AARP Colorado: PUC Decision Avoids $60.6 Million in Additional Annual Costs for Ratepayers

AARP Colorado says a recent Colorado Public Utilities Commission decision in an Xcel Energy rate case will help protect residential customers from more than $60 million in increased annual utility costs, while acknowledging that many households will still face higher electric bills as a result.

The PUC’s decision follows months of testimony, analysis, and advocacy regarding Xcel Energy’s request for increased electricity rates.

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Throughout the proceeding, AARP Colorado and other consumer advocates fought for affordability on behalf of residential customers, particularly older Coloradans living on fixed and limited incomes.

AARP Colorado opposed key portions of a non-unanimous settlement agreement supported by Xcel Energy, PUC staff, and several other parties, arguing that some settlement provisions would impose unnecessary costs on consumers without providing corresponding benefits.

“AARP did not agree that the proposed settlement adequately addressed affordability concerns facing residential customers,” AARP Colorado State Director Sara Schueneman said. “We are proud that Colorado consumers had a voice at the table and that our advocacy helped secure a more balanced outcome.”

One of AARP's primary concerns was a proposal to change the method used to calculate Xcel’s electricity rate base. AARP argued that the proposed year-end methodology would increase costs to Colorado customers by approximately $60.6 million annually without improving service reliability or providing additional customer benefits.

The PUC ultimately declined to adopt that proposal and instead kept a traditional 13-month average rate base methodology. Xcel Energy’s rate hike was held to 4.77 percent, or about $5 per month, for residential customers. New rates go into effect on August 29.

“Many Colorado households are already struggling with the rising costs of housing, health care, groceries, and utility bills,” Schueneman said. “While we remain concerned about the impact of higher electric rates on consumers, especially older adults living on fixed incomes, we appreciate that the PUC carefully considered the affordability concerns raised by residential ratepayer advocates.”

The PUC also announced a slate of new consumer protections and updates to Xcel Energy’s Percentage of Income Payment Plan, including a monthly $20 “Senior Discount” credit available to qualifying customers 65 and older.

“This case demonstrates why public participation matters,” Schueneman said.

“Utility rate cases can be highly technical, but they have real consequences for household budgets. When consumers are represented in these proceedings, decision-makers have the information they need to fully understand how rate increases affect the people who pay the bills.”