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New Xcel Energy rates effective as of October 1

Some customers concerned about increase combined with Time of Use rates
New Xcel Energy rates in effect as of October 1
Posted at 10:31 PM, Oct 03, 2022

DENVER — As of October 1, Xcel Energy customers likely noticed a new increase on their bill.

Xcel Energy said the increase is because of the rising price of natural gas. The Colorado Public Utilities Commission approved the new rates, which went into effect October 1. Residential electric customers are expected to see a $3.16 increase per month, and small businesses that are electric customers should pay $4.95 more on a typical monthly bill.

Those rates are expected to remain in effect for three months.

“The increase in natural gas and electric bills is driven by higher natural gas commodity costs, which are affected by many factors on the international market. It’s important to note that Xcel Energy does not make a profit on the natural gas commodity, passing along the wholesale cost to customers," a spokesperson with Xcel Energy told Denver7.

In addition to the new rate, customers are also navigating the Time of Use rates. Essentially, the new rate plan means a customer's bill will be based on when electricity is used.

RELATED: New Xcel plan bases electricity bills off when appliances are used

The three time periods are outlined by Xcel as follows:

  • On-Peak Hours: Weekdays between 3 p.m. and 7 p.m., excluding holidays.
  • Mid-Peak Hours: Weekdays between 1 p.m. and 3 p.m., excluding holidays.
  • Off-Peak Hours: Daily before 1 p.m. and after 7 p.m. plus weekends and holidays. Off-peak hours provide the greatest cost savings opportunity.

RELATED: 310,000 Colorado customers begin new Time of Use Xcel Energy program

Jean Nofles lives in Aurora and said she has been operating under the Time of Use rates since April. She has adjusted several aspects of her life to try and reduce her monthly bill.

“Because I'm retired, I can do that. But not every older person has the luxury of retirement either," Nofles said.

Energy Outreach Colorado is a nonprofit raising money to help low-income Coloradans afford their home energy.

“There are households where they can't afford the bill to start with. And then you put a rate increase, and we're coming into winter months where we know that bills go higher," said Denise Stepto, chief communications officer for Energy Outreach Colorado. “What we're asking people to do is just be very, very aware of their energy use."

In a statement, Xcel Energy said they "understand customers may face financial challenges. Our goal is to always support our customers and we encourage our customers in need to call us and discuss options for payment plans and energy assistance programs that can help take care of their bills. Customers can learn more about Xcel Energy’s energy assistance programs at xcelenergy.com/EnergyAssistance or call 1-800-895-4999.”