DENVER — A 4.77% rate increase is now in effect for Xcel Energy residential and commercial customers in Colorado.
The rate increase was approved by the Colorado Public Utilities Commission (PUC) on Aug. 19, reducing Xcel’s initially filed request for $356 million in annual revenue by 56%, according to a release.
The increase raises monthly bills for residential customers by $5 and commercial customers by $7 and will go toward funding infrastructure improvements, including replacing thousands of poles and transformers.
According to the release, the rate increase also comes with a package of affordability protections, which include measures to expand benefits under Xcel’s Percentage of Income Payment Plan, which limits monthly bills to a certain percentage of a customer’s income, and add new safeguards for vulnerable populations.
- Bill Protections: Caps maximum energy costs for PIPP-eligible, income-qualified customers who receive both gas and electric service from Xcel Energy at 2.5% of household income (a reduction from the current level of 6%).
- Extended Disconnection Protections: Eliminates power shutoffs for nonpayment for all active PIPP participants and prohibits involuntary disconnections for income-qualified customers referred by LEAP, Energy Outreach Colorado, or the Colorado Energy Office, even if they are not enrolled in PIPP.
- Improved PIPP benefits: Eliminates $100 monthly benefit cap per customer.
- Fairer Payment Plans: Restricts down payment requirements for energy-burdened or income-qualified customers who have struggled with past payment agreements, speeding up service reconnections.
- Shareholder Funding: Xcel Energy will contribute $10 million in direct shareholder funds to the PIPP program ($5 million electric, $5 million gas).
- New Senior Discount: Creates a dedicated discount program providing a $20 monthly bill credit for income-qualified seniors ages 65 and older.
- Direct Application Process: Allows Xcel Energy to accept direct PIPP applications, removing previous requirements for referrals from LEAP, Energy Outreach Colorado, or the Colorado Energy Office.
- Streamlined Verification: Enables income qualification via customer self-attestation or using proof of enrollment in other income-qualified programs like SNAP or TANF.
- Concierge Customer Service: Allows Xcel to hire dedicated staff to guide income-qualified customers through enrollment in assistance.
The release added that the Commission directed PUC staff to open a proceeding to learn more about utility disconnection patterns.
Staff will also work to identify disconnection trends in Xcel’s service territory to inform the creation of a pilot program to provide assistance to the most vulnerable customers.
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