Colorado Xcel customers to see 4.77% rate hike as households say increase will strain already-stretched budgets

Colorado households are pushing back on an incoming electric rate increase, warning that even a small version of the hike would strain budgets already stretched thin by summer and winter energy costs.

Customers say the added cost lands at a time when many already struggle to cover basic utility bills, which is part of a wave of frustration over rising costs.

Here's what to know

Xcel Energy asked regulators for $225 million in additional revenue, a request Denver7 said would raise typical monthly electric bills by 6%.

The state Public Utilities Commission then lowered that figure to $185 million ahead of a formal decision. The PUC then announced on Wednesday that it had approved an increase of $157 million, with an expected bill increase of about $5 per month for residential customers and about $7.30 for commercial customers, according to The Denver Post. Xcel will still have the chance to appeal.

For customers whose bills already swing widely by season and are now facing a 4.77% increase, the smaller numbers discussed ahead of the decision didn't ease worry.

"I pay an average of $130 in the summer and over $300 in the winter," Columbine Hills resident Kelsey Wilson told Denver7. "I can only pay what I can pay, which is usually around $175 each month. So in the winter when my bill is over $300, I'm short on my payment. By the time summer hits, I'm usually around $400+ overdue to Xcel."

Xcel told Denver7 the money would fund 17,771 wood pole replacements, 406 miles of new transmission circuits, 306 miles of distribution cable replacements, and five new substations for transmission and distribution, among other upgrades.

More background

"My monthly bill, especially with as hot as it's been, is about $100 bucks or more," Denver resident Jaime Cowam told Denver7.

Xcel maintains its rates are relatively affordable, pointing to bills that run roughly 39% below the national average. Colorado regulators have, however, separately pushed back on that comparison, arguing it leans on the state's higher-than-average incomes rather than reflecting what households actually pay.

"We recognize affordability is a top concern for our customers," the utility told Denver7 in a statement. "While we continue investing in safe, reliable, and increasingly clean energy, we carefully evaluate every investment to ensure it delivers value and meets the long-term needs of the communities we serve."

The station said Xcel declined to share a count of past-due customers.

What can be done?

The stakes go beyond a single rate filing for many households since keeping the lights and heat on without falling into debt is the underlying concern.

"I'm going to have to turn the air off and be extremely hot," Cowam said. "There's no need to be raising the bills; they have been raised enough."

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