|
News Releases
04/17/2008
Xcel Energy proposes May 2008 natural gas price
DENVER - Xcel Energy natural gas customers in Colorado would see significantly lower May 2008 bills than those projected for April 2008, due to a continued decrease in consumption. Bills would be higher because of increased prices, however, when compared to May 2007, the company announced today.
Xcel Energy’s proposed monthly natural gas commodity price proposed to the Colorado Public Utilities Commission for residential and small-business customers would increase by 16 percent to $0.8452 per therm in May 2008, up from $0.7295 per therm this month. The May 2007 price was $0.5711 per therm.
Typical residential customers are expected to decrease consumption by
51 percent in May, when compared to this month. Overall bills would decrease by 38 percent to $44.62, based on projected use of 33.6 therms. This compares to bills of $72.04 this month, on projected use of 69.2 therms.
The typical May 2007 residential customer bill was $34.05, or $10.57 lower than projected for next month, adjusted for the average current use of 33.6 therms.
Typical small-business customers are expected to use 39 percent less natural gas in May 2007 compared to this month. They would see a bill decrease of 29 percent from this month to $206.24, based on projected use of 181.5 therms. Bills this month were projected to be $289.87, on use of 298.1 therms.
The typical May 2007 small-business customer bill was $152.44, or $53.80 lower than projected for next month, adjusted for the average current use of 181.5 therms.
The change proposed today reflects anticipated natural gas prices, and impact on customer bills, only for the month of May 2008. If approved, the new commodity price would take effect May 1.
Xcel Energy does not profit from the sale of the natural gas commodity to its customers. 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.
Projected natural gas costs for May 2008 are higher than the forecast used for April 2008, due in part to temperatures that continue to be below-normal across much of the U.S. Natural gas storage inventories also remain lower than those reported for last year.
The Energy Information Administration reported that, for the week ending April 4, there was 1.234 trillion cubic feet of natural gas in storage. This amount is 351 billion cubic feet below last year’s level, and 23 billion cubic feet below the five-year average for the same time.
In addition, record setting oil prices have also been attributed as some of the cause of the higher gas prices for May. As has been the pattern in recent months, Rocky Mountain area supplies are still priced below the May NYMEX prices.
Xcel Energy encourages customers to explore ways to conserve energy and lower their natural gas bills by visiting www.xcelenergy.com/energy savings 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 at www.xcelenergy.com/businessenergyguide.
|
