Winter cold: An abandoned cabin shed depicts the future for those who can’t afford heat. PHOTO BY OMAYRA ACEVEDO[/caption]

Imagine paying an average energy bill of $300 most of the year, and in a few months, your $300 a month more than triples. Unfortunately, this is something many Xcel Energy consumers don’t have to imagine.

Many Colorado residents have been struggling to pay heating costs, which for some have quadrupled, since 2020. Xcel’s base rate service charges alone have tripled since 2020, and with approval from state regulators, a recent spike in November left consumers shocked and their services at risk of penalties, service termination, collections, and legal action.

Why such a drastic increase in service charges? According to state regulators, energy companies are only allowed to turn a profit when they build new infrastructure, like utility poles, power plants, or new transmission lines.

The initial approval for companies to turn a profit began during the early part of the 20th century. The arrangement was a way to “connect more people to gas and power systems without allowing companies to exploit a captive set of customers.”

An anonymous source states, “Much of the increase stems from higher prices for natural gas, which is used to heat and power homes during colder months.” Companies like Xcel rely more and more on natural gas, influencing the approved proposals to recoup costs from purchasing fossil fuels.

The Colorado Public Utilities Commission approved a company proposal to recover over $500 million it spent on high natural gas costs during a winter storm. The proposal means that Xcel will collect a new fee, listed as “EGCRR” through customers’ energy bills, for up to 30 months.

Prices in August 2022 nearly doubled what they were during the same month the prior year. With record-breaking production and consumption forecasted in the nation, and labor challenges, energy companies feel they are left with no choice but to increase their fees to continue providing service.

The gas supply market, where many utility companies purchase their gas, is not and has never been regulated. This is currently under investigation by the federal government for potential price manipulation.

Xcel Energy claims the need to raise over $188 million through rate increases to upgrade its natural gas infrastructure, fund programs to better insulate buildings, and detect pipeline leaks, part of the reason for skyrocketing fees.

Under the current approved proposal and system, a utility company can bill customers for day-to-day operating costs, like delivering electricity and paying workers, but can’t charge more than they spend.

Xcel’s plan to “reduce the monthly impact on customers,” is to spread the costs over more than two years. A spokesperson at Xcel shares, “Natural gas rates are expected to keep increasing each year through 2025.”

If this is the case, how much higher will energy bills get? Will some of our friends, family, neighbors, and children be left out in the freezing cold? Is the solution less fracking or more solar power aid for those who need help heating their homes?

To learn more about the Colorado Public Utilities Commission visit https://puc.colorado.gov/. To learn more about Xcel Energy’s rate increases visit https://co.my. xcelenergy.com/s/about/newsroom/ press-release/xcel-energy-submitsnew-energy-costs-for-first-quarterof-2023.