Xcel Energy has requested a $27.5 million increase in natural gas rates in Colorado to recover pipeline operating and maintenance costs, the company said today.
If approved by regulators, average residential natural gas bills will increase by $1.83 a month, or 3.4 percent. The average small-business customer would see a jump of $6.90 a month, or 3.23 percent.
The new rate would take effect August 2011.
Xcel said it is seeking to recoup costs associated with testing and maintaining its pipeline system as well as other expenses that have increased since rates were last set in 2006.
“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 is also proposing to add a new charge to consumer bills to pay for improvements connected to certain federal safety and reliability regulations on the company’s natural gas and transmission distribution system in Colorado. If approved, the new fee would take effect Jan. 1, 2012.
The company didn’t immediately have estimates on the amount of the charge today.
Andy Vuong: 303-954-1209, avuong@denverpost.com or
