Natural gas usage has declined 2.6 percent annually over the past five years in Colorado, and a new state law is designed to get even more reduction.
Gas prices, which have spiked as high as $15 per thousand cubic feet, are one reason for cutbacks by consumers.
But the state wants more, using “demand-side” conservation programs for gas that are similar to ones in place for electricity.
“Our ultimate goal is to see customers use less energy because of all of the benefits,” said Mark Stutz, a spokesman for Xcel Energy, the state’s largest utility.
The state Public Utilities Commission is charged with developing the rules for an energy efficiency program. It is taking public comments until Aug. 1.
The law mandates that Colorado utilities expand their energy conservation programs, which could include efforts such as subsidizing more efficient windows in businesses and residences.
Such programs are usually funded by an additional surcharge on all consumers’ bills, but experts expect the programs to save consumers money in the long run.
The fixed surcharge could appear on the bill under a demand-side management program charge.
Xcel charged about 0.06 cents per kilowatt hour for its elec tricity efficiency-encouragement programs on one bill.
“Pretty much everyone benefits. The only ones who don’t are those who pay for the programs and then don’t (use subsidized programs),” said Steve Nadel, executive director of the American Council for an Energy-Efficient Economy, a Washington-based public policy group.
Beyond a possible surcharge to fund the programs, the PUC approved in June a program that allows Xcel to add a separate surcharge to all bills if total gas usage drops significantly. The surcharge would recoup any loss in revenue beyond a 1.3 percent drop from the previous year.
“You can’t create a disincentive for the utility (to encourage conservation) because at the end of the day we have shareholders we have to answer to,” said Stutz.
The Southwest Energy Efficiency Project, based in Boulder, supports recouping lost revenue for decreased usage and the new energy efficiency programs, said Steve Dunn, senior associate for SWEEP.
Xcel’s electric demand-side program offers “energy audits,” in which the company analyzes how efficient buildings are and makes suggestions for improvement. Xcel also has a program in which it automatically cycles air conditioning units on and off on hot days with extremely high usage in exchange for a price break to homeowners.
Minneapolis-based Xcel is Colorado’s largest utility, with 1.3 million electric and 1.2 million gas customers.
Staff writer Zach Fox can be reached at 303-954-1755 or at zfox@denverpost.com.
