Xcel Energy Rates Colorado 2026: What Homeowners Can Do Now

TL;DR: Xcel Energy Rates Colorado 2026: What Homeowners Can Do Now

💡Xcel Energy rates in Colorado are proposed to increase by about 9.9 percent starting in August 2026, which could add roughly $10 per month to a typical $100 electric bill.

💡This electricity rate increase is driven by grid upgrades, clean energy investments, and wildfire risk and safety improvements across Xcel’s Colorado system.

💡A higher Xcel bill is not automatic. You can start reducing your electric bill now with better thermostat settings, air sealing and insulation, LED lighting, and a professional home energy audit.

💡Long term, high efficiency heat pumps, electrical panel upgrades, weatherization, and smart controls can significantly cut how much you pay, even if Xcel Energy rates in Colorado continue to rise.

💡Colorado homeowners may qualify for Xcel Energy home energy rebates, the Colorado HEAR program, and federal tax credits, which can greatly reduce project costs.

💡Cu Solutions helps Denver Metro homeowners plan and install safe, code compliant electrical and HVAC upgrades, and can guide you through which rebates and incentives apply to your home.

Xcel Energy Rate Increase 2026: What Colorado Homeowners Need to Know + How to Save

Xcel Energy just proposed a nearly 10 percent increase in electric rates for Colorado homes, and it could hit your bill as soon as August 2026. If you are asking how this will affect Xcel Energy rates Colorado homeowners pay every month, you are not alone.

Cu Solutions is here to break down what this means, what you can do right now, and how smart electrical and HVAC upgrades can help you get ahead of higher prices.

Breaking news: Xcel Energy proposes a 9.9% electricity rate increase for August 2026

On November 21, 2025, Xcel Energy filed a new electric rate case with the Colorado Public Utilities Commission. If regulators approve the proposal as filed, average residential Xcel Energy rates in Colorado would rise about 9.93 percent, starting in August 2026. Xcel estimates that a typical home with a $100 monthly electric bill would see that bill go up by about $9.94 per month.

Key points:

⚡Proposal filed: November 21, 2025

⚡Requested increase: About 9.9 percent for residential customers

⚡Typical impact: About $9.94 more per month on a $100 bill

⚡Proposed effective date: August 2026, if approved

⚡Status: Proposed, not final. It must go through a full Colorado Public Utilities Commission review and public input process.

You can see Xcel’s own breakdown on the Xcel Energy Colorado electric rate review page, where the utility explains that this increase is meant to recover recent investments in grid reliability, system upgrades, and cleaner energy resources.

What the proposed electricity rate increase means for your monthly bill

Everyone’s usage is different, but a roughly 9.9 percent increase gives us a good way to estimate.

Xcel’s filing uses a $100 monthly bill as an example and projects that bill would increase by about $9.94, to just under $110 per month.

Using a 9.9 percent increase for simple estimates, here is what that might look like for different households:

If your current bill is about $80 per month

• Increase: about $7.92

• New bill: about $87.92

If your current bill is about $120 per month

• Increase: about $11.88

• New bill: about $131.88

If your current bill is about $150 per month

• Increase: about $14.85

• New bill: about $164.85

If your current bill is about $200 per month

• Increase: about $19.80

• New bill: about $219.80

Over a full year, even a $10 per month increase adds up to around $120 extra per year. For many families in Denver, Aurora, Lakewood, Arvada, Littleton and the rest of the Denver Metro area, that is not pocket change.

This is exactly why it is smart to start planning now. The earlier you cut waste, the more you can blunt the impact of higher Xcel Energy rates in Colorado.

Why Xcel Energy rates in Colorado are going up

Xcel is a regulated utility, so it cannot raise rates on its own. It has to file a rate case and prove to the Colorado Public Utilities Commission that higher charges are needed to cover reasonable costs.

In its 2025 Colorado electric rate review, Xcel points to several major drivers behind the proposed 2026 increase:

Grid upgrades and reliability

Over the last three years, Xcel Energy reports investing heavily to:

⚡️Modernize and upgrade distribution and transmission lines

⚡️Replace aging equipment

⚡️Improve resilience during Colorado’s severe weather and high wind events

⚡️Reduce outage frequency and speed up restoration

These types of investments are common reasons utilities file rate cases. They argue that updated infrastructure keeps the grid safer, more reliable, and better able to handle extreme conditions.

Clean energy and electrification

Xcel is also investing in cleaner energy resources and new infrastructure to support things like:

⚡️Heat pumps

⚡️EV charging

⚡️Large-scale renewable projects such as wind and solar

These projects are part of long term clean energy and carbon reduction plans in Colorado.

