To our valued customers,
Colorado is growing fast – and so is the demand for energy. As more families and businesses call our state home, and as energy plays a bigger role in daily life for vehicles, heating, and technology, we're investing to make sure the electricity and natural gas you rely on keeps up.
Energy demand in Colorado is projected to increase 5% by 2029 – the equivalent of adding a city the size of Littleton to our system. At the same time, we must upgrade the power grid and maintain 24,000 miles of natural gas lines to withstand extreme weather, reduce wildfire risk, and operate the cleanest systems possible. We’re committed to doing this with a strong focus on keeping bills as low as possible.
Xcel Energy has proudly served Colorado for more than 150 years, and we are unwavering in our commitment to deliver safe, reliable and affordable energy for generations to come. We are also mindful that the rising cost of living, including energy prices, is a real concern for Coloradans. We want to share steps we are taking to strengthen the service you receive and support the region’s economic growth while lessening the impact of rate increases.
Investing to Serve You Better
To deliver on your expectations, we plan to invest $17.6 billion over the next five years to upgrade and modernize the energy infrastructure that serves you, so we can continue delivering some of the best service reliability in the country. The plan will:
- Strengthen the electric grid to better protect against storms, wildfires, and cyber threats;
- Invest to keep our natural gas system safe and dependable;
- Improve your service with technology to better meet your daily needs, along with expanded energy efficiency, renewable energy choices and conservation programs;
- Expand clean energy to keep your rates competitive while reducing emissions and ensuring sustainable power today and tomorrow; and
- Support Colorado’s economy by creating local jobs, attracting new business and helping maintain property values.
We know the price of energy matters – especially as the cost of living continues to rise. We want to be upfront with you: the rate cases we recently submitted to the Colorado Public Utilities Commission will result in bill increases to fund these essential infrastructure improvements. Depending on the amount of the increase approved by the Commission, the average residential customer who receives both electric and natural gas service could see a total bill increase of up to 10.5% per month, starting late this year.
Our average residential electric bill is 27% below the Colorado state average and 39% below the national average. Even with the proposed increases, customer bills will remain well below state and national averages. Our Colorado customers spend approximately 1% of their household income on electricity – the lowest “share of wallet” in the entire country. That’s something we strive every day to maintain, and with our proposed increase, that share of wallet would remain at or below 1.2%.
We don’t take this lightly and have taken action to manage energy costs for customers by:
- Passing fuel savings directly to you: Since 2017, our investment in Colorado wind energy has saved customers $1.3 billion in avoided fuel costs and tax credits. We pass every penny of those savings directly to you.
- Making our operations more efficient: We have kept our operating costs below the rate of inflation for over a decade and are continually making improvements to be more efficient.
- Expanding energy assistance programs: For customers who may need assistance paying their bills, we’ve expanded these programs to make enrollment easier, cap household energy costs and minimize service disconnections. We’ve proposed to further support these programs through a $10 million contribution financed entirely by Xcel Energy.
Wildfire Aware, Wildfire Prepared
We take seriously our responsibility to help protect our communities amid growing wildfire risk in Colorado and across the country. That’s why our plan includes investing nearly $2 billion in wildfire mitigation and response efforts through 2027.
This work is well underway. Across the state, you'll see our teams inspecting and replacing thousands of power poles, managing vegetation near power lines, and installing nearly 150 AI-enabled cameras that detect smoke and fire in real time.
Safeguarding our customers and communities is our highest priority. During periods of extreme wildfire risk, we may need to implement Public Safety Power Shutoffs and will work to notify affected customers as soon as we can. We are also taking steps to reduce the duration and number of customers impacted by power shutoffs. We’re accomplishing this by adding more devices to the grid that allow us to target smaller areas in these shutoffs, and we’ll put more lines underground in higher-risk areas.
Our Approach to Data Centers
As AI gains momentum around the country, we’re preparing for evolving demands and emerging technologies. The arrival of large-scale data centers – key for powering the digital economy – will require even greater amounts of energy. These facilities create jobs and bring economic opportunities to Colorado, but our existing customers should not subsidize their growth.
Here’s our commitment: data center developers will pay the full cost of the additional infrastructure and electricity they require. This includes grid upgrades, transmission lines, and power generation capacity. Your rates will not increase to support their operations.
Building Colorado’s Future
To keep your power reliable, we need to build for the future with new infrastructure. We’re working with regulators to accelerate solutions – including bringing more wind, solar, battery storage and natural gas onto the system– to meet our state’s growing needs. Those efforts have resulted in the addition of approximately 4,000 megawatts of new clean energy resources, which is enough to power well over a million customers. In doing so, customers will see savings of approximately $3 billion that otherwise would not have been received because of changes in federal tax laws.
We’re also planning targeted investments in the natural gas system to ensure we can safely continue providing this vital service while laying the groundwork for our vision to be a net-zero energy provider by 2050.
What You Can Expect From Us
We are proud to power Colorado’s homes and businesses and to support the state’s ongoing growth and innovation. Through workforce development and good-paying jobs, local investments, property tax payments, non-profit grants, strategic philanthropy, employee giving programs and volunteerism, we’re focused on making the places where we live and serve stronger.
While the challenges are real, so is our commitment to making energy work better for you, your family and our communities. To learn more about the Xcel Energy’s role in supporting the state, please visit our Colorado Impact Report.
Best,
Robert Kenney
President of Xcel Energy – Colorado
