Energy, Utilities & Water  June 12, 2015

Xcel natural-gas rate hike would fund distribution-system upgrades

Xcel Energy Inc. wants to raise natural-gas rates in Colorado by $109.1 million over the next three years to pay for a five-year project that started in 2012 to upgrade its pipeline distribution system.

Xcel filed the request earlier this month with the Colorado Public Utilities Commission, which will begin taking public comments later this month.

Xcel wants to boost revenue to help recover the cost of replacing gas-distribution pipelines throughout Colorado, including Boulder, Larimer and Weld counties.

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Xcel said replacing the older pipelines will improve reliability and safety.

If approved, the multiyear proposal would result in bill increases for residential natural-gas customers of about 3.4 percent later this year, with increases of 2 percent in 2016 and 2.9 percent in 2017.

Small-business natural gas customers would see similar increases.

Under the proposal, the average residential bill, for 64 therms of gas, would increase $1.76 in 2015, $1.10 in 2016 and $1.57 in 2017. The commercial rate would increase 6 percent over three years to $230.09 a month for 275 therms of gas.

The rate increase also would finance improvements to its distribution system to prevent equipment failures, such as the one in Boulder County in December 2013 caused by flooding that left 7,200 homes in Niwot and Gunbarrel without gas for several days.

“Our mission has always been to provide safe and reliable service for our customers, at a reasonable and competitive price,” said David Eves, president and chief executive of Public Service Company of Colorado, the Xcel subsidiary that provides energy in the state. “This request, if approved. would allow us to continue to meet these goals.”

The company said it plans to replace 275 miles of pipe by 2017.

Eves said the plan, which began in 2012, includes accelerated replacement of older pipes installed in the 1920s and 1930s with modern, longer-lasting materials. It also includes programs to more quickly identify and repair leaks, and improve response to emergency situations.

Xcel Energy operates more than 2,100 miles of transmission-grade pipeline in Colorado, and more than 21,600 miles of distribution-grade pipeline. It has more than 1.3 million natural-gas customers, and operates in 30 of Colorado’s 64 counties.

Since 2012, Xcel has replaced 198 miles of pipe, including all the cast-iron pipes in its system and most of the bare-steel pipes. It still must replace PVC and cellulose-based pipes, the company said.

As part of the project, Xcel is replacing approximately 77 miles of its 95-mile high-pressure transmission pipeline between Westminster and the Wyoming border. Work in Larimer and Weld counties started in 2012 and was completed in 2014. Work in Boulder County started this year and is expected to continue through 2016, said Michelle Aguayo, an Xcel Energy spokeswoman.

Public Service’s natural-gas system is comprised of more than 2,100 miles of transmission pipelines.


Public hearings

The Public Utilities Commission will begin hearing public comments later this month in Grand Junction, Pueblo and Denver.

The public comment hearings will be June 16 at the Department of Veterans Affairs, National Guard Maintenance Shop, 2810 Riverside Parkway in Grand Junction; June 17 at the El Pueblo History Museum, 301 N. Union in Pueblo; and June 18 at the PUC hearing room, 1560 Broadway, Suite 250 in Denver. Each public hearing will begin at 4 p.m. and continue until concluded or 7 p.m., whichever comes first.

Customers who wish to submit written comments about the rate proposal may send them to the PUC at 1560 Broadway, Suite 250, Denver, CO, 80202. Comments should be addressed to Docket No. 15AL-0135G. Customers may also submit email comments to dora_puc_complaints@state.co.us; or use the on-line comment form.


Xcel Energy Inc. wants to raise natural-gas rates in Colorado by $109.1 million over the next three years to pay for a five-year project that started in 2012 to upgrade its pipeline distribution system.

Xcel filed the request earlier this month with the Colorado Public Utilities Commission, which will begin taking public comments later this month.

Xcel wants to boost revenue to help recover the cost of replacing gas-distribution pipelines throughout Colorado, including Boulder, Larimer and Weld counties.

Xcel said replacing the older pipelines will improve reliability and safety.

If approved, the multiyear…

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