AMARILLO, TX (KFDA) - Next time you go to pay your energy bill, Xcel Energy is saying customers should expect to see some savings.
As the summer heat begins to pick up and air conditioning units go into overdrive, you're using more electricity.
Usually that translates into an increase in your bill, but Xcel Energy says most customers should be seeing a decrease in cost.
These lower bills went into effect on May 1st, after Xcel received approval from the Public Utility Commission of Texas to reduce the price of fuel to match the decreasing cost of natural gas.
"Why this is so significant for the typical residential customer is fuel costs makes up a quarter to a third of the regular bill, dependent on usage," said Ronnie Walker, Regional Manager for Xcel Energy.
"Our electric bills are going to be cheaper this summer because natural gas is so much cheaper," said Wes Reeves, spokesperson for Xcel Energy. "A lot of people think, 'Well what does that have to do with electricity?' We use natural gas for our power plants. About 36% of your electricity was derived from natural gas power plants last year."
When you get your next energy bill, the company says to look at the fuel cost factor line and expect to see a lower number than before.
"It'll probably be about 6% lower on a residential bill," said Reeves. "Some of our commercial and industrial customers are going to see anywhere from an 8% to 14% reduction."
On a bill for a home that uses 1,000 kilowatt-hours per month, customers could see an average savings of seven dollars each cycle.
Xcel says there are other ways to lower your bill and simple options can have a big impact.
"Let's see how much we can save this summer," said Reeves. "We got lower prices, it's a great way to start. Make your home more efficient by managing your thermostat, all those various things."
Xcel is expecting the cost of fuel to stay on the lower side for the remainder of the year and the savings on your bill to remain.