Xcel Alerts Colorado to Upcoming Storm-Related Price Hike
The recent cold wave affecting Colorado has prompted Xcel Energy to inform its customers about an impending increase in utility bills. This announcement affects approximately 1.6 million residents across the state.
Xcel Energy’s Price Hike Due to Cold Weather
Xcel Energy has warned that customers could see an additional charge of up to $1 per month for the remainder of the year. This increase is primarily a result of rising costs for wholesale natural gas attributed to the current cold temperatures.
Context of Rising Energy Costs
The spike in natural gas prices began in late January 2026 as extreme weather affected supply chains and production. Prices at a significant Louisiana distribution hub surged from around $3 to over $8 within a short span.
Previously, Xcel requested over half a billion dollars in rate increases from state regulators to address infrastructure and renewable energy expenses. These adjustments include:
- A 9% increase in electricity rates announced in November, expected to add around $10 to the average residential bill, aimed at generating $356 million for infrastructure improvements.
- An 11.4% increase in natural gas prices, set to raise average monthly bills to $74.41, starting this October, with a target total increase of $190 million.
Customer Guidance and Impact
Xcel Energy has provided tips for customers to mitigate bill impacts during this period. Recommended strategies include:
- Lowering thermostats to conserve energy.
- Opening blinds during the day for natural light and closing them at night to prevent drafts.
While the current bill adjustments are not expected to be drastic, the Colorado Office of the Utility Consumer Advocate described the recent price increases as “out of touch” with the ongoing inflation struggles faced by consumers.
This impending surge in utility costs serves as a reminder of the intricate relationship between weather patterns and energy prices. Xcel Energy will report these adjustments in their quarterly “Electric Commodity Adjustment,” which reflects direct fuel costs passed to customers.
