Xcel Energy Seeks Two Rate Hikes in Colorado Amid Customer Backlash

Utility company cites infrastructure costs, but some customers say profits are too high.

Published on Feb. 27, 2026

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Xcel Energy, a major utility provider in Colorado, is requesting approval from the Public Utility Commission to raise electric rates by nearly 10% per month and gas rates by 11% per month this year. The company cites the need to cover the costs of building and maintaining infrastructure, but some customers are frustrated, arguing that Xcel's $2.24 billion in profits in 2025 should be sufficient to fund these improvements without overburdening ratepayers.

Why it matters

The proposed rate hikes come at a time when many Coloradans are already struggling with the rising cost of living. Some customers feel that Xcel's focus on profits over providing affordable public services is unacceptable, and they are calling on lawmakers to step in and implement stricter regulations on the utility company.

The details

Xcel Energy recorded $2.24 billion in profits in 2025, according to the company's annual earnings report. Frustrated customers argue that this level of profitability should be enough to cover the cost of infrastructure improvements without the need for significant rate increases. The utility company, however, maintains that the investments are necessary to ensure reliable, clean, and low-cost energy for its customers.

  • Xcel Energy is requesting the rate hikes in 2026.
  • If approved, the electric rate increase would begin in August 2026, while the gas increase would start in October 2026.

The players

Xcel Energy

A major utility company providing electric and gas services in Colorado.

Heidi Leathwood

A frustrated Xcel Energy customer who participated in protests against the proposed rate hikes.

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What’s next

The proposed rate hikes must be approved by the Colorado Public Utilities Commission before they can take effect.

The takeaway

This dispute highlights the ongoing tension between utility companies' need to invest in infrastructure and customers' desire for affordable energy. As Xcel Energy seeks to balance reliability, sustainability, and affordability, lawmakers may need to step in to ensure that ratepayers are not unfairly burdened by rising costs.