A coalition of four consumer groups on Wednesday came out against Xcel Energy’s proposed electricity-rate hike.
The groups launched a website called ExposeXcel.com and urged consumers to visit the site to register objections to the proposed $210 million-a-year rate hike.
The four groups are: ProgressNowAction.org, Colorado Public Interest Research Group (CoPIRG), Colorado Progressive Coalition and Clean Energy Action.
Members of the coalition complained about what they called high gas and electric bills, as well as Xcel’s profit levels, severance payments to former executives and methods of financing construction of the new Comanche 3 power plant.
Rex Wilmouth, director of CoPIRG, called on Xcel to promote more energy-efficiency programs to help cut power usage.
“We think the rate increases are unnecessary,” he said.
Xcel spokesman Tom Henley said the recent increases in customer bills were caused by rising costs of fuel used to generate power. Xcel doesn’t earn a profit on those costs, which are passed directly to customers.
He said the company was allowed to earn a 10.75 percent rate of return last year but earned only 8.5 percent on its investment.
One of the reasons for the rate increase is so Xcel can recover $1 billion it has invested in its electric system since 2002, Henley said.
Xcel wants the rate hike to go into effect in January.
The state Public Utilities Commission will take testimony and hold hearings before deciding whether to approve the rate hike.
Staff writer Steve McMillan can be reached at 303-820-1695 or smcmillan@denverpost.com.
