Xcel Energy Announces Details of Its Natural Gas Rate Case Settlement

Xcel Energy has entered into an agreement today on its proposed natural gas base rate case. Under the terms of the comprehensive settlement, Xcel Energy will increase its base natural gas rates by $22.5 million on an annual basis. This increase is about $12 million less than Xcel Energy originally requested last May.

Though the agreed upon settlement was filed today with the Colorado Public Utilities Commission (CPUC), the Commission must still approve the settlement with several intervenors. Hearings are scheduled for January 3 and 4, and the rate change will become effective in early February. The intervenors included: the CPUC Staff, the Office of Consumer Counsel, Energy Outreach Colorado, AARP, Atmos Energy, Seminole Energy, and Climax Molybdenum Company.

The settlement means that residential customers will see an overall increase in their monthly bills of about $0.73. Their fixed metering and billing amount of $8.54 will increase to $10.12. In addition, residential customers currently are charged $0.0928 for delivery of each therm of natural gas that passes through the meter. This will decrease to $0.08052, and the adjustment will allow the company to recover its investment in more than $1 billion of natural gas infrastructure in Colorado on a consistent basis.

Commercial customers will see an overall monthly bill increase of about $8.13. Their fixed metering and billing amount of $15.38 will increase to $20.23 per month. Currently, they are charged $0.08708 for delivery of each therm, which will be increased to $0.09666.

“By settling this case, we believe we are reaching a compromise that will allow us to continue to recover our investment in Colorado facilities on a more consistent basis. While raising the metering and billing charges to our customers is always difficult, particularly when natural gas commodity rates are so high, these changes are necessary to recover our large fixed investments in Colorado,” said Fred Stoffel, vice president for Policy Development.

The settlement also lowers Xcel Energy’s authorized rate of return on equity on its natural gas business from 11 percent to 10.50 percent.

Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural gas company with operations in 10 Western and Midwestern states. The company 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. Xcel Energy headquarters are located in Minneapolis. More information is available at xcelenergy.com