Wildfire risk and system safety

Across the western United States, electric utilities are under pressure to harden their systems against wildfire risk. That can involve:

⚡️Rebuilding or undergrounding lines in high risk areas

⚡️Replacing or upgrading poles and equipment

⚡️Using new technologies for monitoring faults

Xcel recently agreed to pay about $640 million to settle lawsuits related to the 2021 Marshall Fire, although the company has said insurance will cover part of that and that customers will not directly pay for settlement costs.

Even separate from any specific case, stronger wildfire prevention and system hardening efforts tend to increase overall grid costs, which can show up in future rate plans.

Regulatory process and fuel costs

On top of infrastructure investments, your bill is also affected by:

⚡️Fuel costs to generate electricity

⚡️Federal and state policy requirements

⚡️Regulatory decisions on how quickly utilities can recover their spending

All of these pieces flow through the Colorado Public Utilities Commission process before they show up on the final Xcel Energy rates Colorado homeowners pay.

Timeline: When could higher Xcel Energy rates take effect?

It is important to remember that this is a proposal, not a done deal.

According to Xcel’s 2025 Colorado Electric Rate Review filing:

⚡️The utility filed its request with the Colorado Public Utilities Commission on November 21, 2025.

⚡️The proposal asks for new electric rates to start in August 2026.

⚡️The case will go through a full regulatory review, including:

• Detailed financial and technical analysis

• Input from consumer advocates and other stakeholders

• Public comment and hearing opportunities

Independent coverage suggests the Commission’s decision is expected around Q3 2026, but that timing can shift.

In the meantime, you can track updates on the Xcel Energy Colorado electric rate review page or by following news from the Colorado Public Utilities Commission.

What you can do right now to reduce your electric bill

You do not have to wait until August 2026 to start saving. The decisions you make this season can soften the impact of any electricity rate increase, both now and in the future.

Here are practical steps you can take immediately.

1. Understand your current usage

Log in to your Xcel account and:

⚡️Look at your last 12 months of bills

⚡️Note your highest usage months

⚡️See how much you are using during peak hours if you are on a Time of Use plan

Xcel’s Energy Colorado residential Time of Use rates currently charge higher prices during weekday evening peak hours. Shifting laundry, dishwashing, and EV charging away from those hours can help reduce your bill even before any new rate takes effect.

2. Adjust thermostat settings

For most homes with traditional HVAC systems, the U.S. Department of Energy recommends:

⚡️Winter: Set your thermostat around 68°F when you are home and awake. Lower it when you are asleep or away.

⚡️Summer: Aim for around 78°F when you are home, and raise it a few degrees when you are out.

Energy.gov notes that dialing your thermostat back 7 to 10 degrees for at least 8 hours per day can save you up to 10 percent per year on heating and cooling costs.

If you have a heat pump, the settings can be a little more nuanced. In many cases, maintaining a moderate, steady temperature works better than big setbacks. A smart thermostat installed and configured by a professional can help optimize your system automatically.

3. Seal and insulate your home

According to EPA and ENERGY STAR, air sealing and adding insulation can save the average homeowner about 15 percent on heating and cooling costs and around 11 percent on total energy costs.

High impact areas include:

⚡️Attic insulation

⚡️Air sealing around doors and windows

⚡️Sealing gaps where plumbing or electrical penetrates walls and ceilings

You can handle simple weatherstripping or caulk yourself, but for bigger jobs and anything near electrical wiring, it is safer to work with a qualified contractor.

4. Switch to efficient lighting and smart controls

Some quick, lower cost upgrades:

⚡️Replace remaining incandescent or halogen bulbs with ENERGY STAR certified LEDs

⚡️Use smart power strips on TV and computer setups

⚡️Add basic occupancy sensors or timers in rooms where lights are accidentally left on

Over the course of a year, these changes can meaningfully cut the part of your bill that is most sensitive to Xcel Energy rates in Colorado.

5. Schedule a professional home energy evaluation

A home energy audit can identify:

⚡️Where your home is losing the most energy

⚡️Which upgrades will deliver the biggest savings

⚡️Whether your electrical panel and wiring are ready for future electrification

Xcel Energy offers rebates for certain types of professional energy audits, covering a portion of the cost for qualifying customers.

For any major electrical improvements identified in that audit — such as a new circuit, upgraded wiring, or panel work — you should always use a licensed, insured electrician. Cu Solutions provides electrical services in the Denver Metro area that are designed to be safe, code compliant, and ready for today’s higher electrical loads.

