Xcel Energy requested Friday a $27.5 million increase in natural- gas rates in Colorado to recover pipeline operating and maintenance costs.
If approved by regulators, average residential natural-gas bills will increase by $1.83 a month, or 3.4 percent, to $55.34. Average small-business bills would go up $6.90 a month, or 3.2 percent, to $220.43.
The new rate would take effect in August 2011.
Xcel said it is seeking to recoup costs associated with testing, maintaining and repairing its natural- gas pipeline system as well as other expenses that have increased since rates were last set in 2006.
Those costs include programs to replace more than 680 miles of cast-iron, bare or black steel, and polyvinyl chloride pipes in Xcel’s Denver-area system and the majority of an 80-mile West Main pipeline that serves Fort Collins, Loveland, Longmont and Boulder. The company also will replace 8 miles of natural-gas transmission pipe from Edwards to Minturn.
“We have worked hard to manage our costs and address reliability, but we have reached a point where we need to look at additional improvements and related investments in our Colorado natural-gas infrastructure,” said David Eves, chief executive of Xcel’s Public Service Co. of Colorado.
Xcel has also proposed adding a new charge to consumer bills to help pay for improvements to the company’s natural-gas and transmission distribution system to meet certain federal safety and reliability regulations. If approved, the new fee would take effect Jan. 1, 2012.
The amount of the fee is based on whether Xcel invests more than the $23 million it is currently targeting for such improvements.
Xcel’s last natural-gas rate case was filed in December 2006, with that rate increase taking effect in July 2007.
Xcel is Colorado’s largest electric and natural-gas utility, with nearly 1.4 million customers.
Andy Vuong: 303-954-1209, avuong@denverpost.com or .
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$1.83 How much more per month you would pay
