By Dave Thompson
Bismarck, ND – Xcel Energy's natural gas customers will be paying a higher minimum charge on their monthly bills.
Xcel wanted the state Public Service Commission to raise its natural gas rates. And in a settlement with the PSC, the minimum charge for residential customers will go from $5.50 a month to $15.69 a month.Under the current rate, customers pay a "delivery charge" of $1.24 per decatherm. That charge is dropped -- and customers will pay only what the gas costs.
Commissioner Tony Clark says the new rate design will mean more stability in the rates -- and is more fair.
"The new billing format will decrease the price volatility in winter gas bills," said Clark. "It ends unfair rate discrimination against customers that live in older homes and have less efficient furnaces. And it helps to lower the chance that we'll hear another rate case in the near future."
Commissioner Susan Wefald, however, preferred an option -- under which the minimum charge for residential gas customers would be $8.75 a month -- plus another $1 per decatherm of gas.
"I think there is a direct connection between the volumes of gas used and costs," Wefald said.
Clark says although the minimum charge is going up -- residential customers who buy large amounts of gas in the winter months will actually pay less than they would under Wefald's alternative.
PSC members believe this is the first of its kind rate design in the country.
Xcel has 41,000 natural gas customers. Most of them are in Fargo, West Fargo and Grand Forks.