COLORADO SPRINGS - Colorado Springs Utilities customers preparing for higher heating bills this winter will get some unexpected relief.  

The community-owned utility will not propose an increase in natural gas prices, significantly lowering its overall rate increase to 11.9 percent. The company says they plan to still increase electric, water and wastewater services.  

If approved, the average residential, four-service utility bill will increase by $18 a month, about half the increase projected just two months ago.  

A slowing economy, declining oil prices and more natural gas production in the Rockies all contribute to the lower wholesale gas prices.  

Springs Utilities is still proposing water and wastewater price increases to cover revenue shortfalls caused by the declining home building industry.  An increase in electric prices is also necessary to pay for critical infrastructure improvements and meet regulatory requirements.  

To keep costs down, the utility has reduced expenses this year by $53.3 million and cut 92 positions, in addition to 60 jobs to be eliminated in 2009.

A public hearing will be held January 13 at 1 p.m. at City Hall, 107 N. Nevada.  If approved, the new rates would take effect Feb. 1, 2009.  Copies of the filing are available for inspection at the City Clerk's Office, 30 S. Nevada and at www.csu.org.