Xcel Energy asks for another rate hike for natural gas customers in Colorado
Natural gas prices could see an increase in their bill next year. Earlier this week, Xcel Energy submitted a natural gas rate increase proposal to the Colorado Public Utilities Commission. The proposal asks the commission to defer any approved increase until February 2025.
That is when the increase for Winter Storm Uri is no longer in effect.
Under the proposal, Xcel said a typical residential customer's bill would increase by 7.4% compared to current rates.
"Profound transformation is underway in the energy industry, and we're committed to balancing the needs of our natural gas customers now, with the vision of creating a net-zero system by 2050," said Robert Kenney, president of Xcel Energy—Colorado in a statement. "System safety, reliability, and resiliency are paramount as we keep pace with technological advancements, extreme weather, climate commitments, and public policy changes. We know what our customers, communities and other stakeholders want for the future and we are finding solutions that secure a safe system while driving down greenhouse gas emissions."
Xcel said the proposed increase reflects investments in the gas system as well as the increased cost of operating the natural gas system since 2021. Those include:
· Ongoing proactive pipeline safety initiatives, integrity programs and damage prevention programs.
· Replacing and upgrading natural gas pipelines to reduce the risk of leaks and blowing gas.
· Using state-of-the-art tools to inspect pipelines.
· Reinforcing the system to build reliability and resiliency in communities across the state.
The Xcel proposal also comes as there have already been growing concerns for customers about rising energy costs in recent years.
"I think the cost of everything has definitely increased. But more importantly, we have seen a rise in heating costs for households throughout the years," said Vanessa Pena, the LEAP Program Coordinator at the State of Colorado Department of Human Services.
Pena works for LEAP, a low-energy income assistance program. The program helps people pay for part of their heating bills during the winter from November to April.
While Pena couldn't comment on Xcel's proposal, she said the current economic times are already a large burden for clients trying to pay their utilities.
"It's one of those things where the client has to make a decision on whether they want to pay for their heating costs or other things such as food or medicine," said Pena, who also mentioned everyone has been impacted, from single households to families to the elderly.
Pena added they've already seen a 10% increase year-over-year in people applying for assistance. Plus, they've received 3,000 more applications this year from the same time last year, and they expect those numbers to continue to rise in the future.
Pena said they will continue to work to get applications processed in a timely manner and keep their call center open 24/7.
Meanwhile, Bill Levis, the lead volunteer with AARP, said he's concerned about Xcel's proposal. He said this proposal is frustrating and concerning for people on a fixed income. He also said the people who are impacted the most are the people who can't afford it.
"Xcel Energy in Colorado has hiked utility bills for residential electric and gas customers year after year, filing one rate case after another — a practice called 'pancaking' that stacks costs onto customers," Levis explained.
Additionally, Levis said utility payments are typically between 10% to 30% of a person's net fixed income, which makes it even more difficult for many.
"Customers rates continue to go up, and Xcel has no incentive to keep the rates low, and that's the biggest problem from a consumer standpoint. If you're a monopoly, consumers can't go anywhere else," the AARP spokesperson said. "Every year, Xcel files another case, and they never get penalized."
