Xcel Energy has informed its customers that recent cold weather across much of the United States is leading to a short-term increase in wholesale natural gas prices. The company, which passes along these costs without profit, stated that the impact on customer bills will be minimal, with an expected increase of less than one dollar per month for the average residential customer over the coming year.
The rise in wholesale prices is attributed to higher demand and production challenges caused by widespread cold temperatures. However, Xcel Energy noted that this price increase is much smaller than what was experienced during Winter Storm Uri several years ago.
To help manage their energy use and keep costs down, Xcel Energy encourages customers to consider conservation measures over the next few days. “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,” said Xcel Energy.
The company outlined several tips for reducing energy consumption, such as lowering thermostats by a few degrees if using a natural gas furnace, taking advantage of sunlight during the day while insulating windows at night, ensuring exterior doors are fully closed, running ceiling fans clockwise in winter, minimizing oven door openings while cooking, lowering or insulating water heater temperatures, keeping furnace filters clean, sealing windows and checking for drafts or leaks, and improving home insulation.
Xcel Energy highlighted its efforts to keep rates low for customers. According to the company, its natural gas rates have remained 27% below the national average since 2015. Over the past decade, average natural gas bills have been about 18% lower than both national and state averages. Additionally, due to milder weather this winter compared to last year, many customers have seen lower bills.
The company also takes steps such as purchasing and storing some of its anticipated winter natural gas needs ahead of time when prices are lower. For electricity service, it uses a variety of sources to limit exposure to rising natural gas costs.
Customers who face difficulty paying their energy bills are encouraged to contact Xcel Energy for payment arrangements or assistance programs. More information can be found at xcelenergy.com/EnergyAssistance or by calling 1-800-895-4999. Customers can also enroll in an Averaged Monthly Payment program for more predictable billing.
As a safety reminder regarding potential gas leaks: “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.”
Xcel Energy serves millions of customers across eight states including Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, New Mexico and Texas.
