart said a battery program could not be evaluated until the full cost of the rate was addressed.
Donelson asked about peak pricing, why solar installation has declined, and why net exporters pay more; Leinweber asked about other resources, the $1 daily charge for small systems and ignoring the highest 15-minute reading in Option 2; Williams asked about the April 1, 2027 selection deadline.
Henjum proposed amending the tariffs so the new options do not take effect until Council approves a distributed energy storage program (rebate levels, budget, capacity, enrollment timeline) available no later than the effective date. Bidlack's poll: 3 in favor, 5 opposed. Poll on Utilities' proposed changes: 6 in favor, 2 opposed.

Hearing date set (July 14, 2026)

Resolution 61-26 setting a public hearing for August 25, 2026 on the proposed changes in Colorado Springs Utilities' July 2026 net metering rate case (file 26-260) was adopted on the Consent Calendar of the July 14 meeting (2026-07-14 - City Council), with the whole consent calendar passing 9-0-0-0. Travas Deal and Chris Bidlack were the listed presenters; no discussion is recorded.
Source: City Council minutes, July 14, 2026: https://legistar2.granicus.com/coloradosprings/meetings/2026/7/2789_M_City_Council_26-07-14_Meeting_Minutes.pdf