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Xcel Energy Announces a $162 Million Electricity Rate Reduction in Colorado

Posted on: Thursday, 1 December 2005, 21:00 CST

Net Change Reflects a Decrease in Natural Gas Prices and the Addition of an Amendment 37 Line Item Charge to Customer Bills

Xcel Energy announced today it has filed for a $162 million net decrease in electricity rates with the Colorado Public Utilities Commission (CPUC). The Electric Commodity Adjustment (ECA) rate affected here is designed to recover generation fuel and purchased-energy costs. The company has also filed the Renewable Energy Standard Adjustment (RESA) as a result of the voter-approved Amendment 37 initiative to fund expansion of the company's renewable energy programs.

If approved by the CPUC, typical residential electric customer bills, including the RESA charge, would decrease by $3.71 per month or 6 percent, based on average use of 625 kilowatt-hours. Typical small business electric customer bills, including the RESA charge, would decrease by $7.63 per month or 6 percent, based on average use of 1,265 kilowatt-hours. If approved, the new rates would take effect on Jan. 1, 2006.

The effect on customer bills is the combination of today's two filings and two made on Nov. 1: a 6 percent decrease in the ECA, the cost of the RESA, that reflects a 1 percent increase on a customer bills, a small decrease of less than 1 percent for the Purchased Capacity Cost Adjustment rider and a less than 1 percent decrease for most customers of the Air Quality Improvement Rider.

The filing will also affect the rate that customers pay for Windsource, a renewable energy product in Colorado. As previously stated in an amended ECA filing in October, Windsource customers who selected all of their power from the program received a credit of $4.11 a month as compared to customers who

received their power from fossil-fuel generated sources. The new ECA rate, because of decreases in the projected cost of fuel, will reduce the difference between the wind rate and the ECA rate to a credit of $0.45 per month for fully-subscribed Windsource customers.

"The cost of natural gas required to produce electricity has been swinging up and down. This filing is a rate based on what we can predict for the price of generation fuel and purchased energy costs that also takes into account certain market indicators over the coming year," said Fred Stoffel, Xcel Energy vice president for policy development.

Xcel Energy encourages its electricity and natural gas customers to seek information about various payment options. Customers may sign up for Averaged Monthly Payment and explore ways to conserve energy and lower their bills by visiting Xcel Energy at xcelenergy.com or by calling 1-800-895-4999. Residential customers also are encouraged to contact the company for a free copy of "60 Simple Ways to Save Money on Your Energy Bill" and business customers may order a free copy of the "Small Business Guide to Energy Savings" from the company's Web site.

Xcel Energy is a major U.S. electricity and natural gas company, with operations in 10 Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.3 million electricity customers and 1.8 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 xcelenergy.com

Source: Business Wire

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