Amidst one of the highest inflation rates in the nation, the Colorado chapter of America’s biggest group advocating for older people on Tuesday urged energy regulators to deny Xcel’s proposal to hike natural gas rates by nearly $189 million over three years.

The rate hike, if approved, would mean Xcel residential customers would pay nearly $100 more each year.

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“This is ridiculous,” said Angela Cortez, a spokesperson for AARP Colorado. “Xcel has hiked utility bills year after year and their customers are tired of this. Many older adults need heat and cooling to survive, and we’re not seeing Xcel shareholders taking the hits consumers are forced to take on an ongoing basis.”

She said customers should contact the Public Utilities Commission to relay their opposition to the plan. The PUC is holding an online Zoom meeting to take public comments on the proposal this Thursday.

The company maintained that the rate hikes are necessary.

“The company is filing this rate case because Public Service continues to make fundamental infrastructure investments to serve customers, consistent with its obligation to provide safe, reliable service while working to advance our vision for the future of the gas system,” Xcel’s legal notice filed with the PUC said.

According to an Xcel information sheet on the request, the rate proposal includes “new pricing plans designed to help drive carbon reductions at customers’ homes or businesses,” as well as various “pipeline integrity programs” and changes to infrastructure to “reduce methane and carbon dioxide emissions” on its natural gas system.

Energy prices in the Denver area have increased by 24.7% in the last 12 months as of May, according to the federal Bureau of Labor Statistics. The inflation hike is estimated to cost Colorado consumers nearly $11,000 annually.

Under the proposal, residents’ annual energy bills would increase nearly $100, according to the AARP.

Starting this November, $4.16 would be added to residential customers’ gas bills. Bills would go up another $1.83 in 2023 and then another $2.15 in 2024 for a cumulative increase of $8.13, or 13% per month for three years.

An Xcel information sheet says under this proposal, the company would not seek additional rate increases that would take effect before November 2025.

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This latest rate increase request comes atop recent rulings by the Colorado Public Utilities Commission allowing Xcel to bill customers for $2 billion worth of new high-voltage power lines, $500 million to pay for natural gas expenses arising out of the Valentine’s Day winter storm in 2021, and $10.7 million for wildfire mitigation.

AARP Colorado, which represents about 670,000 older Coloradans, calls adding the successive rate increases “pancaking.”

PUC regulations and state law allow regulated utilities to come to the PUC to add “riders” – which are expenses the company wants to bill consumers for that are not included in their regular energy plans that commissioners approve every four years – whenever they want.

Jake Fogleman, energy policy analyst at the Independence Institute, a Denver think-tank, said the “pancaking rate increases could not be more poorly timed.”

“The PUC has already allowed Xcel to get away with a half-billion in new ratepayer money this year even though it was determined the company was negligent during Winter Storm Uri,” Fogleman said. “Now, Xcel’s back for more as Coloradans are still reeling from inflation. This will keep happening until the PUC says enough is enough.”

Colorado’s energy regulators in late June approved Xcel Energy’s request to recover $500 million in extraordinary fuel costs incurred during the four-day winter freeze in 2021, even as they expressed misgivings at how Colorado’s biggest utility company handled the cold snap.

Xcel noted that during the winter storm it maintained delivery of energy to customers to keep their homes warm and businesses running.

“However, even careful operations and planning could not fully insulate our customers from an unprecedented nationwide spike in natural gas prices between Feb. 13 and Feb. 19, 2021,” the company said.

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The effects of Winter Storm Uri drove natural gas prices to unprecedented levels due to capacity and delivery problems, as well as the extraordinary demand for the fuel.

In granting Xcel’s request to charge customers half a billion dollars, the Public Utilities Commission also ignored Gov. Jared Polis’ frustration at the enormous bill his constituents will have to pay at a time of soaring inflation.

The remote public comment hearing is on Thursday, August 18 from 4 p.m. to 6 p.m.

The Zoom video conference can be accessed at the following link:

https://us06web.zoom.us/j/85644556311?pwd=NXNXdXhKcm10N1RNWC9OYUtDYmt4dz09

Meeting ID: 856 4455 6311

Passcode: 042332