Colorado’s largest utility raised electric rates on August 29, 2026, five weeks before October 1. The Colorado Public Utilities Commission (PUC) approved less than half of what Xcel Energy asked for.
This article covers Xcel Energy (Public Service Company of Colorado). It does not cover Black Hills Energy, electric cooperatives or municipal utilities.
Quick Summary
| Stage | Annual revenue | Residential change | Per month |
|---|---|---|---|
| Xcel’s request | $356 million | 9.9% | $9.94 |
| Settlement | $225 million | 5.86% | $6.13 |
| PUC approval | $157 million | 4.77% | $5.00 |
New rates took effect August 29, 2026 (Proceeding 25AL-0494E).
What the PUC Decided
- Amount: $157 million a year, 56% below the request. The PUC cut the settlement the parties had reached by $68 million.
- Bills: $5.00 a month for a typical residential customer.
- Bill help: payments under the income-qualified percentage of income payment plan (PIPP) are capped at 2.5% of household income. The $100 monthly benefit cap was removed. Xcel shareholders will contribute $10 million.
- Seniors: a new $20 monthly discount for customers 65 and older.
- Enrollment: income can be self-attested, and customers can apply directly.
What This Means for Homeowners With Solar
We did not verify Colorado’s current net metering or export credit rules for this article, so we give no export rates here. Ask your utility for its current solar tariff, and check how exported energy is credited before sizing a system. Fixed monthly charges are not reduced by solar.
A higher per-kWh rate raises the value of solar you use yourself. Our solar payback guide shows how the retail rate and the export credit change the math.
What to Check on Your Bill
- Your rate plan, especially whether it is time-of-use.
- The service and facility charge.
- Rider lines, which change on their own schedules.
- Whether you qualify for the senior discount or PIPP.
For help sorting the lines on your bill, see our guide to reading your electric bill.
Limitations
Figures come from the PUC’s news release. We did not find the approved return on equity or the typical usage behind the $5.00 figure. Other Xcel riders, and its separate gas rate case, are not covered.
Sources
- Colorado PUC, “PUC Cuts Xcel Energy’s Electric Rate Request and Expands Consumer Protections”
- The Colorado Sun, “Colorado residential electric bills will rise $5 per month, about half what Xcel requested,” Aug. 20, 2026
Frequently asked questions
Did Colorado electric rates change on October 1, 2026?
We found no change on that date for Xcel Energy. Its new base rates took effect on August 29, 2026.
How much did Xcel Energy bills go up?
About $5.00 a month, or 4.77%, for residential customers, according to the Colorado Public Utilities Commission.
Who qualifies for the new senior discount?
The commission's order created a $20 monthly discount for customers aged 65 and over. Check Xcel's enrollment rules for details.
