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Xcel Energy proposes drop in March natural gas price

DENVER - Xcel Energy today proposed a 16 percent decrease in March 2006 natural gas commodity prices. Coupled with an expected decrease in use, projected bills would fall next month by 24 percent for typical residential customers and by 23 percent for typical small-business customers.

The natural gas commodity price proposed to the Colorado Public Utilities Commission (CPUC) for residential and small-business customers would decrease to $0.6851 per therm in March from $0.8180 per therm in February. The new price reflects anticipated natural gas costs only for the month of March.

Typical residential customers are expected to decrease consumption by 14 percent in March compared to February, so their overall natural gas bills would decrease to an average of $95.97, based on consumption of 103.1 therms. This compares to $125.89 this month on use of 119.9 therms.

Typical small-business customers are expected to use 12 percent less natural gas in March compared to February. Typical natural gas bills then would be $447.40, based on consumption of 503.5 therms, compared to bills this month of $579.48 on use of 569.9 therms.

This month, following CPUC approval, Xcel Energy reduced natural gas commodity prices by 21 percent from January. Coupled with declining use, bills are expected to decrease by 31 percent for typical residential customers and by 35 percent for typical small-business customers.

Xcel Energy does not profit from the sale of the natural gas commodity. 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. If approved, the new price would take effect March 1, 2006.

The projected natural gas prices for March 2006 are lower than the forecast used for February 2006. The weather, both nationally and locally, has been warmer than normal, reducing winter natural gas loads.

The weather also has allowed storage inventories to reach historically high levels for this time of year. The U.S. Energy Information Administration reported that for the week ending Feb. 3, 2006, there was 2.368 trillion cubic feet of natural gas in storage; this is 437 billion cubic feet above last year’s levels for the same time period and 649 billion cubic feet above the five-year average. In addition, crude oil prices are at $62.65 per barrel, down from last month’s price of about $64 per barrel.  

In March 2005, typical residential customer bills were $84.75, or $11.22 lower than projected for next month, based on the same consumption of 103.1 therms. Typical small-business customer bills were $384.51, or $62.89 lower than projected for next month, also based on the same use of 503.5 therms.

Xcel Energy encourages customers to explore ways to conserve energy and lower their natural gas bills by visiting 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 Web site.

Customers may also wish to seek low-income energy assistance and information on energy efficiency programs by contacting the federal Low-Income Energy Assistance Program (LEAP), which started Nov. 1, or Energy Outreach Colorado (EOC). They may call 1-866-HEAT HELP (1-866-432-8435) for further information.