Operational Readiness
- Xcel Energy does not have any natural gas supply concerns at the moment, given the amount of natural gas we have in storage. Our supply sources look robust, and the Company continually invests in the gas LDC system to promote safety and reliability, particularly during cold-weather events.
- While it will feel quite cold, the weather is not forecast to approach the design day (or peak demand) conditions that we design our gas system to be able to accommodate.
- The Company’s gas purchasing team is closely monitoring the commodity market to contract with suppliers at the most competitive prices available and to lock in quantities and prices for the long weekend. This includes ensuring gas storage is appropriately filled and ready to be called upon to reduce daily purchasing needs. Also, the company holds month-long baseload supply contracts to ensure adequate supply and provide protection from daily market price swings.
- Fuel oil supplies for generation plants are all at target levels. Fuel oil will be utilized if natural gas commodity prices exceed the cost of oil or if they are needed for reliability purposes.
- There are plans in place to interrupt customers under interruptible rate schedules if system conditions require it.
- We are preparing for the potential of wholesale natural gas price spikes leading up to and during the holiday weekend. Over the past few days, gas commodity prices have increased slightly above the $3.75/dth level included as part of residential customers’ current gas rates for Q1.
- Over the past year, Xcel Energy has built up a reserve of about $40 million to help offset the cost of any significant gas price spikes. This fund stemmed from the Colorado Public Utilities Commission’s approval of the Company’s Gas Price Risk Management Plan (GPRMP) in late 2023. We do not anticipate that the costs of gas during this upcoming MLK weekend will require the need to draw down the reserves built up in the GPRMP fund.
Customer Communications
- As we head into a period of colder weather across much of the country this weekend, the company is sharing energy saving tips with customers, providing ways to lower their usage and save on their bill. These tips are being shared through social media and media outreach and in emails to customers, with planned timing as follows:
- Wednesday – Customer email on cold weather preparations
- Thursday – News release on cold weather preparations
- Thursday/Friday – Social media posts on upcoming cold weather, in addition to winter energy savings social media posts already in market
- We are required by the Commission to notify customers of a natural gas price increase if wholesale prices rise above a certain threshold, so customers can take steps to save energy and money if they would like to do so.
- We have conservation messaging prepared in the event that gas prices spike to level that is equal to or above the ceiling in our GPRMP, or $7.70/dth. Gas prices are not likely to reach a level that high, if at all, until Friday morning, when purchasers will need to contract for gas supplies over the subsequent 4-day period (Saturday through Tuesday).
- If we reach the price threshold, we’ll be letting customers know that same day through the media, social media, customer email and our website.
- We will reach out again to let you know if we do reach that price threshold ahead of the weekend. In the meantime, if you would like to share anything with your constituents on saving energy in our cold weather, below is additional information that could be shared:
Saving energy and money during our cold weather
With a stretch of cold days in the forecast, Xcel Energy is encouraging customers to take steps to save energy and money. The biggest step customers can take to conserve is by lowering their thermostats a few degrees. Saving tips include:
- Lower your thermostat -During winter months, set the thermostat between 65-70 degrees while you’re home, and 58 degrees when you’re away. A programmable thermostat automatically adjusts the temperature based on your routine and could help you save on heating costs.
- Let the sunlight in and keep the cold out – Open blinds to take advantage of the sun’s warmth during the day but 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 not latched.
- Use fans to your advantage – During colder months, run ceiling fans clockwise, so the warm air near the ceiling is forced down.
- Keep your oven’s heat where it belongs -Use your oven light or timer to avoid opening it often while you cook; each time the door is opened even for just a few seconds, the temperature drops 25 degrees.
- Lower your water heater’s temperature or insulate it – The proper temperature for a water heater is 120 degrees Fahrenheit. By lowering it 10 degrees, you can save 3-5% on your water heating costs; you can also insulate it to maximize efficiency.
- Keep filters clean -Dirty furnace filters reduce airflow, requiring your furnace to work harder and use more energy. Change the filter once a month during the winter to reduce your heating costs by 5-15%.
- Don’t let the heat escape -Affordable window sealing kits can be found in most local home improvement stores and can help you save. Have your home evaluated for leaky ducts, drafts around doors and windows, fireplace dampers and other places where air might escape.
- Improve insulation – Improving the insulation of walls, crawl spaces, floors and heating ducts is one of the fastest and most cost-effective ways to reduce energy costs, saving you up to 10% on your monthly energy bill.
More information on ways to save energy can be found on the Energy Saving Tips page at xcelenergy.com.
Xcel Energy will always work with customers to provide options such as payment plans and assistance programs. If you’re facing challenges paying your energy bills, you are encouraged to contact Xcel Energy to set up a payment arrangement or learn more about assistance options that may be available. Learn more by visiting xcelenergy.com/EnergyAssistance or by calling 1-800-895-4999.