DENVER (September 15, 2023) – Xcel Energy—Colorado customers can anticipate lower heating bills heading into the winter, compared to last year. With normal weather in October through December, an average residential customer’s natural gas bill is expected to be about 35% lower than in the last three months of 2022.
Comparing this October through December to last year:
- The average residential customer’s natural gas bill for the fourth quarter is expected to be about $85.62 per month, compared to $130.90 for the same three months last year, which is a decrease of about 35%
- The average small business customer’s natural gas bill for the fourth quarter is expected to be about $356.50 per month compared to $564.57 for the same three months last year, which is a decrease of about 37%.
The significant anticipated decrease in bills is related to the lower cost of wholesale natural gas compared to a year ago. Xcel Energy has submitted its proposed quarterly fuel price adjustments to the Colorado Public Utilities Commission, and those fuel costs, including the cost of wholesale natural gas, are passed directly to customers without markup. The proposed fourth quarter Gas Cost Adjustment of $4.71 per dekatherm is more than 50% lower than the $10.09 per dekatherm that was in effect on Oct. 1, 2022. Xcel Energy uses every option available to get the best prices for its customers by buying and storing energy when it is less expensive. This protects customers and locks in the lowest price available.
Even though natural gas bills are expected to be lower this winter, Xcel Energy always encourages customers to take steps to save energy and money, and to reach out if they need help with their energy bills. Customers can take advantage of the range of energy efficiency programs and saving tips the company offers to help manage their energy use and keep their bills as low as possible. Customers can find energy saving tips at xcelenergy.com/tips or learn more about energy efficiency programs and options at xcelenergy.com/programs_and_rebates.
Customers are also encouraged to contact Xcel Energy if they’re having trouble paying their bill. The company can provide customers with options such as payment plans, energy assistance programs or an Averaged Monthly Payment. Customers can learn more about Xcel Energy’s energy assistance programs at xcelenergy.com/EnergyAssistance or call 1-800-895-4999.
While natural gas commodity costs are down 50% compared to a year ago, the price of natural gas has increased heading into the fourth quarter, compared to the third quarter. Customers will see higher natural gas bills heading into winter than they did over the summer, with cooler weather and more use of natural gas for heating. The average residential customer’s natural gas bill will be about 15% higher in the fourth quarter than the third quarter and the average small business customer’s bill will be about 16.7% higher than the third quarter. This is still significantly lower than last year.
Effects on bills for electric customers
For electric customers under the proposed quarterly Electric Commodity Adjustment for the fourth quarter, residential customers are expected to see a $0.34 decrease per month, while small businesses would pay approximately $0.52 less on a typical monthly bill compared to the third quarter of 2023.
With minor exceptions, costs associated with increases or decreases of electric and natural gas commodity adjustments are passed along from Xcel Energy to customers on a dollar-per-dollar basis. If approved by the CPUC, new rates would go into effect on Oct. 1, 2023, and would remain in effect for three months.
About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on X, formerly known as Twitter, and Facebook.