With demand dropping as spring arrives, Xcel Energy has lowered
the commodity price for natural gas.
Combined with falling demand, most customers could see a
decrease of 38 percent compared to April, and 45 percent decrease
compared to May 2008.
The commodity price itself will drop 10 percent, if the Public
Utilities Commission accepts the utility’s proposed cost.
Xcel advisers look at the amount of natural gas in storage, as
measured by the Energy Information Administration, as well as
changes in price for the company itself, said Mark Stutz, spokesman
for Xcel.
Xcel by law is revenue neutral when it come to the main raw
materials for electricity which are coal and natural gas.
In May 2008, typical residential bills were $42.03, about $16
more than expected for next month.
The Public Utilities Commission started a hearing on a second
electric increase in as many months April 20.
If that proposal goes forward, electric base rates could jump
$4.50 per month starting in May.
