Xcel Energy proposes another gas rate hike as temperatures continue to drop

As the temperature drops, the price tag for people's heating bill goes up, but it's not just increased use that's affecting prices right now.

Xcel Energy introduced gas rate hikes weeks ago, and those changes are hitting some Coloradans' wallets hard during the holidays.  

Now, the company is asking for an increase in electric rates as well to strengthen the grid and continue the move away from fossil fuels. 

Some opponents, who have flooded the emails and voicemails of decision-makers recently, believe the proposed increases are an example of a monopoly passing costs off onto its customers.  

"We're being squeezed," said Cathy Meserole, an Xcel customer.  

After 45 years in her Centennial home, Meserole's Xcel Energy bills have never been this high.

Living on a fixed income, she's now trying to cut back by leaving lights off and limiting the heat but making ends meet is still at times a difficult task.  

"It's squeezing me out of money I need just to buy food, clothing, pay for my car insurance," Meserole said. "Nobody should have to do without the conveniences that they're used to doing. It's part of everyday living and how much more can we keep cutting back?" 

Meserole is among more than 1 million Xcel customers in Colorado who are navigating rising utility costs.  

This fall, the company raised gas rates, though not as high as originally proposed. Now, it's asking the Colorado Public Utilities Commission to raise electric rates too. 

The proposal would cost the average residential customer $7.33 more a month (8.2%), and the average small business $10.16 more (7.77%). 

"This is an ongoing problem," said Bill Levis, a volunteer consultant for AARP and a former Executive Director of the Office of Consumer Counsel for the State of Colorado. "This electric case that's been suspended is at least the 5th rate case in the last four and a half years." 

According to Levis, who has intervened in past rate cases before the PUC, the constant increases hurt seniors and lower-income Coloradans the most. 

"Sometimes you have to write it off against your shareholders, and unfortunately, electric utilities and gas utilities haven't been doing that," Levis said. "In the monopoly world, unfortunately, the company asks their customers to do that." 

This week, commissioners shared some concerns at a PUC meeting, choosing to suspend the rate hike, set a hearing for February, and scrutinize it more than ever before.  

Regarding coal supply issues, the commission laid out a potential path forward where Xcel separates the issue so customers would not have to pay the associated costs starting Jan. 1. 

"I really think Xcel needs to step back and focus on customer satisfaction instead of nickel and diming us with these onerous rate increases that are just pancaking and adding up," commissioner John Gavan said. 

Robert Kenney, president of Xcel Energy Colorado said the money is needed to strengthen the grid, improve programs, and replace infrastructure.  

"I think for some of our customers, there's no time that's a particularly good time for a rate increase, and we totally understand and respect that," Kenney said.  

"We ask for the dollars that we need for the investments that we need when we need to make them, and we take seriously our role of being good stewards with the customers' dollars," he added.

While routine for these cases, the commission's decision to set a hearing comes as complaints about the proposal pile up. This week, one commissioner called the number of complaints coming in "unprecedented," and the Office of Utility Consumer Advocate has received more complaints this month than the rest of the year combined.  

"I think the right word is outraged," director Cindy Schonhaut said. 

According to Schonhaut, the office will fight the proposal by Xcel.  

"By seeking to continually increase rates in a world of such high inflation and their exorbitant profits, to me is basically a rip-off, and we really don't want to see that happen," she said.  

With little more to spare on bills, Cathy Mesrole hopes someone will step in.  

"I think it's about time the PUC stopped approving all of this," Meserole said. "Start thinking of us."  

Kenney says there is help available for people who are struggling to pay their bills. You can learn more by calling 1-800-895-4999 or visiting https://bit.ly/3WYei5l.  

While the PUC hearing on the proposal is set for February, customers can still send in their complaints and feedback to commissioners. 

The public can submit written comments through the Commission's E-Filing System at https://bit.ly/3I0dIzM, by emailing dora_puc_website@state.co.us, or by mailing in their thoughts to Colorado Public Utilities Commission at 1560 Broadway, Suite 250, Denver, CO 80202.  

Members of the public can also call 303.869.3490 to leave oral comments.