Xcel Energy will ask regulators to approve 9% rate increase

The state’s largest electricity provider, Xcel Energy, is asking regulators to approve a rate increase that would raise the average residential bill by about 9 percent — roughly ten dollars a month. The company filed the request with the Colorado Public Utilities Commission, seeking an additional 356 million dollars to recover infrastructure investments, operating costs, and what it says are lost revenue sources.

Xcel says it has been three years since its last increase to the basic electricity charge, and during that time, it has spent nearly 300 million dollars upgrading the distribution system that serves homes and businesses. Those upgrades include replacing thousands of poles and transformers, new substations, and work to support new energy generation.

Xcel’s Colorado CEO, Robert Kenney, says these investments align with state climate policies and customer expectations, and that even with the proposed increase, the company’s affordability metrics remain below national and state averages. He says Xcel also plans to expand programs to help low-income households and seniors keep up with their bills.

But consumer advocates and state regulators are raising concerns. They argue the push for higher rates comes at a time when families are still struggling with rising costs across the board. The state’s Utility Consumer Advocate says Xcel continues to pursue increases without fully accounting for economic pressures on customers. Regulators also point to the company’s long-term plans—more than 22 billion dollars in spending over the next five years—which could drive electricity rates up more than 50 percent by 2029.

Rising electricity costs are a national trend, driven by grid upgrades, the shift away from coal, wildfire mitigation, and increasing demand from data centers. Xcel is far from alone—more than 50 utilities in Colorado are seeking rate increases this year.

Xcel maintains that its investments are necessary to modernize the grid, meet clean energy goals, and ensure long-term reliability. But regulators say the company must find ways to better manage spending and avoid placing too much burden on customers who are already stretched thin. The proposal now goes before the Public Utilities Commission for review.