Xcel Energy said natural gas use by Colorado customers will likely be higher in September, but prices for the fuel will stay relatively flat. Xcel predicted that average customer bills next month will be lower than they were in September 2008.

Typical residential use is projected to rise by about 45%, sending monthly bills more than $3 higher than in August, the utility said. Average use is expected to go up from 15 to 21.7 therms. Last year typical September bills were $23.91.

Small businesses face an increase in gas use of about 38% next month compared with this month, increasing bills to $93.95 for the month, compared with $73.47 in August. Typical bills for these customers in September last year were about $103.95.

The natural gas commodity price proposed to the Colorado Public Utilities Commission for residential and small business customers would increase by about 2% next month — to 31.77 cents/therm — from the this month’s price of 31.24 cents/therm. The September 2008 natural gas price was 43.81 cents/ therm, or about 27.5% more than the price projected for next month.

Xcel said the Nymex Henry Hub natural gas contract price rose 17 cents/Dth, with “minor fluctuations” between late July and early August. Regionally, the Colorado Interstate Gas basis differential moved down 21 cents to 55 cents/Dth. “This advance was influenced by emerging optimism that demand from an improving economy could support natural gas prices that are marginally higher,” the utility said.

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