Xcel Energy will seek $22.5 million a year to recoup extra costs associated with maintaining and expanding its natural-gas delivery system, according to a settlement the company filed Tuesday with the Colorado Public Utilities Commission.
The request, if approved, would end up costing household users of natural gas in the state about 73 cents more a month on average.
Xcel had initially sought $34.5 million from ratepayers in May but agreed to lower that amount, in part by lowering the expected return on its natural-gas system from 11 percent to 10.5 percent a year.
The settlement agreement was forged by Xcel and the PUC staff, the Office of Consumer Counsel, Energy Outreach Colorado, AARP, Atmos Energy, Seminole Energy and Climax Molybdenum Co.
“What we are asking is to switch more of the charge from the variable cost to the fixed metering and billing cost,” said Xcel spokesman Tom Henley.
Consumers, faced with higher natural-gas prices, are using less of the commodity. Developers also aren’t covering the full cost of adding new homes to the natural-gas grid.
Xcel argues it hasn’t recouped the added costs it has faced since 2000.
The fixed metering and billing charge for residential customers will increase to $10.12 a month from the current $8.54. The residential delivery charge for each therm of natural gas delivered will decrease from 9.3 cents a therm to 8.05 cents a therm.
Commercial customers will see their monthly bills increase an average of $8.13. Their fixed metering and billing amount of $15.38 will increase to $20.23 per month, and the therm delivery charge will rise from 8.7 cents to 9.7 cents.
“They didn’t get everything they wanted, and we didn’t get everything we wanted,” said Jim Greenwood, director of the Office of Consumer Counsel.
But he said the increases were minimal and that Xcel has made the case to justify them. The settlement also places a lower burden on residential users, who initially faced paying $2 more a month on average.
“We are supporting the settlement agreement as it is written without modification,” Greenwood said.
The PUC will hold hearings on the settlement Jan. 3 and 4. If approved, the new rates will take effect in February.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
