Xcel Energy Implements New 'Time of Use' Rates Next Month; Some Customers Could See Bills Go Down, Some May Go Up

DENVER (CBS4)- More than 300,000 Xcel Energy customers in Colorado with Smart Meters will start seeing a change in their bills next month as the utility implements "Time of Use" rates that will charge more for electricity during peak times and less during off-peak times.

"Lower-income families that use less energy will likely see bills increase," said Andrew Bennett, Director of Advocacy for Energy Outreach Colorado, a state-sponsored nonprofit organization that provides energy assistance to Coloradans.

Bennett said the new structure might mean lower bills for homes with higher energy usage.

The new rate plan will charge higher rates during the peak hours of 3 p.m. to 7 p.m. on weekdays. Rates would be slightly less during the "mid-peak" period from 1 p.m. to 3 p.m. on weekdays and the lowest, off-peak rates will run from 7 p.m. through the night and early morning hours until 1 p.m. the next day.

Hollie Velasquez Horvath, Xcel's Regional Vice President of State Affairs and Community Relations, said "What we're trying to do is encourage customers to rebalance their use so we can flatten and reduce that high peak demand."

Xcel Energy installed some 310,000 Smart Meters in Colorado homes by the end of 2021 and is installing about 15,000 per week in 2022. The plan is for all Xcel customers to have Smart Meters by the end of 2025. Customers receiving Smart Meters in 2022 and beyond will be phased into the TOU rates in the spring and fall of each year.

In a news release, Alice Jackson, president of Xcel Energy-Colorado, said "We're excited to give customers new ways to manage their energy bills while helping Colorado build a clean energy future."

The utility said a pilot TOU program in Colorado showed most customers with a slight decrease in their bills or bills that stayed about the same.

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Customers can opt-out of a smart meter and get a non-communicating meter that will need to be read manually and will lead to a monthly meter reading fee.

During the summer months, with the TOU rates, it will be a 180% difference in cost between using electricity during peak vs. off-peak hours. During the winter months, the difference between those two tiers is 70%.

Additional info and tips to save on the new TOU rate structure:

• Avoid using major electric appliances like dishwashers, air conditioners, clothes washers and dryers during on-peak times(weekdays between 3 p.m. and 7 p.m., excluding holidays)
• Install a programmable thermostat to automatically control your air conditioner and furnace. Program it to heat up or cool down your home before peak hours.
• Don't run your dishwasher right after dinner but run it later at night during off-peak hours
• Do laundry on the weekend or before 3 p.m. and after 7 p.m. on weekdays
• Charge electric vehicles overnight

LINK: Xcel Energy Smart Meters