Xcel Energy has informed customers that cold weather across much of the United States is leading to a temporary rise in wholesale natural gas prices. The company, which does not profit from the sale of natural gas, said this increase would likely add less than one dollar per month to the average residential customer’s bill over the coming year.
The higher demand for natural gas during colder periods impacts both heating and electricity generation costs. However, Xcel Energy noted that this price change is significantly smaller than what was seen during Winter Storm Uri several years ago.
“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 stated.
According to Xcel Energy, its efforts to keep costs low have resulted in some of the lowest natural gas rates in the country. Since 2015, these rates have remained about 27% below the national average. Over the last decade, typical bills have been approximately 18% lower than both national and state averages. The company also reported that so far this winter, bills are lower compared to last winter due in part to milder weather.
Customers are encouraged to conserve energy by adjusting their thermostats down a few degrees if they use a natural gas furnace. Additional recommendations include setting thermostats between 65-70 degrees while at home and 58 degrees when away; using sunlight for warmth during daylight hours; ensuring exterior doors are fully closed; running ceiling fans clockwise; minimizing oven door openings; lowering or insulating water heater temperatures (while keeping them at least 120 degrees); changing furnace filters monthly; sealing windows and checking for drafts; and improving insulation throughout homes.
More information on energy-saving strategies can be found on Xcel Energy’s Energy Saving Tips page at xcelenergy.com. Although these price changes mainly affect those who use natural gas directly, electric customers may also benefit from conservation since some electricity is generated using natural gas.
To help reduce exposure to volatile prices, Xcel Energy purchases and stores part of its expected winter supply before cold weather arrives and uses various power sources for electricity generation.
For customers facing financial challenges with their utility bills, Xcel Energy offers payment plans and assistance programs. Those interested can visit xcelenergy.com/EnergyAssistance or call 1-800-895-4999 for more details or set up arrangements such as an Averaged Monthly Payment plan.
The company also reminded customers about safety 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 provides service across eight states including Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, New Mexico and Texas.
