Customers of Xcel Energy may get a break on their winter heating bills this year.
Xcel forecasts that lower natural-gas prices will result in heating bills that could be 13 percent to 14 percent lower this winter than last year.
Although the utility noted that its winter forecast could be changed by a number of factors, it now expects the average December residential heating bill to be $135, compared with $157 in December 2005. Those estimates don’t include costs for electricity.
Typical small-business owners are expected to pay $622 for their December heat, compared with $713 the previous year.
Natural-gas prices hit a two-year low last week, largely because of high inventories of gas in storage and tepid demand from gas-fired power plants now that summer air-conditioning use is dropping off.
Gas for October delivery closed Friday at $4.98 per million British thermal units on the New York Mercantile Exchange. The price fell to $4.65 earlier in the day, the lowest since Sept. 16, 2004.
Xcel also said that typical October residential gas bills will be $39 compared with $67 in October 2005.
The average small-business October gas bill will be $156 compared with $276 a year ago.
Xcel does not profit or lose money on changes in natural-gas prices. Changes are passed through to consumers dollar- for-dollar. Xcel makes money from delivering gas to customers, regardless of the cost of the gas.
Staff writer Steve Raabe can be reached at 303-954-1948 or sraabe@denverpost.com.
