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Xcel Energy proposes December natural gas prices

DENVER: - Xcel Energy today proposed a slight increase in natural gas commodity prices for December 2004 to the Colorado Public Utilities Commission, as part of a new monthly cost adjustment designed to help customers better manage their energy bills.

The natural gas commodity price for Xcel Energy’s residential and small-business customers in Colorado would increase by 4 percent in December 2004, to $0.6654 per therm from $0.6375 per therm in November 2004.

With expected colder weather next month and an increase in use, typical residential natural gas bills would be $125.50, compared to $94.22 for November. Typical residential customers are expected to use 32 percent more natural gas next month, or 141.4 therms, compared to 107.2 therms this month.

Typical small-business customer bills would increase to $560.05 in December from $433.52 this month. Typical small-business customers also are expected to increase use by 26 percent next month, to 663.4 therms from 527.2 therms in November.

If approved, the new prices would take effect Dec. 1. All costs associated with increases or decreases in the commodity price of natural gas are passed along to customers on a dollar-per-dollar basis. Xcel Energy does not profit from the sale of the natural gas commodity.

The price increase for December continues to be driven by a nationwide, upward trend in natural gas and oil commodity prices, and curtailed production of natural gas – from summer hurricanes – in the Gulf of Mexico.

In November 2004, Xcel Energy moved to a monthly adjustment for its purchased natural gas supply costs – instead of an annual cost adjustment – to better reflect the market price of natural gas. This in turn gives customers a chance to adjust their use.

Xcel Energy encourages customers to explore ways to conserve energy and lower their natural gas bills, by visiting Xcel Energy at www.xcelenergy.com or by calling 1-800-895-4999 for a free copy of “60 Simple Ways to Save Money on Your Energy Bill.” Customers also are encouraged to contact the company for information on “Averaged Monthly Payment.”  Business customers may order a free copy of the “Small Business Guide to Energy Savings” on the company’s website.

Customers may also wish to seek low-income energy assistance by contacting the federal Low-Income Energy Assistance Program (LEAP) or Energy Outreach Colorado (EOC). Call 1-866-HEAT HELP (1-866-432-8435) for further information.