The Colorado Public Utilities Commission is seeking comments on a proposal from Xcel Energy to increase natural gas rates for its customers. Xcel has requested a phased increase to avoid overlap with the current Storm Uri cost recovery.
Although Xcel requests the increase be effective on November 1, 2024, it proposes to delay the increase on customer bills until February 15, 2025, when the current rate adjustment to recover costs from 2021’s Storm Uri expires. This delay means a larger impact on bills from February 2025 to February 2026 to account for the three month deferral. Gas rates would then be adjusted down to a long-term increase of 2.54% starting in February of 2026. The Commission must consider the deferral proposal to ensure that it will result in just and reasonable rates overall.
Xcel states that its request for the rate increase is driven by investments to enhance the safety and integrity of its gas system, and connect new customers. Xcel says it has also made investments in information technology and that inflation, new labor agreements, and market factors have led to an increase in operation and maintenance expenses.
The Commission hosted a virtual public comment hearing on July 25th from 4-6 pm which can be viewed on YouTube here. Future opportunities for public comment could be scheduled before the Commission issues a decision on the Xcel request this fall.
For average residential and small commercial bills, the rate impact of Xcel’s would be:
Residential Rates
Current Residential Average Gas Bill $62.43
Feb 2025 to Feb 2026 Residential Avg Bill $67.07
Starting Feb 2026 Avg Bill Residential $64.02
Increase Feb 25/26 over Current Rates Residential 7.44 %
Increase Feb 26 over Current Rates Residential 2.54 %
Small Commetcial Rates
Current Small Commercial Average Gas Bill $268.94
Feb 2025 to Feb 2026 Small Commercial Avg Bill $281.69
Starting Feb 2026 Avg Bill Small Commercial $270.57
Increase Feb 25/26 over Current Rates Small Commercial 4.74%
Increase Feb 26 over Current Rates Small Commercial 0.61%
Xcel is also proposing a Rate Stability Mechanism that separates the Company’s revenue from the volume of gas it sells to support Colorado’s decarbonization goals.
Options to Submit Public Comments
Individuals can also submit written or verbal public comments. Public comments should reference Proceeding Number 24AL-0049G and can be provided by:
- Submitting written comments through the Commission’s Electronic Filing System (E-Filings)
- Submitting written comments using the Commission’s dora_puc_website@state.co.us.
- Mailing comments to the Commission’s offices at: Colorado Public Utilities Commission, 1560 Broadway, Suite 250, Denver, CO 80202.
- Calling (303) 869-3490 to leave oral comments (English and Spanish options).