Customers of Xcel Energy will see their bills go down by about 10 percent in October as the utility ends its summertime tiered rates and passes on reduced fuel prices.
The suspension of tiered rates — in which customers pay higher rates when they consume more electricity — will result in the average residential monthly bill dropping from $74.12 to $68.22, a decline of 8 percent.
The average electric bill will go down an additional $1.22 to $67, from Xcel’s passing on to consumers lower costs for fuel and purchased power.
Natural-gas bills will decline by an average of 2 percent to reflect Xcel’s lower costs of purchasing gas.
Residential gas bills, based on average year-round consumption of 96 therms per month, will fall from $71.68 to $70.19. Wintertime gas bills will be higher because gas consumption typically is more than 96 therms.
The rate changes take effect Oct. 1. Electric and gas commodity costs are adjusted quarterly, with Xcel passing on to consumers the utility’s price increases or decreases for purchased fuel and power.
Steve Raabe, The Denver Post
