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Colorado PUC Approves Monthly Gas Cost Adjustment

DENVER - The Colorado Public Utilities Commission today approved a settlement agreement that allows Xcel Energy to adjust natural gas prices on a monthly instead of annual basis beginning Nov. 1, 2004.

Under the current annual Gas Cost Adjustment, Xcel Energy adjusts costs associated with purchasing natural gas supply for its customers each October, and passes along increases or decreases in price to customers once a year. The company believes that the inefficiencies of the annual process, in light of the current natural gas marketplace, could be reduced under a monthly process.

“We proposed changing from an annual natural gas cost adjustment to one that adjusts every month, to improve our pricing information and help customers better manage their energy bills,” said Fred Stoffel, Xcel Energy vice president for policy development. “Market prices for natural gas change more frequently than once or twice year. With a monthly adjustment, we will be able to respond to market price trends earlier by either lowering or raising natural gas costs.”

Formal approval of Xcel Energy’s request is anticipated in a written decision to be issued by the commission by Sept. 20, 2004. There are primarily two costs related to the Monthly Gas Cost Adjustment – the natural gas commodity and upstream services. As with the annual cost, adjustment, costs under the Monthly Gas Cost Adjustment will be passed on to customers dollar-for-dollar with no markup for profit. 

Stoffel noted that the biggest factor affecting energy bills is significant changes in energy consumption. With the Monthly Gas Cost Adjustment, consumers will be aware of changes in prices on a monthly basis, they will see slightly more variation in energy bills from month to month, and will be able to accordingly adjust consumption.

Under the settlement agreement, Xcel Energy will publish the pricing information on the first day of each month in The Denver Post, and if the first day of the month falls on a Saturday, the information will be published in the Rocky Mountain News.  Also, pricing information will be available on the company’s website, at www.xcelenergy.com, or by calling 1-800-895-4999.

Xcel Energy is a major U.S. electricity and natural gas company with regulated operations in 11 Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. In terms of customers, it is the fourth-largest combination natural gas and electricity company in the nation. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.