Xcel Energy’s natural gas customers in Colorado will see an increase in their bills this fall, as the Colorado Public Utilities Commission (PUC) approved a settlement that raises average residential bills by 8.6%, or about $5.16 monthly. Small businesses will experience an average increase of 9.2%, roughly $22.76 per month, starting October 6.
The settlement comes after Xcel reduced its original rate increase request from approximately $190 million to $122.7 million. The proposal initially suggested higher increases of 11.4% for residential customers and 13% for small businesses.
Despite the commission’s approval, many customers are expressing concerns about rising costs. Commissioner Tom Plant noted that the settlement balanced various interests, while some residents argue that households are already struggling with high energy expenses. The PUC has received over 900 comments, mostly opposing rate hikes.
Xcel has stated that the higher rates will fund critical infrastructure projects to enhance system reliability and support Colorado’s cleaner energy transition. Additionally, a $5 million shareholder-funded contribution to the Gas Affordability Program will help income-qualified customers with bill credits and disconnection protections.
Overall, while the settlement aims to balance investment needs with customer affordability, the decision has sparked debate among consumers worried about ongoing rate increases.
