Xcel Energy says thanks to a recent decrease in wholesale natural gas prices, residential ratepayers will see energy bill cuts averaging $33, (16.71%) and cuts to average small business customers of $140 (17.61%). The price cut must be approved by the Public Utilities Commission, and is only for December. Tuesday’s announcement comes just one day after the company warned customers that cold weather is forecasted to blanket the region through the week while energy prices are expected to rise.

Xcel will still be submitting a new quarterly commodity cost adjustment in mid-December for the first quarter of 2023.

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Customers pay the wholesale cost of natural gas paid by Xcel as a “pass through” expense. Xcel doesn’t mark up the price, so the costs fluctuate with the market price.

In July, August and September spot prices were between $7.88 and $8.80 per thousand cubic feet, but starting in October, the federal Energy Information Administration reported a drop to $5.66 on the benchmark Henry Hub exchange.

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Still, $5.66 is more than double the price of the October average of $2.70 for 2015 through 2020. Prices jumped from $2.39 in October 2020 to $5.51 in October 2021.

“Even with the drop in natural gas prices, the cost of natural gas remains higher than it has been in recent years,” said Xcel in a press release. “Xcel Energy encourages customers to take advantage of the range of energy efficiency programs and saving tips the company offers to help customers manage their energy use and keep their bills as low as possible. The company also encourages customer to reach out if they’re having trouble paying their bills, so they can be connected to programs or resources that may be able to help.”

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