Utility says rate increase would cover costs associated with growth in demand, reliability.
Working from the bucket of a boom truck, apprentice lineman Travis Longfellow, left, and lineman Jadon Elliott work on large transmission structures that are part of Xcel Energy’s the Power Pathway project just south of Brush, Colorado, on Jan.
8, 2025. Workers with GRD Construction are putting in the structures, cables, and lines that are part of the $1.7 billion electric transmission project, which is slated to take three years to complete. Xcel Energy, Colorado’s largest electric utility, has asked state regulators for an increase of $355.5 million to its rate base, which would boost the average residential electric bill by nearly 10% per month., which will take testimony from the company and various intervening parties and hold a public hearing. If approved, the increase would take effect in September 2026. Xcel Energy-Colorado President Robert Kenney said the utility’s last increase to the rate base was in 2022. The average residential bill rose by 3.2%, according to an Xcel statement after an agreement was reached with all the parties The rate base is a utility’s investments to provide services and on which it’s allowed to earn a regulated rate of return. “This rate case is to recover costs associated with investments that we’ve made over the last three years,” Kenney said. The Utility Consumer Advocate, or UCA, which represents the public before state regulators, said the proposed increase is “too big of an increase.” “It’s an especially large increase given the context of the economic times,” said Joseph Pereira, UCA deputy director. The increase is largely related to Xcel’s expanded capital spending on distribution, transmission and generation, Pereira said. “It’s unclear to parties in the UCA that the company is prioritizing investments that are the biggest bang for the buck, that increase reliability and that adopt an intelligent approach to how they’re using the grid,” Pereira said. “It still appears that the company is using a crude blanket approach to replacing and investing in new infrastructure.” Kenney said Xcel has invested in safety, reliability, making the system more resilient, electrifying transportation and buildings, meeting increased demands from growth and taking steps to significantly reduce carbon emissions. Xcel has said it has reduced carbon emissions by 57%. The state’s target is to cut greenhouse gas emissions by 80% from 2005 levels by 2030.“We’ve added a tremendous amount of renewable energy over the last several years,” Kenney said. “And we’ve done all of this while keeping bills as low as possible.” Xcel has faced criticism from the Office of the Utility Consumer Advocate, or UCA, which represents the public before state regulators, and customers over the past few years for what the UCA has called “a pancaking of rate increases.”after a cold winter and high natural gas prices sent costs soaring statewide. A legislative committee held hearings and approved a bill intended to protect customers against future price shocks and level what some see as a playing field tilted in the utilities’ favor. Historic Colorado River deal to conserve flows advances after winning key approval from state water boardFight back against Xcel’s rate creep Kenney said Xcel Energy’s rates have been well below state and national averages for approximately the last 10 years. But, he added, the company recognizes that some customers face challenges to paying their bills. He said Xcel is expandingIn the past, Xcel required people to show proof of income to apply for help, but now will accept their statements of need. And those receiving other aid, such as Supplemental Nutrition Assistance Program, or SNAP, will be automatically eligible. Under Xcel’s proposed rate hike, the average monthly residential bill would rise 9.9%; small commercial bills would go up 9.3%-9.4% per month; and large commercial monthly bills would increase 7.3%-8.6%. Billionaire ranch owner violated Colorado environmental laws during construction of controversial fence After 50 years, Boulder’s famed Dark Horse bar to be demolished, move to make way for housing developmentDriving a 2WD vehicle on I-70 in a storm? New traction law requires chains or anti-slip devicesDenver ties mark Friday for second-latest date for a first snowfall Rep. Jason Crow, other Democrats push back as Trump accuses them of ‘seditious behavior’ punishable by deathTrump's response to Rep. Crow's video was completely unhinged
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