Xcel Energy bills are still higher than they were a year ago, but some relief is coming for February and March.

On Monday the Colorado Public Utilities Commission approved Xcel Energy’s interim application to bend its quarterly adjustment for natural gas costs downward — resulting in a roughly 15% bill reduction for both residential and small commercial natural gas customers, as well as lesser savings for other customers.

“I was really pleased to see this application,” said commission Chair Eric Blank in a news release. “I think a large number of utility customers are really struggling with high energy bills right now, and hopefully this 15 percent bill reduction starts to quickly provide meaningful relief.”

Residential ratepayers of Colorado’s largest natural gas utility will save an average of $18.19 and small businesses will save about $84.90 a month in February and March, according to Xcel spokesperson Michelle Aguayo.

Gas cost adjustments are passed onto customers based on the company’s purchases. Natural gas is an unregulated market, so ratepayer bills are adjusted based on gas cost increases or decreases. Utilities don’t make any profit or charge interest on fuel pass-through costs, which can hit ratepayers hard if unusual weather and market conditions collide to drive up prices.

As a result of winter storm Uri in February 2021, Xcel had to buy some $650 million in natural gas at record-breaking spot market prices. Eventually the commission approved a $500 million bill for ratepayers, who will be paying it off at about $4.68 per month for the next couple of years.

The commission imposed an $8 million fine on the company in part for not notifying customers of the skyrocketing cost of natural gas so they could reduce their energy use.

Gail Connors, spokesperson for the commission, told The Denver Gazette that most of the costs were deemed to be prudent.

“While the Company’s actions during the extreme weather event were not perfect, by and large, the Company acted prudently based on the information available to it at the time, which was no easy task given the numerous complicating factors that it faced,” according to the commission’s decision.

“We understand with the upcoming extreme cold that customers might be concerned with their heating needs and their energy use,” Aguayo said in a statement to The Denver Gazette in late December, just before a predicted cold snap. “We want customers to know we are doing our part to help keep their bills low.”

Consumers are giving the commission an earful about their high utility bills.

In response to written comments the commission says document substantial hardships for many customers, a meeting is scheduled Tuesday starting at 3 p.m. were people can either view the meeting on the PUC website or sign up for one of two zoom meetings to comment.

• Utility Bill Affordability

• Tuesday, January 31, 2023

• Register here to comment between 3-4:30 p.m., or

• Register here to comment between 5-6:30 p.m.

• Written comments may be submitted at any time using this online form.

• A live webcast of the hearing in Hearing Room A will be available at: http://www.dora.state.co.us/pacific/Webcasts/a.html

• An audio recording will be available 24 hours after the hearing at: https://puc.colorado.gov/webcasts/