DENVER — Starting Tuesday, Xcel Energy customers will see higher natural gas bills, an increase tied to a settlement approved by the Colorado Public Utilities Commission.
Xcel Energy said the increased rates will help keep its natural gas system safe and reliable while also supporting the state’s clean energy goals.
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Residential customers will now be paying $5.16 more a month, an increase of 8.6%.
For the average small business, monthly rates will increase by $22.76, an increase of 9.2%.
“It kind of becomes that what's the straw that breaks the camel's back, and basic infrastructure is not where that should come from. Increasing the keep the doors open expenses for small businesses is just a killer of the entrepreneur spirit, and they need to find other ways to fund that,” Boulder resident Joe Schroeter said.
Xcel Energy told Denver7 the higher rates will help with ongoing inspection, maintenance and replacement of aging infrastructure, investments to enhance system safety and modernization efforts that help the utility provide a reliable natural gas service.
- 17,000 leaks eliminated, meaning less methane emissions
- 590 miles of transmission pipeline inspected
- 287 transmission pipeline repairs
- 40 miles of high-risk distribution pipeline removed
- 1,400 high-risk service lines removed
- 25 regulator stations and gas facilities overhauled
- 12 vaults (enclosures that provide protected access to underground gas distribution equipment) and valve sets rebuilt
But the CPUC did not give Xcel everything it asked for.
Xcel initially requested a $190 million revenue increase, but the commission approved a settlement that brought it down to around $123 million, cutting the request by more than a third.
“The outcome reflects a negotiated settlement that balanced customer affordability, system reliability, safety and policy objectives among a broad group of stakeholders,” an Xcel spokesperson said.
Denver7 spoke with longtime Xcel Energy customers about this new increase.
“There is a reality of infrastructure issues here in Colorado, which is something that gets mentioned a lot. I think that Xcel comes back to it again and again, almost like it should be an automatic way to increase rates. I think that wears thin after a while and I think that we do need to do a better job of long-term planning for infrastructure,” Boulder Schroeter said.
As Colorado moves toward cleaner energy, Xcel said natural gas will continue to be part of the state’s energy mix, with customers still able to choose natural gas.
“Through our Clean Heat and Gas Infrastructure Plans, we are modernizing the natural gas system and pursuing emissions reductions while maintaining reliability and customer choice,” the utility said.
The company said it’s also following an “electrification first” approach, supporting electric options where they make sense, while continuing to invest in the gas system.
“Xcel Energy continues to see an increase new customers opting to use natural gas service. To support the new and existing customers that depend on natural gas for their safety and comfort, we must continue to invest in the integrity of the system,” an Xcel spokesperson told Denver7.
For customers already struggling to keep up with their bills, the settlement also includes more help. The commission approved $5 million in Xcel funding for bill assistance, including credits for qualifying customers.
Xcel also offers payment plans and other energy assistance programs.
“We also work closely with organizations that administer bill-payment assistance programs, including the Low-income Energy Assistance Program (LEAP),” Xcel said.
The utility said customers who are having difficulty paying their bills should contact them as soon as possible so they can help identify the assistance options that best meet their needs.
“Xcel Energy remains committed to making investments that support safety, reliability and customer service while balancing affordability concerns and meeting the energy needs of customers across Colorado,” Xcel concluded.
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