DENVER — Xcel Energy wants to raise electricity rates in Colorado by 9.9% for residential customers in August 2026.
Robert Kenney, President of Xcel Energy Colorado told Denver7 Friday that the increase is to recover investments in safety and reliability like transmission, distribution and generating facilities the company has made over the past 3 years.
The average residential customer would see their bill increase $9 per month if their bill is around $100. The average large commercial customer will see a $7 increase per month.
- WATCH | Kenney explains the proposed rate increase in the video player below:
Xcel said electricity rates in Colorado have remained 10% below the national average for the last 10 years.
“We recognize that for some of our customers, any increase can be challenging and difficult, and that's why we're increasing our energy assistance programs to help our low and moderate income customers and to also help our seniors,” Kenney said.
Xcel is directing a $10 million investment from the company, to help fund an expansion of it’s Electric and Gas Affordability Programs. They hope it will double participation. There are 60,000 customers currently enrolled in those programs.
They also plan to enhance benefits to ensure electricity costs do not exceed 1.5 percent of their household income.
Kenney said they are also making changes to affordability plans so that customers will be able to self-attest income instead of providing proof of income for eligibility.
Xcel said since 2022 they have replaced 17,771 wood poles, 17,854 service transformers, added five new substations and replaced 306 miles of distribution cable.
“Some of it is to accommodate more building electrification and transportation electrification. Some of it is to bolster the strength of the system, to make sure that it's more reliable and more resilient. Some of it is to replace aging infrastructure,” Kenney said.
Xcel filed the rate change request with the Colorado Public Utilities Commission on Friday.
It will undergo a review and public comment process with the PUC and, if passed, could take effect in August of next year.
This request is separate from the Xcel Distribution System Plan proposal currently being considered by state regulators. The $5 billion upgrade to electric capacity would potentially increase rates for residential utility customers 9.01% by 2029.
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