Quick answer: On August 19, 2026, the Colorado Public Utilities Commission (PUC) approved a $157 million electric rate increase for Xcel Energy. For the average Xcel residential customer, that works out to roughly $5 more per month — about $109.92 instead of $104.91 for a typical 601 kilowatt-hour bill. New rates are expected to take effect around the end of December 2026. This decision applies to Xcel Energy electric customers only — not to Colorado Springs Utilities, CORE Electric, United Power, or Colorado's other utilities.
What the PUC approved
Xcel Energy, Colorado's largest electric utility with about 1.6 million residential customers, filed for a rate increase in late 2025 to recover the cost of grid investments — transmission lines, substations, transformers, and wildfire-related upgrades. The case ran under PUC Proceeding No. 25AL-0494E.
Here's how the numbers moved over the course of the case:
- Original request (November 2025): roughly $350–365 million — which consumer advocates said would have been the largest electric increase in state history, adding about $10 to the average residential bill.
- Proposed settlement (June 2026): $225 million, negotiated between Xcel, PUC staff, unions, and large commercial customers — but opposed by the state's Office of the Utility Consumer Advocate, AARP Colorado, Energy Outreach Colorado, and the city of Boulder.
- Final approval (August 19, 2026): $157 million — less than half of what Xcel originally asked for, after the commission trimmed the settlement further based on depreciation and budget scheduling.
Parties to the case can still ask the commission for rehearing and reconsideration, so the final written decision could see minor adjustments.
What it means for your bill
- Average residential customers: about $5 more per month — from $104.91 to $109.92 for a typical 601 kWh bill (a roughly 4.8% increase). Your actual change depends on how much electricity you use and your rate schedule.
- Small commercial customers: a little under 5% more — about $164.37 per month for a typical 1,041 kWh bill, or roughly $7 more per month.
- Timing: new rates are expected to show up on bills around the end of December 2026.
Consumer groups note this is one of several Xcel increases since 2023, which is why even a "smaller than requested" increase lands hard on stretched budgets. These figures are averages tied to the usage assumptions above — your bill will vary with your own usage.
Does this affect you if you're not on Xcel?
No. This decision covers Xcel Energy's electric rates only. If your power comes from a municipal utility or co-op — like Colorado Springs Utilities, Fort Collins Utilities, CORE Electric, or United Power — your rates are set separately by your own utility's board or council. Not sure who serves your address? Our Colorado utility guides break down each provider, including how Xcel's net metering credits work for solar customers.
What rising rates mean for the solar math
Every rate increase changes the comparison between buying electricity from the grid and producing it from your own roof. When you install solar, the electricity your panels generate offsets power you'd otherwise buy at retail rates — so as those rates rise, the value of each kilowatt-hour your system produces rises with them. Xcel's full retail-rate net metering also means excess summer production is credited at the new, higher rates.
That said, solar isn't automatically the right answer for everyone. Whether it makes sense for you depends on your actual usage, your roof's orientation and shading, and your rate schedule — which is why we quote from your real roof and real bills rather than promising one-size-fits-all savings. Two honest starting points:
- Get a quick ballpark with our solar savings calculator — enter your monthly bill, utility, and roof direction.
- Read how we size and design systems on our home solar page, or compare payment options in our financing guide.
Frequently asked questions
When do the new Xcel rates start?
The increase is expected to take effect around the end of December 2026, so most customers will first see it on bills in early 2027. Watch your bill inserts — Xcel is required to notify customers of rate changes.
How much will my bill go up?
The often-quoted $5 per month is the average for a residential customer using 601 kWh. If you use more than that — common for larger homes, electric heat, or EV charging — your increase will likely be larger. Small businesses average about $7 more per month.
Why did the PUC approve less than Xcel requested?
The commission questioned the size of Xcel's capital spending plans and adjusted depreciation and budget scheduling, cutting the original request by more than half. Consumer advocates had opposed both the original filing and the $225 million settlement as too costly for households.
Is this the last increase?
No one can promise that. Xcel has separate proceedings under way, including a gas rate case, and utilities regularly file new rate cases as they invest in the grid. That trend — rates moving up over time — is a core part of why homeowners look at locking in their own generation.
Does solar eliminate my Xcel bill?
Not entirely. You'll still have a service connection and monthly fixed charges, and most homes still buy some grid power (especially in winter). What a well-designed system does is offset most of the energy portion of your bill — the part that just went up. Our Xcel net metering guide explains how the crediting works.
The bottom line
Xcel electric customers should plan for roughly $5 more per month (residential average) starting around the end of December 2026. It's a smaller increase than Xcel wanted, but it continues a clear trend: grid electricity in Colorado keeps getting more expensive. If you've been curious what your own roof could produce, a free, no-pressure quote from our local team will give you real numbers for your address — and an honest answer if solar isn't the right fit yet.