Colorado customers question Xcel Energy's proposed rate increase

Some Colorado customers are pushing back against a proposed Xcel Energy rate increase, arguing they are already paying high bills without receiving reliable service.

The Colorado Public Utilities Commission heard public comment Tuesday as it reviews a proposed settlement agreement in Xcel Energy's electric rate case.

If approved, the settlement would reduce Xcel's original request by about 37%, lowering the proposed increase from roughly $355.6 million to $224.9 million.

For the average residential customer, that would mean an estimated 5.86% increase in monthly electric bills, or about $6.13 more per month.

Cari Carter, who lives in the Columbine Knolls area, says her neighborhood has experienced repeated power outages and questions why customers should pay more.

"Sometimes it was a couple hours, sometimes it was over a long weekend," Carter said.

She said her neighbors lost power between 10 and 12 times during the last six months of 2025, often without notice.

Carter says the outages created additional expenses for her family, including replacing spoiled food and purchasing ice and coolers to preserve groceries.

"Getting bags of ice and coolers and trying to keep as much food, not opening up the refrigerator, cooking on a camping stove outside. I mean, it's just been stressful," she said.

She also says an elderly neighbor who relies on oxygen was forced to leave her home during an outage.

Several customers shared frustrations during Tuesday's public comment hearing, questioning whether Xcel should receive a rate increase without stronger evidence that service is improving. Some argued that a monopoly utility should be held to a higher standard of accountability.

In a statement to CBS Colorado, Xcel Energy said the proposed settlement would "reduce the company's original rate increase request, add customer protections and support continued infrastructure investment in the electric system our customers depend on every day."

The utility says it has invested more than $4 billion in Colorado's electric system since its last rate case in 2022. According to Xcel, those investments include replacing nearly 18,000 utility poles, adding more than 400 miles of transmission lines, replacing approximately 306 miles of distribution cable and bringing new substations online.

The company says the agreement would also provide bill credits, stronger support for income-qualified households and increased accountability tied to power plant performance.

Xcel says the proposed increase would remain below the rate of inflation over the same period and that Colorado customers continue to pay electric rates below the national average.

For Carter, the issue comes down to trust.

"I don't believe them, because I've not seen the improvement at all in our system."

The proposed settlement now moves to the Colorado Public Utilities Commission for review. A final decision is expected later this Summer.