Xcel has asked the Public Utility Commission for an 8% increase in typical residential electricity, and a proportionate increase for business customers. Xcel says the price increases reflect a higher cost of natural gas used at power plant used to produce electricity.
If approved, prices for a home using 1000 kilowatt hours of electricity a month would increase by about $5.20.
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Just last week, Lubbock Power and Light raised their rates up to thirty percent higher than Xcel's prices. But, Xcel officials say they forecast this increase months ago and even warned their customers of the higher costs.
In a statement released David Hudson, Xcel's Director of Regulatory Administration, Hudson says Xcel will maintain our competitive advantage because their costs of producing electricity continue to be the lowest in the region. He also says Xcel is confident their prices in the high consumption summer months and the remainder of the year will range 15 to 20% lower than prices offered by our Lubbock competitors.
Last week LP&L implemented a rate hike largely in part to bail the company out of an $18 million dollar hole.
If approved, Xcel's price increase would go into effect in July and August.