The Colorado Public Utilities Commission approved a $157 million annual rate increase for Xcel Energy, reducing the company's original request for $356 million by 56 percent. The approved increase will result in a 4.77% bill increase for residential customers, or $5 per month, effective August 29, according to the commission.
The decision includes a package of consumer protections that expand benefits under Xcel's Percentage of Income Payment Plan (PIPP), which limits monthly bills to a percentage of a customer's income. The commission capped maximum energy costs for PIPP-eligible, income-qualified customers receiving both gas and electric service at 2.5% of household income, reduced from the previous 6% level.
The order also eliminates power shutoffs for nonpayment for all active PIPP participants and prohibits involuntary disconnections for income-qualified customers referred by specific assistance programs. It removes a $100 monthly benefit cap per customer and restricts down payment requirements for energy-burdened customers.
Additional protections include Xcel Energy contributing $10 million in shareholder funds to the PIPP program ($5 million electric, $5 million gas), a new $20 monthly bill credit for income-qualified seniors ages 65 and older, and direct application acceptance for the PIPP program. The commission directed staff to open a proceeding to examine utility disconnection patterns in Xcel's service territory to inform a pilot program for vulnerable customers.