Long term solutions: Energy efficiency upgrades that can outlast rate hikes

Short term behavior changes are helpful. Long term, the most reliable way to stay ahead of rising Xcel Energy rates in Colorado is to use less energy for the same comfort.

This is where strategic electrical, HVAC, and solar improvements come in.

High efficiency heating and cooling

Heat pumps are one of the biggest opportunities. Modern air source heat pumps can deliver up to two to four times more heat energy than the electricity they consume, which can cut electricity use for heating by up to 50 percent compared to older electric resistance systems.

Benefits:

⚡️Heating and cooling in a single system

⚡️Better humidity and comfort control

⚡️Often lower operating costs over time, especially when paired with good insulation

The Department of Energy notes that heat pumps are now a strong option even in colder climates, when designed and installed correctly.

Electrical panel and wiring upgrades

As homes add heat pumps, EV chargers, and sometimes battery storage or solar, the load on the main electrical panel increases. Many older homes in Denver, Aurora, Lakewood, Littleton, and surrounding cities still rely on 100 amp panels that are not sized for modern electrification.

In many cases, homeowners will eventually need an electrical panel upgrade in Colorado to safely support:

⚡️New HVAC equipment

⚡️Level 2 EV charging

⚡️Future solar and battery systems

⚡️Additional circuits for remodels or basement finishes

Cu Solutions specializes in panel upgrades, circuit additions, and whole home electrical modernization that follow the National Electrical Code and Colorado permitting requirements.

Home weatherization and envelope improvements

Sealing air leaks and upgrading insulation are some of the most cost effective measures to permanently reduce energy use. ENERGY STAR’s guidance on ENERGY STAR home energy improvements highlights air sealing, duct sealing, and insulation as “critical first steps” before tackling bigger equipment upgrades.

These upgrades tighten your home’s envelope so:

⚡️Your heating and cooling system works less

⚡️Indoor comfort improves

⚡️You get more value out of high efficiency HVAC equipment

Smart thermostats and controls

Once your equipment and envelope are in good shape, controls help you stay on track:

⚡️Smart thermostats can automate Energy Department recommended setback strategies.

⚡️Smart plugs and load controllers can delay EV charging or other flexible loads outside Xcel’s highest priced Time of Use windows.

These solutions do not stop the electricity rate increase, but they change how sensitive your bill is to Xcel Energy rates in Colorado.

Colorado rebates and incentives: where Cu Solutions shines

Upfront project costs can be the biggest barrier to making energy saving upgrades. The good news for Colorado homeowners is that there has never been more support available.

Many of these incentives are stackable, which means smart planning can dramatically reduce your out of pocket cost. Incentive rules change, and funding is limited, so always confirm current details directly with the administering program.

1. Xcel Energy home energy rebates

Xcel offers a wide range of rebates that can apply to:

⚡️Air source and cold climate heat pumps

⚡️Heat pump water heaters

⚡️High efficiency furnaces and AC systems

⚡️Insulation and air sealing

⚡️Home energy audits

The utility’s Xcel Energy home energy rebates page is the best starting point to see current offers, bonus programs, and eligibility requirements.

Recent program updates include structures like the Whole Home Efficiency Program, where customers who complete multiple qualifying measures within a set time frame can earn a bonus rebate on top of standard incentives.

2. Colorado Energy Office HEAR rebates

In November 2025, Colorado launched the Home Electrification and Appliance Rebate (HEAR) program to help income qualified households electrify and weatherize their homes. For eligible Coloradans, HEAR can provide up to $14,000 in rebates for measures such as:

⚡️Cold climate heat pumps for space heating and cooling

⚡️Heat pump water heaters

⚡️Electric stoves and clothes dryers

⚡️Insulation and air sealing

⚡️Electric panel and wiring upgrades

These rebates are typically delivered as upfront discounts through registered contractors rather than as checks after the fact.

For more details, review the Colorado Energy Office Home Electrification and Appliance Rebate (HEAR) program information provided through official channels and partner organizations that work with the state.

3. Federal tax credits and Home Energy Rebates Program

On top of state and utility rebates, federal incentives can significantly improve the economics of upgrades:

⚡️The Energy Efficient Home Improvement Credit (Section 25C) provides a 30 percent tax credit for qualifying improvements like certain heat pumps, electrical panels tied to efficiency upgrades, and insulation, subject to annual caps.

⚡️The national Home Energy Rebates Program from the U.S. Department of Energy is working with states, including Colorado, to support home efficiency and electrification with additional rebates focused on reducing energy use.

