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News Releases
12/22/2000
Xcel Energy files $361.6 million gas cost adjustment increase
DENVER - With national natural gas costs having quadrupled since a year ago, Xcel Energy has filed for an increase in natural gas prices of $361.6 million. If approved by the Colorado Public Utilities Commission, the increase would add another approximately 40.6 percent to typical residential customers' winter bills and about 43.5 percent to typical commercial customers' winter bills.
"The extremely high cost of natural gas is quickly becoming something of a national crisis. At present there is an adequate supply of natural gas, but the cost is having severe impacts on all customers and on the economy at large," said Cynthia Evans, vice president of Xcel Energy for Colorado, Wyoming and Arizona.
The requested gas cost adjustment reflects the increase in prices being charged to the company by its gas suppliers. These prices are passed along – dollar for dollar – by the company to its customers.
"The extremely high cost of natural gas is quickly becoming something of a national crisis. At present there is an adequate supply of natural gas, but the cost is having severe impacts on all customers and on the economy at large," said Cynthia Evans, vice president of Xcel Energy for Colorado, Wyoming and Arizona.
"Nationally, costs for natural gas have risen from around $2.30/mmbtu a year ago to more than $10.00/mmbtu today. This will be the third increase passed on to Colorado customers in the past six months," said Evans. "This is unprecedented. Typically we ask the PUC once a year, in September, to adjust the costs so that our customers are paying the true costs of natural gas in the market place. Never has the cost of natural gas risen so quickly and dramatically. This has forced Xcel Energy to again ask the PUC’s approval to pass these costs on to customers."
In June, the PUC approved a $117 million increase for gas costs that went into effect July 1. In September, the PUC approved a $126.2 million increase that went into effect October 1. If approved by the PUC, the new natural gas cost would be effective Jan. 6, 2001. The cumulative effect of these three increases will nearly double customers’ winter bills from a year ago.
"If they haven’t already, it is not too late for our customers to consider things they can do to reduce their natural gas consumption this winter," said Evans. "There are many private contractors in the area that provide home energy audits and weatherization programs. Or, if you are a do-it-yourselfer, the local hardware or home-improvement store can provide tips and materials for insulating and eliminating drafts."
If approved, based on 12-month averages, a typical residential customer would see a monthly increase of $21.16 for 80 therms of natural gas. Commercial customers would see an estimated monthly increase of $100.24 for 379 therms. These prices reflect an increase in the costs of the natural gas only. If customers also increase their natural gas usage due to this year's colder weather, the increase on their bills will be even higher. [A therm is equal to 100,000 British thermal units (Btus). One Btu is the amount of heat it takes to raise the temperature of one pound of water by one degree Fahrenheit.]
Xcel Energy's request includes a $9.8 million refund being returned to customers, primarily for over-charges by Kansas natural gas producers in previous years. Without this $9.8 million refund, the requested gas cost adjustment would have topped $370 million.
One thing customers can do to avoid having to pay high winter heating bills is to sign up for the company's budget billing program. Customers in the budget billing program pay a flat rate based on the average annual energy usage for their home. While the bill for a typical home may vary from $50 in summer months to $150 in winter months, budget billing on such an account could be a flat rate of about $100 per month. To get information or to sign up for budget billing, customers can call 303-623-1234, or for customers outside the metro area, 1-800-772-7858.
The gas cost adjustment procedure was established in the 1970s to help utilities better manage the fluctuating cost of natural gas supplies. The filing made by the company today is necessary because of the steep escalation of natural gas prices.
Customers who have trouble paying their bills on time can call Xcel Energy’s Personal Accounts office at 303-571-3101 to discuss payment options. Low-income customers can contact the Colorado Energy Assistance Foundation at 303-825-8750 (or outside of Denver 1-866-HEAT-HELP or 1-866-432-8435) to see if they might qualify for financial assistance on their energy bills.
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