Starting
on June 1, Xcel Energy will charge customers based on the two-tiered
seasonal rate from last summer.
For
the first 500 kilowatt-hours customers use in one month, they will pay the Tier
1 rate of $0.046 per-kilowatt-hour. After customers exceed 500
kilowatt-hours of energy use, Xcel Energy will charge them the increased
Tier 2 rate of $0.09 per kilowatt-hour.
Xcel
Energy may also prorate customers’ May/June and September/October bills as the
company transitions between the two types of tiered electricity rates.
The
company attributes the energy rate change to the increased cost of electricity
during the summer season.
“Tiered
rates help cover the costs of producing and supplying more energy during the
summer when demand is the greatest,” said Karen Hyde, vice president of
regulatory affairs at Xcel Energy.
Xcel
Energy will start charging customers the Tier 1 base energy rate again
in October.
