DENVER—Xcel Energy has proposed a $180.2 million increase in base electric rates next year, on top of a $112.2 million increase expected to take effect in July.
The utility said Friday that the latest request, which would increase typical monthly residential customers’ bills by $4.98, would take effect in January, if approved by the Colorado Public Utilities Commission. It would raise the typical small-business customer’s bill by $5.40 a month.
Xcel said in November that the proposed hikes would help it recover the about $1.7 billion it invested in power generation, transmission and distribution to improve the reliability of its service.
It said the latest request is driven by the completion of a new, 750-megawatt generating unit at its Comanche Generating Station in Pueblo, an added 300 megawatts of generation at the Fort St. Vrain Generating Station in Platteville, and improvements in its distribution system.
The PUC and Office of Consumer Counsel received nine volumes of information that Xcel submitted with its request Friday. Hearings on the proposal haven’t been set yet.
“We’re going to look at it very closely to make sure it doesn’t adversely affect residential, business and agricultural consumers,” said Bill Levis, director of the Office of Consumer Counsel.
His office had objected to a $159 million rate increase Xcel hoped to implement this summer, and Xcel agreed last month to a settlement that trimmed the request to $112.2 million. That increase is expected to raise rates for typical residential customers by about $2.94 per month and small businesses by $4.42 per month beginning in July.
The request that Xcel filed Friday would hike base rates again. Xcel said it also includes a proposal to update seasonal rates to better reflect costs of meeting demand for electricity, including during high-demand summer months.
Xcel also suggested higher rates for when customers use more than 500 kilowatt-hours from June to September. The utility said the PUC had urged it to develop rates to promote efficient energy use during peak periods.
Another proposal would create a low-income assistance program for electricity customers.
Xcel has about 1.4 million electricity customers in Colorado.
