News Releases

Xcel Energy/Cheyenne Light files for Gas Cost Adjustment

CHEYENNE, WYO. - Xcel Energy/Cheyenne Light today filed its annual Gas Cost Adjustment (GCA) application with the Wyoming Public Service Commission.  The Company is requesting authority to increase natural gas rates by $ 6,116,537, approximately 19% with an effective date of October 1, 2004.

If approved by the Wyoming Public Service Commission, typical residential customer bills would increase by $10.29 a month, based on average monthly use of 8 dekatherms per month.  Small business customer bills would increase by $57.86 per month, based on average monthly use of 45 dekatherms per month.

By utilizing the GCA mechanism, Xcel Energy/Cheyenne Light passes through the cost of natural gas from suppliers, and the cost of transporting gas to the company, which in turn is then delivered to the customers.  Xcel Energy/Cheyenne Light does not retain or make a profit from this dollar-for-dollar exchange.  The GCA mechanism is used for increases as well as decreases.

Rick Kaysen, President of Xcel Energy/Cheyenne Light said “the purpose of the application is to reflect natural gas costs from the various producers/suppliers forecasted to be incurred from October 1, 2004 through September 30, 2005, to reflect the anticipated transportation costs by the pipeline service providers, and to reflect the balance of the commodity balancing account.”  Kaysen noted that gas market conditions have led to this requested increase.

 Nationally, the Summer of 2004 natural gas costs have been significantly higher through August than those in the Summer of 2003.  Gas costs this summer have increased due to concerns about several factors, including continued sluggish production despite increased drilling, concerns about weather, record high oil prices, and the ability of the gas industry to completely fill underground storage by the end of October.

Although Xcel Energy/Cheyenne Light has requested to increase natural gas rates, an American Gas Association Survey shows Xcel Energy/Cheyenne Light rates are among the lowest in the nation.  The survey’s natural gas rates are representative of the largest reporting gas local distribution companies for the American Gas Associations Monthly
Typical Bill Comparison for December 2003.  Xcel Energy/Cheyenne Light’s residential rates based on survey results using an average of 100 Therms for billing is second lowest   in the nation, and commercial rates, based on an average 300 therms is the lowest in the nation.

Kaysen added that natural gas production has improved, but still lags behind demand; storage of natural gas both regionally and nationally is improved over 2003; and that pipeline capacity out of the Rocky Mountain region, such as the Kern River Pipeline enhancement, has had a continuing effect on the cost of natural gas.  He also stated, “that it is likely price volatility will continue and gas costs will remain higher.”

Xcel Energy/Cheyenne Light offers to customers the “60 Ways to Cut Home Energy Costs and Consumption” brochure that provides helpful ideas in reducing energy usage.  The brochure is available at no cost by calling Xcel Energy/Cheyenne Light at 638-3361.

Customers may sign up for Xcel Energy/Cheyenne Light’s Average Monthly Payment program.  Participating customers pay a flat monthly bill based on the average annual energy use for their home or place of business.  For example, a home with bills ranging from $50 during summer months to $150 during winter months could pay a flat rate of $100 per month for 11 months, with the balance trued-up in the 12th month.  For more information on this program, customer’s can contact Xcel Energy/Cheyenne Light at 638-3361.

October 1, 2004 through September 30, 2005

*Prices used represent typical Xcel Energy/Cheyenne Light residential and small business customers.  Price differentials are based on current prices and those proposed in the GCA.  Prices are subject to change depending on market fluctuations.