Xcel Energy Inc. (NYSE:XEL) announced it has filed for permission to raise gas rates in Colorado by 3 percent, equal to about a $27.5 million increase.
If the rate request is approved, small business and residential customers will have their bills increase by 3 percent rate mentioned above.
Reasons for the request, according to Excel, are to recover investments made to maintain and operate pipeline systems in Colorado, as well as to help with the other expenses and investments they've made since 2006, the last time the rates were raised.
Assuming an increase, natural gas prices for residential customers would rise by about $1.83 a month, bring the average cost to $55.34. For small business customers the rate would rise on average by $6.90 an month, bringing the total to about $220.43 a month.
If approved, the natural gas rate increase would be implemented in August 2011.
DA Davidson just started covering Xcel, and started them off with a "Neutral" rating and a price target of $24.
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