Xcel Energy-Colorado seeks electric rate increase to cover investments

Xcel Energy Seeks $355.5 Million Rate Increase in Colorado

Xcel Energy, Colorado’s largest electric utility, has submitted a request to state regulators for a rate increase of $355.5 million to its rate base. This proposed increase would result in a nearly 10% rise in the average residential electric bill per month.

The proposal was filed by Xcel with the Colorado Public Utilities Commission on Friday. The commission will conduct hearings to consider testimony from the company, various intervening parties, and hold a public hearing. If approved, the rate increase would take effect in September 2026.

Xcel Energy-Colorado President Robert Kenney stated that the utility’s last rate increase to the rate base was in 2022, resulting in a 3.2% increase in the average residential bill. This new rate case aims to recover costs associated with investments made over the past three years.

The Utility Consumer Advocate (UCA) expressed concerns about the proposed rate hike, considering it too substantial given the current economic climate. The increase is primarily attributed to Xcel’s increased capital spending on distribution, transmission, and generation.

Xcel has emphasized its investments in safety, reliability, resilience, electrification, and emission reduction. The company has reduced carbon emissions by 57% and is working towards the state’s target of an 80% reduction by 2030.

Despite facing criticism for previous rate increases, Xcel Energy maintains that its rates have been below state and national averages for the past decade. The company is expanding its assistance programs to help customers struggling to pay their bills and is adding $10 million in assistance.

Under the proposed rate hike, average residential bills would increase by 9.9%, small commercial bills by 9.3%-9.4%, and large commercial bills by 7.3%-8.6% per month.

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