Xcel proposes higher electricty, natural gas bills
Xcel Energy Inc. said Monday it wants to raise electricity and natural gas rates for its Colorado customers.
The utility filed a request with the state's Public Utilities Commission to increase electricity bills by 15 percent during the second quarter.
Xcel made a separate filing to lower natural gas bills for April by 27 percent to 31 percent.
Minneapolis-based Xcel, the parent of Public Service Company of Colorado, said local wholesale natural gas prices have nearly quadrupled in the last six months. Increased pipeline capacity out of the region has largely eliminated lower-than-average prices for natural gas that benefited Colorado customers for most of 2007, the company said.
Xcel said the higher electric bills are a reflection of the increased prices for the natural gas and coal the company uses to generate electricity, as well as the increased costs to purchase electricity from independent power producers quick payday loan.
Xcel it needs to raise $86.5 million in the second quarter to cover the higher costs.
The electric bill for an average residential customer is expected to increase by $8.53 in April, to $65.02, and for a typical small-business customer by $13.96, to $104.26.
Although Xcel is proposing a 4 percent natural gas commodity price increase in April, due to the same market forces, overall bills are expected to drop as warmer weather prompts a decline in natural gas usage. Residential customers are forecast to use 32 percent less natural gas in April, causing a 27 percent drop in their bills, to $72.04.
Small-business customers are expected to use 35 percent less natural gas, which would decrease their bills by 31 percent, to $289.87.