Denver, CO – 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 is hosting a virtual public comment hearing on July 25th from 4-6 pm (details below). 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 COMMERCIAL 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.
Virtual Public Comment Hearing
A virtual public comment hearing on Xcel’s proposed rate increase will be held as follows:
Thursday, July 25th from 4-6pm
The hearing will be conducted via Zoom. The Zoom meeting will open 30 minutes before the start of the Public Comment Hearing, but the hearing will not start until 4 PM.
Register in advance for this meeting at the link below. After registering, you will receive a confirmation email containing information about joining the meeting.
https://us06web.zoom.us/meeting/register/tZEudOuprDkoHNQp5k9O9Qp-FtYN1TJs5v8v
If you would like to observe and not participate in either of these events, you can watch the livestream on YouTube at: https://www.youtube.com/@COPublicUtilitiesCommission/streams
The Commission strives to accommodate all members of the public at its hearings and meetings by providing services for foreign language users and persons with disabilities upon receipt of a reasonable accommodation request. Requests for such accommodations should be made at least one week prior to the event by completing the Language Access Form. Requests can also be made directly by contacting Holly Bise at 303.894.2024 or by emailing holly.bise@state.co.us.
Other 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 online form.
- Submitting through email at 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).