Xcel Energy says bills are dropping for February compared to January and February 2008.

The utility filed a monthly gas cost adjustment for natural gas Jan. 16.

The commodity price proposed to the Colorado Public Utilities Commission for residential and small-business customers will decrease by 3 percent next month — to $0.5064 per therm — from $0.5200.

Last February, therm price was $0.6927, or 26.9 percent higher than what has been proposed for next month.

Part of the savings will be less use.

With warmer weather expected through the month, Xcel anticipates most customers will use 22 percent less natural gas for heating compared to January.

Overall bills could decrease by 21 percent to $86.21, based on projected use of 106.8 therms.

This compares to bills this month of $109.44, on projected use of 137.1 therms.

Typical residential February 2008 bills were $101.17, which would be 15 percent or $14.96 higher than projected for next month, adjusted for average current use of 106.8 therms.

Typical small-business customers could use 18 percent less natural gas in February when compared to this month.

Bills would decrease 18 percent to $416.30, based on projected use of 532.6 therms; this compares with bills this month of $509.04, on use of 645.9 therms.

Typical February 2008 small-business customer bills were $480.60.

This would be 13 percent or $64.38 higher than projected for next month, adjusted for average current use of 532.6 therms.

If approved, the new natural gas commodity price would take effect Feb. 1 and only apply for the month.