Colorado will see increase in electric and natural gas bills

NEWS RELEASE
XCEL ENERGY
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Colorado has submitted its regular quarterly fuel price adjustments to the Colorado Public Utilities Commission. Customers of Xcel Energy—Colorado will see their electric and natural gas bills increase in the fourth quarter of 2021 due to higher natural gas market prices. Gas commodity costs are market-based prices, and Xcel Energy does not profit from an increase in prices in the natural gas market.

The market price for natural gas is rising substantially for several reasons:

• The amount of gas in storage in the United States currently lags five-year averages because demand is outpacing supply as economic recovery from the pandemic continues. Storage supplies are currently 20% below historical averages.
• Natural gas exports have increased; and
• Most off-shore gas production and on-shore gas processing facilities were damaged by Hurricane Ida.

Natural gas prices affect customer electricity costs because natural gas is used as a fuel in some electric generating facilities. Xcel Energy’s electric generation portfolio is well diversified with wind, solar and other resources. Natural gas costs are expected to make up only 15% of electric commodity costs in the fourth quarter. Xcel Energy also has underground gas storage and has bought financial hedges to help protect customer from further increases in the cost of natural gas.

For electric customers under the proposed quarterly Electric Commodity Adjustment for the fourth quarter, residential customers are expected to see a $1.91 increase per month while small businesses would pay approximately $2.96 more on a typical monthly bill compared to the third quarter of 2021.

Under the quarterly Gas Cost Adjustment, residential natural gas customers are expected to pay an average of $11.22 more on their typical monthly bill next quarter as compared to the third quarter of 2021. Small businesses will see an average monthly increase of $48.50, as compared to the third quarter of 2021. It is typical to see customer gas prices increase in the fourth quarter as customers begin to use more natural gas for heating.

With minor exceptions, costs associated with increases or decreases through these electric and natural gas adjustments are passed along to customers on a dollar-per-dollar basis. If approved by the CPUC, new rates would go into effect on October 1, 2021 and would remain in effect for three months.

If customers have difficulty paying their bills, Xcel Energy is here to help. Customers are encouraged to contact Xcel Energy to set up payment arrangements or learn about other assistance that may be available. Call 1-800-895-4999 or visit Xcel Energy’s Energy Assistance page at xcelenergy.com.

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