News Releases

Xcel Energy proposes new quarterly electricity, monthly natural gas rates

DENVER - Higher fuel costs, primarily associated with natural gas markets regionally and nationwide, will result in higher electricity bills for Xcel Energy customers in Colorado through September, and higher natural gas bills next month when compared to a year ago.

In required regulatory filings this week, Xcel Energy said today that electricity bills would increase by approximately 10 percent for residential and small-business customers for the next quarter, when compared to bills this quarter.

Natural gas bills will be up by an estimated 38 percent for residential customers and 58 percent for small-business customers next month when compared to July 2007. Natural gas use is low this time of year, however, and bills will be 15-24 percent lower in July when compared to this month.

If approved by the Colorado Public Utilities Commission (CPUC), the new rates would become effective for both filings on July 1, 2008.

Electricity Commodity Adjustment

The Electric Commodity Adjustment (ECA) rider is filed each quarter with the CPUC, to reflect increases or decreases associated with the cost of generation fuel and purchased energy. The new ECA rate, if approved, for residential and small-business customers would be $0.04942 per kilowatt-hour for July through September, up from $0.03849 per kilowatt-hour this quarter.

Typical residential customer bills would increase to $73.89 a month, based on use of 625 kilowatt-hours, an increase of $6.63 from the current cost of $67.26. Small-business customer bills would increase to $119.57 per month, based on use of 1,025 kilowatt-hours; this is an increase of $10.90 from the current cost of $108.67 a month.

All costs associated with increases or decreases in fuel costs are passed along to customers through the ECA on a dollar-per-dollar basis. Xcel Energy does not profit from increases in these fuel costs.

Monthly Gas Cost Adjustment

Xcel Energy natural gas customers in Colorado would see lower July 2008 bills than those projected for June 2008, due to decreases in both price and consumption. As previously noted, however, bills would be higher when compared to July 2007.
 
Xcel Energy’s proposed monthly natural gas commodity price proposed to the CPUC for residential and small-business customers would decrease by 14 percent to $0.8021 per therm in July 2008, down from $0.9309 per therm this month. The July 2007 price was $0.3706 per therm.

Typical residential customers are expected to decrease consumption by 25 percent in July, when compared to this month. Overall bills would decrease by 24 percent to $28.23, based on projected use of 17.9 therms. This compares to bills of $37.02 this month, on projected use of 23.9 therms.

The typical July 2007 residential customer bill was $20.50, or $7.73 lower than projected for next month, adjusted for the average current use of 17.9 therms.

Typical small-business customers are expected to use 7 percent less natural gas in July compared to this month. They would see a bill decrease of 15 percent from this month to $124.91, based on projected use of 105.7 therms. Bills this month were projected to be $147.31, on use of 113.7 therms.

The typical July 2007 small-business customer bill was $79.26, or $45.65 lower than projected for next month, adjusted for the average current use of 105.7 therms.

The change proposed today reflects anticipated natural gas prices, and impact on customer bills, only for the month of July 2008.

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.

Market Conditions

Although New York Mercantile Exchange (NYMEX) prices are significantly higher than last month, projected local natural gas costs for July 2008 are lower than the June 2008 prices, because supplies in the Rockies appear to be in close balance with the takeaway capacity out of the region.
 
Low natural gas storage levels and continued strength in the crude oil markets are driving the increase in NYMEX pricing. The Energy Information Administration reported that, for the week ending May 30, 2008, there was 1.808 trillion cubic feet of natural gas in storage. This amount is 326 billion cubic feet below last year’s level and one billion cubic feet below the five-year average for the same time period.
 
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.