What about ROI?

Every home is different. The Department of Energy and NREL have found that, when properly designed, many heat pump and efficiency retrofits can be cost effective over their lifetime, especially when combined with envelope improvements and incentives.

For example, EPA and ENERGY STAR estimate that air sealing and insulation alone can save about 11 percent on total energy costs. If your annual electric bill is $1,800, that level of savings would be about $198 per year.

Stacking that with high efficiency HVAC, heat pumps, and upgraded controls can further reduce your exposure to any electricity rate increase, although actual savings depend heavily on your home, equipment, and usage patterns.

Cu Solutions can help you interpret recommendations from an energy audit and prioritize upgrades that make sense for your specific Denver Metro home and budget.

How Cu Solutions can help you prepare for higher Xcel Energy rates in Colorado

Cu Solutions is a licensed, full service electrical, HVAC, solar, EV charging, and remodeling contractor serving homeowners throughout the Denver Metro area.

Here is how we can support you as Xcel Energy rates in Colorado change:

Electrical system checkup

💡Assess whether your existing panel can safely support new loads

💡Plan an electrical panel upgrade in Colorado if needed for heat pumps, EV chargers, or future solar

HVAC and heat pump planning

💡Evaluate the age, efficiency, and sizing of your current system

💡Recommend right sized, high efficiency replacements for Colorado’s climate

Home electrification roadmap

💡Coordinate electrical, HVAC, and solar considerations

💡Sequence projects so you can take advantage of current rebate timing and funding

Code compliant installation

💡Install new circuits, wiring, and equipment safely, following Colorado code and permitting rules

💡Provide documentation that many rebate programs require

Cu Solutions is committed to transparent pricing, clear communication, and safety first work on every project.

If you want a local partner who understands both the technical side and the realities of Xcel Energy rates in Denver Metro and nearby cities in Colorado, Cu Solutions is ready to help.

You can learn more about Cu Solutions and our licensed technicians by visiting our website.

👉 Schedule your visit today and contact Cu Solutions to get started.

Frequently asked questions about the 2026 Xcel Energy rate increase

Will the 2026 Xcel Energy rate increase in Colorado definitely happen?

Not yet. The 9.9 percent increase is a proposal, not a final decision. Xcel Energy filed its 2025 Colorado Electric Rate Review on November 21, 2025, and the Colorado Public Utilities Commission will now review it, take public input, and decide whether to approve, deny, or modify the request. If the Commission approves the rates as filed, the new Xcel Energy rates in Colorado would start in August 2026.

How much will a 9.9 percent Xcel Energy electricity rate increase add to my monthly bill?

According to 2025 Colorado Electric Rate Review, Xcel’s own estimate is that a typical home with a $100 monthly bill would see that bill increase by about $9.94, to just under $110 per month. Using a simple 9.9 percent estimate, an $80 bill would go up roughly $7.92, a $150 bill would rise about $14.85, and a $200 bill would rise about $19.80. Your actual increase will depend on your usage, rate plan, and any future changes by the Commission.

What can I do right now to reduce my Xcel Energy bill in Colorado?

You can start with low cost, high impact actions:

⚡️Follow Department of Energy thermostat guidance, aiming for around 68°F in winter and 78°F in summer with reasonable setbacks.

⚡️Seal air leaks and improve insulation where practical to cut heating and cooling waste, following EPA and ENERGY STAR recommendations on air sealing and insulation.

⚡️Switch to LED lighting and use smart power strips on entertainment and office setups.

⚡️Avoid running major appliances during the highest priced windows under the Colorado Residential Time of Use Rate.

⚡️Schedule a professional energy audit to pinpoint the most cost effective improvements for your home

For any electrical changes, hire a licensed electrician instead of attempting DIY electrical work.

Which home upgrades qualify for Colorado energy rebates and incentives?

Commonly rebated upgrades in Colorado include:

⚡️Air source and cold climate heat pumps

⚡️Heat pump water heaters

⚡️High efficiency furnaces and AC systems

⚡️Insulation and air sealing

⚡️Electric panel and wiring work connected to efficiency or electrification

⚡️Home energy audits

Programs that may support these upgrades include Xcel Energy home energy rebates, the Colorado HEAR program for income qualified households, and federal tax credits under the Energy Efficient Home Improvement Credit. Specific eligibility rules vary by program, income, equipment, and location, so always confirm details with each administrator.

Can I combine Xcel Energy rebates with Colorado HEAR rebates and federal tax credits?

