Aquila's Colorado electricity rates will rise 2.2 percent

- Aquila Inc.'s rates for its 90,000 electricity customers in Colorado will increase 2.2 percent starting in September.

The rate increase is the result of a settlement agreement the company reached with the Colorado Public Utilities Commission, Kansas City-based Aquila said in a written release recently.

The settlement includes an $8.2 million base rate increase and a $5.4 million decrease in the Energy Cost Adjustment that Aquila collects from customers to pay for electricity it buys and fuel it uses to run its power plants. These costs provide no profit to Aquila and must be approved by the commission twice a year.

Aquila's typical residential electricity customers will see an increase of $1.76 a month, or $21.12 a year. Typical small business customers will see an increase of $12.06 a month, or $144.72 a year.

"We believe this is a good settlement for both our customers and the company as it will allow us to recover the cost of substantial investments we have made to provide safe, reliable electric service to our customers," Gary Stone, operating vice president for Aquila's electric networks in Colorado, said in the release.