Xcel Energy is closer to getting a decision on its proposal to increase its natural gas rates by $108 million for Colorado customers over three years.
Xcel wants to increase rates to pay for upgrades to its transmission and distribution pipelines. The Minneapolis-based company, which has more than 1 million natural gas customers in Colorado, filed a rate request with the state Public Utilities Commission in March.
A hearing on the proposal with an administrative law judge and the Public Utilities Commission wrapped up Tuesday. Closing statements must to be submitted by Sept. 14, and the judge will make a recommendation to the commission Oct. 8.
Xcel originally had sought a $109.1 million increase and held meetings for public comment in June in Grand Junction, Pueblo and Denver.
The company’s revised proposal would result in the average customer’s bill increasing by more than 9.6 percent over three years to $56.38 per month.
Yearly increases would be in the range of 2.75 percent to 3.48 percent.
Xcel aims to upgrade its existing pipelines and replace 275 miles of pipe by 2017. Xcel’s plan also includes programs to more quickly conduct repairs and reduce damages by other entities, said Mark Stutz, an Xcel spokesman.
Xcel operates more than 2,100 miles of transmission-grade pipeline in Colorado and more than 21,600 miles of distribution-grade pipeline.
In March, the company said it has replaced 198 miles of pipe, including all the cast-iron pipes in its system and most of the bare-steel pipes. It still must replace PVC and cellulose-based pipes.
Under the proposal, the average monthly residential bill, for 64 therms of gas, would rise $1.79 in 2015, $1.68 in 2016 and $1.51 in 2017.
The commercial rate would rise 9.5 percent over three years to $230.15 per month for 275 therms of gas.
Alicia Wallace: 303-954-1939, awallace@denverpost.com or
