The Colorado legislature is setting its sights on the skyrocketing energy bills crushing households throughout the state, creating a special committee to investigate what’s going on.

Senate President Steve Fenberg, D-Boulder, and House Speaker Julie McCluskie, D-Dillon, announced Thursday they are forming a joint select committee tasked with determining the cause of rising utility rates in Colorado and identifying potential solutions to prevent future hikes. 

“The recent spikes in energy prices have sent Coloradans’ utility bills through the roof, and it’s costing too many working Colorado families an arm and a leg just to heat their homes,” Fenberg said. “We’re convening this critical committee so we can uncover the root cause behind high prices and hopefully find solutions that will better protect consumers, improve stability, and save people money on their energy bills.”

In a January presentation, the state Public Utilities Commission reported that a typical Xcel Energy customer saw a 25% increase in their electricity bill and a 75% increase in their gas bill compared to the same time last year. 

PUC chief economist Erin O’Neill blamed the rising prices largely on the cost of natural gas, which rose by 40%, and the use of natural gas, which rose by 30%. O’Neill also cited two state actions that directly increased utility prices: rate hikes approved by Colorado energy regulators and the state allowing Xcel to charge customers $500 million for fuel costs incurred during a four-day winter freeze in 2021. 

PUC commissioners expressed alarm about the number of complaints they have received about soaring bills, calling it “unprecedented” and a “level of pain in the consumer community” not seen since the 1970s energy crisis. 

They also heard from irate customers last month, some of whom accused Colorado’s energy regulators of abandoning the interests of the public.

Lakewood resident Eva Boyd excoriated the commissioners for what she said is their failure to look after the public’s interests.

“I’ve been living here for about 26 years,” Boyd said. “January 2022’s bill was $124. December 2022 was $194. The next one that I’m going to pay in February is $295, which to me is absolutely mind-boggling.”

The legislature’s committee formation comes after Gov. Jared Polis last week directed the PUC to find ways to limit bill spikes and provide immediate relief to Colorado businesses and residents. In response, a coalition of energy businesses, labor unions and non-profit organizations said its members are offering concrete help to Coloradans.

“Shockingly high utility bills have left Coloradans from Denver to Dillon struggling to heat their homes during the coldest time of the year,” McCluskie said. “We need to get to the bottom of what’s sticking hardworking families with unpredictable and far too expensive utility bills.”

The Joint Select Committee on Rising Utility Rates will meet at least three times, including Democrat and Republican lawmakers from both chambers and testimony from utility companies, relevant agency staff, regulators, consumer advocates and policy experts. 

Once the committee’s investigation is over, it may suggest actions for the legislature to take to address the issue.