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Xcel Energy files for electricity price decreases in Colorado

DENVER - Xcel Energy today requested a $51.6 million decrease in electricity prices for its Colorado customers, to reflect downward adjustments in costs associated with the purchase of electricity and generation fuel, and for costs associated with air quality improvements.

If approved by the Colorado Public Utilities Commission, the two annually required filings would decrease typical residential customer bills by 2.4 percent, or $1.27 a month, based on average monthly use of 625 kilowatt hours. Small business customer bills would decrease by 2.6 percent, or $2.57 a month, based on average monthly use of 1,265 kilowatt hours.

The first filing is the result of the company’s June 2003 rate case settlement. It calls for Xcel Energy to file an annual electricity cost adjustment, known as the Electric Commodity Adjustment (ECA), to reflect the company’s costs for purchasing electricity from other utilities or independent power producers, and for purchasing generation fuel, including coal and natural gas.

The second annual filing reflects a minor downward adjustment to the Air Quality Improvement Rider (AQIR), found on customer bills. The AQIR is a previously approved monthly charge to customer bills to pay for costs associated with reducing sulfur dioxide and nitrogen oxide emissions from Denver metropolitan area power plants. It resulted from legislation approved in Colorado in 1998.

“While the overall decrease is modest, it certainly is good news from the standpoint that we are anticipating stable electricity prices at a time when we continue to see volatility in the marketplace for home-heating fuel,” said Cynthia Evans, Xcel Energy state vice president for Colorado. “We continue to look for ways to manage those costs we can control, in an effort to provide for the lowest energy bills possible.”

If approved by the CPUC, the price decreases would go into effect Jan. 1, 2004.

On customer bills, the ECA would replace an existing rider known as the Interim Adjustment Clause, or IAC, which has been in place since January 2003. The AQIR also has appeared on customer bills since January 2003.

Xcel Energy provides multiple options for managing customer bills. Customers can visit the company on the web at www.xcelenergy.com or call us toll-free at 1-800-895-4999 to get more information. Xcel Energy also has a residential brochure, “60 Simple Ways to Save Money on Your Energy Bill,” both in English and Spanish, and the “Business Guide to Energy Savings” for small-business customers. More information about where to go for help, how to donate and what you can do to lower your energy bill also can be found by calling toll-free 1-866-HEAT-HELP (1-866-432-8435) or at www.heathelp.org.

Xcel Energy 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 3.2 million electricity customers and 1.7 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.