With some members calling it a flawed proposal, the Denver City Council have rejected asking voters to consider a 20-year franchise agreement with Xcel Energy in the November election.
The council voted 7-6 Monday to take time to rewrite the agreement and give Denver residents a chance to weigh in on the document that will help guide decisions in such areas as increasing the use of clean energy to power homes and businesses and keeping the lights on across the city.
Council members who voted against the agreement said there are two more city elections before the current agreement with Xcel expires at the end of 2026.
Councilwoman Stacie Gilmore, who represents District 11, said she appreciated the work of the council members who helped write a companion piece to address concerns raised by community members and activists when the council gave the agreement preliminary approval in July.
“But it’s not good enough,” Gilmore said.
a nonpartisan, multi-faith organization, spearheaded opposition to the agreement on grounds that people who would be most affected — working-class families, low-income residents, the elderly and people of color — had been cut out of the process.
Jeff Ackermann, a former chairman of the Colorado Public Utilities Commission and volunteer with Together Colorado, said Denver showed leadership in 2006 by negotiating a companion agreement that produced tangible benefits for city residents, especially low-income households.
“Today, we face even greater challenges: extreme heat, threats to federal energy assistance, and a growing affordability crisis,” Ackerman said in a statement. “Why would we rush forward without taking the time to negotiate meaningful solutions?”
Xcel Energy spokeswoman Michelle Aguayo said Xcel is disappointed that Denver residents won’t be able to vote on the franchise agreement in November.
“We have served the City and County of Denver for more than 100 years and worked for more than two years in reaching this franchise agreement, which was negotiated and supported by several city leaders who work closely with Xcel Energy,” Aguayo said in a statement. “We will continue to serve our Denver customers with the clean, safe, reliable and affordable energy they rely on as we determine next steps and bring it back for consideration in 2026 in conjunction with the expiring of the current agreement.”
The city is committed to ensuring that Xcel Energy is a good partner to the city and residents, said Jordan Fuja, spokeswoman for Mayor Mike Johnston.
“We will continue to work with Denver City Council and Xcel to incorporate community feedback and bring forward a new franchise agreement that delivers the services our residents deserve,” Fuja said in an email.
Council members who voted against the franchise agreement said the council had been left out of most of the process. Amanda Sandoval, council president, helped write the companion document that focused on how the city and Xcel would collaborate in several areas and voted for the franchise agreement. But she expressed frustration with not having more information along the way.
Councilwoman Shontel Lewis, who represents District 8, said the agreement gave Xcel Energy “a lot of leeway.” Under the proposal, the utility had no obligation to share data, improve customer service or use clean energy sources beyond exploring options, Lewis said.
“I do not think that this is the best we can do as a city and I do not think that this process, where council was excluded from the bargaining table up until two weeks ago, has led to a fair agreement,” Lewis added.
Xcel Energy and state regulators have fielded numerous recent complaints about power outages in various parts of the metro area and the company’s customer service. A report released by the Public Utilities Commission staff earlier this year showed a big jump in the time that Xcel customers didn’t have power in 2024 compared to previous years.
Another report highlighted complaints about customer service, including problems with receiving bills and getting through on calls to the company.
“This is why we hear from our consumers that they’re frustrated with Xcel,” said Sarah Parady, an at-large council member. “I think it’s extremely easy for us to say ‘Letap use next year and try and do a better job.’ Part of the way we do a better job is to involve the community, make sure people understand what they’re voting on.”
