Xcel says rates to drop when peak season over
The end of Xcel Energy’s heightened tiered rates of summertime and an expected decrease in energy costs should spell relief for customers’ pocketbooks this fall.
The utility announced Wednesday that Colorado residential customers should see electric bills drop 12.6 percent on average in the fourth quarter, from $71.41 a month last year to $62.44 this year.
Small business customers would see a 5.1 percent decline from $107.98 a month to $102.50.
The proposed change will take effect Oct. 1, assuming it’s approved by the state Public Utilities Commission.
Xcel instituted a two-tiered rate program for the first time this summer to account for the increased cost to the company to provide energy service during the summer. Customers who used more than 500 kilowatt hours were charged more than other customers.
Xcel also announced natural gas bills will drop during the next three months. A typical residential bill will fall 4 percent from last year to $71.68 a month. A typical small-business customer’s bill will drop 5 percent from last year to $290.91 a month.