Xcel Energy Colorado has asked the Colorado Public Utilities Commission to pass on certain significant increases in natural gas costs, as well as higher electricity costs, to its customers in the third quarter.
Each quarter, in a summary request, Xcel Energy asks the PUC to pass on its cost of purchasing natural gas and electricity. And as is the case with so many articles this year, these products are on the rise.
âThis change is due to the increase in natural gas prices as well as the increase in the cost of purchasing electricity by contract. Xcel Energy does not benefit from an increase in natural gas or electricity prices, âthe company said in a statement.
Natural gas costs on the average residential bill are expected to rise from $ 23.68 per month in the second quarter to $ 25.01 per month in the third quarter, an increase of $ 1.33 or 5.6%. Compared to the third quarter of 2020, residential customers can expect to pay $ 4.73 or 23.3% more per month.
This in part reflects a slowdown in the decline in natural gas prices during the early months of the pandemic, when demand was depressed. But it also reflects a reduction in drilling activity and a decline in domestic production.
On the electricity side, residential customers can expect average costs of $ 76.72 in the third quarter, an increase of $ 2.17 per month or 2.9% from the second quarter. Compared to the third quarter of 2020, residential users face a 7.7% increase in their electricity costs on average.
The fuel price adjustments will go into effect on July 1 and last for three months if approved by the PUC, which is almost always the case.
Consumer inflation on the Denver subway hit an annual rate of 3.2% in May, according to the United States Bureau of Labor Statistics. Higher transportation costs largely contributed to this increase, with gasoline prices rising 68.8%, used car prices up 28.6% and auto insurance costs up 27%. , 3%.
Household energy costs rose 3.1% more modestly, but this rate of increase is expected to accelerate in the coming months as utilities take on rising commodity costs.