Xcel could raise rates by $114M

DENVER – Xcel Energy will raise its base rates by $114 million over a three-year period under a proposal submitted for approval by the state Public Utilities Commission.

The typical bill of a residential customer would increase more than 5 percent over three years under its proposed settlement agreement, according to Xcel. Residential customers would see increases of $1.68 per month this year, $1.29 next year and 73 cents in 2014.

However, the company expects overall electricity rates to remain below or very near charges to customers last year and in 2010 because of lower natural-gas costs.

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In January, Xcel enacted rate reductions that will reduce purchased capacity costs this year by about $26 million. The company is also projecting fuel cost reductions from 2011 to 2012 of about $83 million.

These two reductions more than offset the increase in base rates from May through December 2012, according to Xcel.

“The rate increases called for under the settlement are moderate and provide for additional certainty on electric bills,´ said David Eves, president and CEO of Public Service Co. of Colorado, an Xcel company. “When combined with forecasted lower natural-gas prices, we expect to be able to more than offset base rate increases with savings.”

Xcel serves customers in multiple communities in Larimer and Weld counties, including Greeley.