Xcel Energy Inc. on Monday filed a proposal with the Colorado Public Utilities Commission to reduce the natural gas component of its Colorado retail rates by $571 million a year. If approved, the gas cost adjustment would reduce the delivered price of gas by more than 40% beginning in October.

Under the plan, Xcel would reduce the cost of gas to $2.79/Mcf from the $6.91/Mcf that customers paid last winter during the escalating price swings. The costs are in addition to fixed delivery rates, which include metering, billing and distribution costs, and they vary depending on the customer.

“We know last season’s sharp price increases for natural gas made life difficult for everyone in Colorado and we pledged to reduce prices as soon as we were able,” said Cynthia Evans, vice president for Xcel Energy in Colorado and Wyoming. Price increases and decreases for natural gas are passed on dollar-for-dollar to Xcel’s Colorado customers, she said.

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