Although wholesale natural gas prices increased month-over-month for the first time this year, June retail gas bills in Colorado will be 30% lower than they were in the same month last year and they will drop 17% from their current levels in May, according to Xcel Energy, which operates the largest combination gas and electric utility in the state.

Xcel told the Colorado Public Utilities Commission (PUC) Monday that the commodity cost of gas would increase 39% in June (to 40.1 cents/therm from 28.9 cents/therm). The new price is still less than half of what it was in last June when the commodity rate was 93.09 cents/therm, Xcel said.

Despite a higher therm price on a month-to-month basis, typical residential customers are expected to decrease use by 43% in June, compared to their use this month,” the utility said. “Overall bills would decrease to $21.26, based on projected use of 17.8 therms. This compares to bills in May of $25.53, on projected use of 31 therms.”

Xcel said warmer weather is expected to drive a 35% decrease in use in June for typical small-business customers when compared to May. Bills would decrease 17% to $93.91, based on projected use of 116.5 therms. Bills this month were expected to be $113.09, on use of 179.7 therms.

“The Nymex Henry Hub price had been fairly stable or falling slowly throughout the months of March and most of April 2009 but began rising in the last week of April, eventually climbing about 19% higher, to $4.30/Dth,” Xcel said.

“The increase in Nymex prices seemed to be the expression of an industry sentiment that envisions higher demand as the current economic recession moderates, especially by commercial and manufacturing customers. During the past month, the Colorado gas basis narrowed another 50-85 cents/Dth, netting $3.46/Dth in the Rocky Mountain region.”

Xcel noted that storage continues to run above last year’s levels at this time, and that crude oil prices also are continuing to rise.

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