Denver, CO

Denver residents see a 37% spike in Xcel energy bills and they're about to go up again

Kristen Walters

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Woman surprised when looking at utility bills.Maya/Getty Images (Canva Pro license.)

If you are one of the thousands of Denver residents who saw a massive spike in your January Xcel utility bill, you are not alone. Due to a recent spike in the price of natural gas, some Colorado residents report that their January Xcel bill was 37% higher than the previous bill for December. For many Denver households, that works out to an increase of $100 or more per month in heating costs alone.

While consumers might feel justified to get upset with local utility providers over the increased costs, one report explained that Xcel buys natural gas at wholesale prices but does not mark them up. Essentially, customers pay what they pay. Therefore, when the global cost of natural gas increases, the cost to the consumer or end-user goes up as well.

According to recent reports, the price of natural gas in the US spiked by a record 70% at the end of January. You can bet that this price increase will be passed on to residents who rely on natural gas to heat their homes.

To make matters worse for Xcel customers, the company will be adding a 14% Rate Deferral Surcharge to customers' utility bills starting in March. The reason for the added increase is that the company was approved for a rate increase back in 2020. However, because of the global health crisis, Xcel opted to hold off on the increasing customers' rates at that time.

Luckily, many residents tend to use less natural gas in the spring and summer months, so the increase might not be felt as hard as if it were implemented during the winter months when heating bills are the highest.

Have you seen a change in your January utility bills?

If so, how have these increases impacted your household?

Let us know in the comments.

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