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Xcel Energy Colorado announces electricity price changes

DENVER - Xcel Energy announced today it has filed with the Colorado Public Utilities Commission for a $155.8 million price increase in electricity rates, primarily to recover the associated rising generation fuel and purchased-power costs. 

If approved by the Colorado Public Utilities Commission, typical residential electric customer bills would increase by $3.48 a month, based on average use of 625 kilowatt-hours. Typical small-business electric customer bills would increase by $7.02 a month, based on use of 1,265 kilowatt-hours. If approved, the new rates would take effect January 1, 2005.

The net increase in customer bills is the result of three filings today: an increase in the Electric Commodity Adjustment (ECA), and two small decreases of less than 1 percent each for the Air Quality Improvement Rider and the Purchased Capacity Cost Adjustment rider. The PCCA is a percentage cost of existing electricity rates and is used to recover purchased capacity payments to third-party power suppliers that are not currently included in base electric rates.

“The cost of natural gas, required to produce electricity, which led to this filing, is determined by national market conditions and is influenced greatly by the overall increasing demand. The price increases continue to be driven by a nationwide, upward trend in natural gas commodity prices,” said Fred Stoffel, Xcel Energy vice president for policy development.

Other contributing factors to increased natural gas prices nationwide is the curtailed production of natural gas – from summer hurricanes – in the Gulf of Mexico, political unrest in energy-producing nations and uncertainty about the severity of weather for the 2004-05 heating season in the U.S.

Xcel Energy is encouraging its electricity and natural gas customers to seek information about various payment options. Customers may sign up for Averaged Monthly Payment and can also explore ways to conserve energy and lower their bill, by visiting Xcel Energy at www.xcelenergy.com or by calling 1-800-895-4999. Customers also are encouraged to contact the company for a free copy of the “60 Simple Ways to Save Money on Your Energy Bill” brochure and business customers may order a free copy of the “Small Business Guide to Energy Savings” on the company’s website.

Xcel Energy (NYSE: XEL) 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.