In many cases, yes, but there are important rules. Current guidance from the U.S. Department of Energy, the U.S. Treasury, and Colorado program administrators indicates that:

⚡️Colorado’s HEAR rebates can often be combined with federal Energy Efficient Home Improvement Credits, but you must calculate the 25C tax credit on your project cost after subtracting any HEAR or other rebates.

⚡️Colorado HEAR and HER rebates may be combined with the Colorado heat pump tax credit and Xcel Energy rebates when you meet each program’s eligibility limits.

⚡️Xcel Energy’s rebates are offered in addition to federal IRA rebates and tax incentives, and federal tax credits are generally calculated as 30 percent of the remaining project cost after applicable rebates.

A typical stacking looks like:

1. Upfront discount from HEAR for income qualified customers

2. Xcel Energy rebate or bonus for qualifying equipment

3. Federal tax credit based on your net project cost after rebates

Because funding is limited and rules change frequently, homeowners should always confirm current stacking rules, caps, and timing with the program administrator and talk with a qualified tax professional about their specific situation.

How can Cu Solutions help me prepare for higher Xcel Energy rates in Colorado?

Cu Solutions can:

⚡️Evaluate your current electrical system and HVAC equipment

⚡️Recommend and install upgrades such as panel replacements, new circuits, and high efficiency heating and cooling systems

⚡️Coordinate with your energy auditor’s recommendations

⚡️Provide proper documentation and code compliant installations that many rebate programs require

As a local contractor serving Denver, Aurora, Lakewood, Arvada, Centennial, Thornton, Littleton, Highlands Ranch, Englewood, Parker and surrounding communities, Cu Solutions understands both the technical side of home electrification and the realities of Xcel Energy rates in Colorado.

For help planning upgrades around your budget and the latest incentives, contact Cu Solutions to schedule a consultation.

Recommended good reads from Cu Solutions

If you want to go deeper on saving energy, planning upgrades, and getting your home ready for changing Xcel Energy rates in Colorado, these published guides are a great next step:

Colorado Home Energy Rebates With Cu Solutions

Learn how the Colorado Home Energy Rebate Program works, who may qualify for HEAR and HER rebates, and which electrical, HVAC, panel, wiring, insulation, and heat pump upgrades Cu Solutions can help you plan as a registered program contractor in the Denver Metro area.

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Need an electrician in your area? Learn when to upgrade your panel, how to compare electrician quotes, and why online Reddit advice isn’t enough in Denver.

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Expert Lighting & Wiring Services in Denver, Aurora & Nearby Areas | Cu Solutions

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Sources

▶️ Xcel Energy 2025 Colorado Electric Rate Review and customer notice
https://www.xcelenergy.com/company/rates_and_regulations/rates/rate_cases/2025_colorado_electric_rate_review
https://www.xcelenergy.com/staticfiles/xe-responsive/Company/2025-CO-Electric-Rate-Review-Customer-Notice.pdf
https://my.xcelenergy.com/s/billing-payment/electric-rate-review

▶️ Xcel Energy Electric Rate Review overview and residential rate plan information
https://my.xcelenergy.com/s/billing-payment/electric-rate-review
https://co.my.xcelenergy.com/s/billing-payment/residential-rates
https://co.my.xcelenergy.com/s/billing-payment/residential-rates/residential-plan

▶️ ENERGY STAR and EPA guidance on air sealing and insulation savings
https://www.energystar.gov/saveathome/seal_insulate/why-seal-and-insulate
https://www.energystar.gov/saveathome/seal_insulate/methodology

▶️ U.S. Department of Energy Energy Saver resources on thermostats, weatherization, and heat pumps
https://www.energy.gov/energysaver/programmable-thermostats
https://www.energy.gov/energysaver/weatherize
https://www.energy.gov/energysaver/air-source-heat-pumps

▶️ Colorado Home Electrification and Appliance Rebate (HEAR) program and Home Energy Rebates updates
https://www.energy.gov/sites/default/files/2024-09/doe-hear-customer-journey_092424.pdf
https://www.energystar.gov/partner-resources/state-and-tribal-rebate-programs/hear-program
https://www.cpr.org/2025/11/13/colorado-home-energy-rebates/

▶️ Xcel Energy and partner resources on Colorado residential rebates and Whole Home Efficiency incentives
https://co.my.xcelenergy.com/s/residential/home-rebates
https://unicolorado.com/wp-content/uploads/2025/03/25-01-313-CO-Res-Rebate-Summary-IS_8.pdf
https://reenergizeco.com/xcel-energy-whole-home-efficiency-program-guide-to-colorado-home-energy-rebates/