Xcel says electricity costs to increase by $5 a month per household next summer
Xcel Energy plans to hike its rates for electricity across the board, but the bump in bills won’t happen until next summer.
In a filing Friday, the utility proposed a $174.4 million electricity rate increase for Colorado, which the company estimates will translate into an increase of a little more than $5 on the average home electricity bill starting next summer.
Specifically, Xcel predicts that electricity bills for typical residential customers will increase by $5.13 a month to $66.31, or 8.4 percent, based on the use of 625 kilowatt hours.
Small-business customers will likely see an increase of $7.84 a month to $105.83, or 8 percent, based on the use of 1,025 kilowatt hours, Xcel said.
The rate increase, Xcel said, is tied to Colorado’s expanding energy needs, Xcel’s continued work to reduce emissions, and the utility making improvements to the system to boost reliability.
While the current rate increase won’t be reflected until next summer, don’t expect utility bills to stay stagnant until then.
Xcel warns it will be filing its regular adjustment to natural gas costs next week, and another electricity adjustment is due next month.