The Colorado Public Utilities Commission reached a final decision September 4, 2026, significantly reducing Xcel Energy's proposed natural gas rate increase, saving ratepayers 35 percent from the originally requested total.

Xcel Energy filed its Natural Gas Rate Case proposal, Proceeding No. 25AL-0538G, on December 29, 2025, stating the rate hikes were necessary to fund critical infrastructure, modernize the system, and support Colorado's clean energy transition. The Commission approved a settlement agreement filed July 13, reducing the annual revenue increase to $122.7 million from the original $190 million proposal.

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For residential customers, the approved increase is 8.6 percent, or $5.16 per month, compared to Xcel's original proposal of 11.4 percent, or $7.59 per month — a reduction of 24.56 percent from the original request. Small business customers will see a 9.2 percent monthly increase of $22.76, down from Xcel's original request of 13.0 percent, or $36.47 per month — a reduction of 29.23 percent.

The Commission also approved a $5 million shareholder-funded contribution to Xcel's Gas Affordability Program. The funds will come from Xcel Energy's corporate profits, not from customer rates, and will provide increased bill credits and stronger protections against service disconnections for income-qualified customers.

The new rates take effect October 6. A final written decision will be issued around October 1. Once issued, any party to the rate case has twenty days to file an appeal with the Commission requesting reconsideration of aspects of the decision.

More information about Proceeding No. 25AL-0538G, including the settlement agreement and recordings of two public comment hearings, is available at https://puc.colorado.gov/gas-rate-cases#xcel-gas-rate-case

Consumer resources, including the Colorado Energy Savings Navigator — a free online tool identifying energy assistance, rebates, incentives, and programs for Colorado families — are available at https://puc.colorado.gov/energy-savings and https://puc.colorado.gov/for-consumers