Xcel Energy has advised its customers to consider conserving energy as cold weather across much of the United States is causing a short-term increase in wholesale natural gas prices. The company stated that it passes along the wholesale cost of natural gas to customers without making a profit and expects the impact on customer bills over the next few days to be minimal, adding less than a dollar per month to the average residential bill over the coming year.
The company noted that while steps have been taken to mitigate higher natural gas prices, customers may still want to conserve energy during this period. Xcel Energy purchases natural gas both for direct delivery to customers and for electricity generation. The current price increase is attributed to cold weather affecting both production and demand for natural gas but is significantly smaller than the spike seen during Winter Storm Uri several years ago.
According to Xcel Energy, its efforts to keep costs low have resulted in natural gas rates that are among the lowest in the country, remaining 27% below the national average since 2015. Over the past decade, average natural gas bills have been about 18% lower than national and state averages. This winter, bills have also been lower compared to last year due to milder weather conditions.
Customers are encouraged to take steps such as lowering thermostats by a few degrees if they use a natural gas furnace, using programmable thermostats, keeping exterior doors closed, running ceiling fans clockwise during colder months, minimizing oven door openings while cooking, lowering or insulating water heater temperatures, changing furnace filters monthly, sealing windows and checking for drafts, and improving home insulation. More tips can be found on Xcel Energy’s Energy Saving Tips page at xcelenergy.com.
While increases primarily affect natural gas customers’ bills, electric customers may also benefit from conservation since some electricity is generated using natural gas. The company uses various strategies such as purchasing and storing part of its expected winter supply ahead of time and relying on diverse electricity sources to help minimize price impacts.
Xcel Energy offers payment plans and assistance programs for those facing difficulty paying their energy bills. Customers can learn more about these options at xcelenergy.com/EnergyAssistance or by calling 1-800-895-4999. There is also an Averaged Monthly Payment program available for more predictable billing.
As a safety reminder, Xcel Energy advises anyone who detects a sulfur or rotten egg smell—which could indicate a gas leak—to leave immediately without operating electrical devices or phones inside and call Xcel Energy at 1-800-895-2999 once outside. In emergencies, call 911.
“Xcel Energy passes along the wholesale cost of natural gas to its customers, and it does not make a profit on it. Customer bill impacts from the higher natural gas prices over the next few days are not expected to be significant and will add less than a dollar per month to the average residential customer’s bill over the coming year.”
“While we have taken steps to mitigate the impacts to customer bills from the higher natural gas prices, customers may want to consider conserving energy for the next few days.”
“Xcel Energy works hard to keep costs low for customers, leading to natural gas rates that are among the lowest in the nation, remaining 27% below the national average since 2015. Average natural gas bills that have been about 18% below the national and state averages over the last decade. Customers’ natural gas bills so far this winter have been lower than last winter, with the milder weather.”
“Xcel Energy takes many steps to minimize the impact of natural gas price fluctuations on customer bills, including purchasing and storing a portion of its expected natural gas needs for the winter heating season before winter, when prices are lower. For the company’s electric service, it uses a broad range of electricity sources to help minimize the effect of natural gas price increases on electric bills.”
“Xcel Energy will always work with customers to provide options such as payment plans and assistance programs to get them through difficult times. If you’re facing challenges paying your energy bills, you are encouraged to contact Xcel Energy to set up a payment arrangement or learn more about assistance options that may be available.”
“As an important safety reminder, if customers ever detect a sulfur or rotten egg smell inside or near their home, it could be the odorant that Xcel Energy puts in natural gas to help detect leaks. If they notice that smell, customers should leave home immediately and should not turn any electrical devices on or off, use a garage door opener, or use any phone until they are outside and away. Once outside, they should call Xcel Energy at 1-800-895-2999. In a life-threatening emergency, call 911.”
For additional information about saving energy or assistance programs offered by Xcel Energy visit xcelenergy.com.
