DENVER — The Colorado Public Utilities Commission (PUC) approved an Xcel Energy rate increase Wednesday, raising monthly bills for residential customers by $5 and commercial customers by $7.
This approved rate hike is significantly smaller than what Xcel was originally asking for.
Nevertheless, Angel Merlos with The LIBRE Initiative said this is the eighth rate hike since September 2023. His organization is now launching a letter-writing campaign asking regulators to put consumers first.
"If you're on a fixed income, fixed budget, that really impacts you," Merlos said. "$5 here, $5 there, it adds up."
Merlos said it's important to note that customers have no alternative when it comes to their utility provider.
"People can't go shop somewhere else if they don't like Xcel," he said. "They have to pay what Xcel offers, and unfortunately, that's the situation that we find ourselves in."
Merlos believes the solution starts with engaging elected officials.
"Let's talk to our legislators to engage the utility companies and the Public Utilities Commission to do their job and come up with a solution that puts the people first," Merlos said.
Xcel Energy said the increases fund infrastructure improvements, including replacing thousands of poles and transformers.
"Our Colorado customers continue to pay among the lowest electric rates and bills in the nation," an Xcel Energy spokesperson said, in part, in a statement. "In 2025, the average residential electric bill was 39% below the national average…"
Read the full statement from Xcel Energy below:
"For more than 100 years, we have invested in safe, reliable, and clean energy for Colorado, and we carefully evaluate every investment to ensure it delivers value and meets the long-term needs of the communities we serve.
While we are awaiting the Commission's written decision, we are disappointed that it did not fully approve a settlement agreement reached with a diverse group of stakeholders, including the Colorado Public Utilities Commission staff. The settlement reflected a balanced approach that sought to recover prudent investments already made to serve Colorado customers and comply with state priorities and regulations - all while remaining mindful of affordability concerns of our customers. The Commission’s decision not to support the infrastructure needed to deliver on Colorado’s energy policies - supported by such a broad range of stakeholders - is surprising, and we will need to evaluate our investment approach in Colorado going forward.
We also disagree with characterizations of our current capital investment levels. Many of the investments included in the 2025 electric rate case were driven by Colorado energy policy and focused on strengthening the electric grid, improving reliability and resilience, preparing for growing demand, and enabling the continued transition to cleaner energy resources.
Through this case, we sought to recover costs for investments already serving Colorado customers, including:
• 17,771 wood poles replaced
• 17,854 service transformers in use on the distribution system
• 775 megawatts of new generation interconnected to transmission
• 459 new transmission circuit miles
• 306 miles of distribution cable replaced
• 50 new distribution feeders
• 5 new transmission and distribution substations placed into service
These investments address the needs of a growing and evolving energy system. They help improve reliability, strengthen the grid against increasingly severe weather, reduce outage risk, and support the delivery of cleaner energy resources that customers and state policy demand.
Though these investments have been extensive, we have remained focused on preserving affordability for our customers. Our Colorado customers continue to pay among the lowest electric rates and bills in the nation. In 2025, the average residential electric bill was 39% below the national average and 27% below the state average, while Colorado households spent about 1% of their income on electricity, among the lowest levels in the country.
We remain committed to balancing affordability with the investments necessary to provide safe, reliable, and increasingly clean energy. As we evaluate the Commission's decision, we will continue working to manage costs responsibly while maintaining the level of service Colorado customers expect."
The rate hike goes into effect at the end of December.
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