Xcel Energy Proposes August Natural Gas Prices
Xcel Energy today proposed an increase in August 2005 natural gas commodity prices. Coupled with a slight increase in use for residential customers but a slight decrease in use for small-business customers, projected bills would increase next month by 9 percent for typical residential customers and by 7 percent for typical small-business customers.
The natural gas commodity price proposed to the Colorado Public Utilities Commission for residential and small-business customers would increase by 13 percent in August to $0.7266 per therm, from $0.6414 per therm in July.
Typical residential customers are expected to increase consumption by 4 percent in August, so their overall bill would increase to $23.74, based on consumption of 17.1 therms. This compares to $21.80 this month on use of 16.5 therms.
Typical small-business customers are expected to use 2 percent less natural gas in August. Typical bills would be $111.81, based on consumption of 109.3 therms, compared to bills this month of $104.02 on use of 111.2 therms.
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 prices would take effect Aug. 1.
In August 2004, typical residential bills were $19.89, or $3.85 lower than projected for next month, based on the same consumption of 17.1 therms. Typical small-business customer bills were $88.50 in July 2004, or $24.99 lower than projected for next month, also based on the same use of 109.3 therms.
Projected natural gas prices for August 2005 are higher than July 2005. In addition to the continued tight balance between natural gas supply and demand, weather also has provided an upward push to prices, as tropical storm activity has been unusually strong early in the season and has caused some reductions in natural gas production in the Gulf Coast area. Warmer temperatures have increased natural gas requirements for electric generation. Crude oil prices, at about $60.50 per barrel compared to $54 per barrel a month ago, have also put upward pressure on natural gas prices.
On the other hand, national gas storage statistics continue to be strong, with injection volumes maintaining a surplus in inventory compared to last year.
Xcel Energy encourages customers to explore ways to conserve energy and lower their natural gas bills by accessing related information on the Web at xcelenergy.com or by calling 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 by contacting 866-HEAT HELP (866-432-8435).