Xcel Energy seeks nearly 10% electricity rate hike in Colorado

Xcel Energy is asking Colorado regulators to approve a nearly 10% increase in electricity rates, a move that could raise the average household bill by about $10 a month next year.

The company filed its proposal Friday with the Colorado Public Utilities Commission, seeking a $355.6 million increase in base rate revenue to recover costs tied to infrastructure upgrades and clean energy investments made over the last three years.

"These are investments that we've made since 2022 in safety, reliability, resilience, electrification of transportation and buildings to accommodate growth and then to drive down carbon emissions," Robert Kenney, President of Xcel Energy Colorado said. "Our investments have been very much aligned with state policy priorities."

If approved, the average residential bill would increase from $100 to $110 a month, which is a 9.9% jump. For small businesses, the increase would be similar; large industrial customers could see hikes of 7% to 9%. Kenney emphasized that Xcel's bills remain lower than most utilities nationwide.

"Our bills have been 37% below the national average, as well as below the Colorado average," he said. "Another way to think about it is it's about $9 a month, which translates into about 30 cents a day ... all of those investments are in service of our customers, getting safe, reliable service, driving down climate change."

Kenney said Xcel is also expanding energy assistance programs to help vulnerable customers, adding $10 million of its own funds to defray costs.

"We recognize that for some of our customers, any rate increase can be financially challenging," he said. "That's why we're taking proactive steps to enhance and expand our assistance programs."

Consumer advocates say the size of the increase is troubling. Joseph Pereira, deputy director of the Colorado Office of the Utility Consumer Advocate, called the size of the proposed increase "a surprise," and said it reflects a troubling trend.

"It's becoming a bit routine. Case after case from the company reflects these large increases," Pereira said. "When we know that everyone is tightening their belt ... you just wonder, how disconnected are they from the community in which they operate."

While the UCA pushes back against rate increases, Pereira is urging concerned customers to speak up during the PUC review process as well.

"The public do have a voice in this decision making, and so we think it's important for them to express their voice. They need to express their dissatisfaction ... and they need to do it in multiple ways -- with the Public Utilities Commission and their representatives," he said. "And, if we want to see a future that's different than 10% rate increases every two or three years, we need to change the way the company approaches these investments and how the company earns for its shareholders."

The PUC will begin its review process in December, which includes testimony from stakeholders, analysis by commission staff and public comment hearings. If approved, the new rates will take effect in August 2026.

The following information is provided by the Colorado Department of Regulatory Agencies.

Anyone can provide public comment at the PUC website here.

Other ways to submit public comment are as follows (include the Proceeding No 25AL -0494E):

• Submit through email at dora_puc_website@state.co.us
• Mail comments to the Commission's offices at: Colorado Public Utilities Commission, 1560 Broadway, Suite 250, Denver, CO 80202
• Cal (303) 869-3490 to leave a comment. (English and Spanish options are offered.)