Judge recommends Xcel be allowed to increase rates to absorb costs of 2021 cold snap

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Judge recommends Xcel be allowed to increase rates to absorb costs of 2021 cold snap
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A ruling from an administrative judge in Colorado recommends that Xcel Energy be allowed to add a temporary fee for Colorado customers

While the ruling is not final, it serves as recommendation to Colorado’s Public Utilities Commission to vote to allow an extra monthly cost—referred to by the company as an Extraordinary Gas Cost Recovery Rider—for up to 30 months.

“I was shocked, basically,” said Brian Treacy, an Xcel customer living in Westminster. “I’ve never seen an incident like this happen. I’ve seen the rate increases, but nothing paying for a shortfall for a cold freeze that we prepared to pay for a year—but not for another state.” This is not the first time Coloradans have been asked to shoulder the increased energy costs from last year’s cold snap. In April of last year, several customers with other utility companies reached out to Denver7 reporting bills that were hundreds and even thousands of dollars higher than normal. The rate increases would not be that high under this temporary rider for Xcel Energy; even still, Treacy said he’s angry.

“We get cold weather here, and we’re prepared to pay for it—but, not because somebody else doesn’t get cold weather,” Treacy said, referring to Texas’s grid failure during the ice storm. Governor Jared Polis criticized the judge’s decision in a statement, saying he is “disappointed that utility providers are able to balance their financial loss on the backs of consumers, when extra costs could have been avoided by better early warning systems for customers to voluntarily reduce energy usage.” He called on the Public Utilities Commission to establish specific usage reduction plans to avoid “any extraordinary fees for future events.

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