The Colorado Public Utilities Commission approved a settlement that significantly reduces Xcel Energy's natural gas rate increase request, cutting the utility's proposed annual revenue increase by 35 percent.
The PUC approved the settlement on September 4 in Proceeding No. 25AL-0538G, limiting the annual revenue increase to $122.7 million, down from Xcel's original request of $190 million. Xcel filed the rate proposal on December 29, 2025, saying the increases were necessary to fund critical infrastructure and modernize the system.
For residential customers, the impact is reduced to an 8.6 percent monthly rate increase of $5.16, compared to Xcel's proposed 11.4 percent increase of $7.59. Small business customers will see a 9.2 percent monthly rate increase of $22.76, compared to the utility's requested 13.0 percent increase of $36.47.
The PUC also approved a $5 million contribution from Xcel Energy's corporate profits to the Gas Affordability Program, which will provide bill credits and protections against service disconnections for income-qualified customers. These funds will not come from customer rates.
The new rates take effect October 6. A final written decision from the PUC will be issued around October 1. Any party to the rate case has 20 days from issuance to file an appeal requesting reconsideration of aspects of the decision.