Xcel Energy says customers’ natural gas bills may rise with plummeting temperatures

With the temperatures dropping, the natural gas bills for Xcel Energy-Colorado customers could increase.

Xcel said Friday that increased wholesale natural gas prices might last a few days as freezing weather across most of the country affects natural gas production and demand. High temperatures in metro Denver are forecast for the low teens and single digits through Monday.

Lows are predicted to drop to zero or below.

Xcel Energy passes on increases in wholesale prices directly to customers. The company said in a statement that it expects the increases to be “significantly smaller” than the jumps in price seen during Winter Storm Uri in February 2021.

Pass-through increases show up on customers’ bills in the next quarter.

Natural gas prices skyrocketed for utilities in Colorado and throughout the Rocky Mountains to the Midwest during the 2021 storm. State regulators approved allowing Xcel to recover about $500 million of the costs from customers through phased surcharges on bills.

To keep costs down, Xcel advised customers to try to conserve natural gas by lowering their thermostats to between 65 and 70 degrees while at home and 58 degrees when away. Other tips are:

• Open the blinds to let in the sun’s warmth during the day and close them at night to insulate against the cold air outside.
• Make sure exterior doors are fully closed.  A major source of a home’s heat loss is from exterior doors that are left cracked open or aren’t latched.
• Use fans to your advantage. In cold weather, run ceiling fans clockwise to force the warm air near the ceiling down. There’s typically a toggle switch on the side of the fan that will change the direction.
• Keep your oven’s heat where it belongs. Use the oven light or timer to avoid opening it often while cooking. Each time the door is opened even for just a few seconds, the temperature drops 25 degrees.
• Lower the water heater’s temperature or insulate it. The proper temperature for a water heater is 120 degrees Fahrenheit. Lowering it 10 degrees can save 3-5% on your water heating costs.

Xcel said it buys a portion of its natural gas before winter, when prices are lower, and stores a  portion to help minimize the impact of fluctuating prices due to cold weather. The company said it will work with customers having trouble paying their bills by providing payment plans and assistance programs.