Colorado had no requests last quarter

Electric and gas utilities sought a record $9.2 billion in rate increases nationwide during the second quarter, according to a new analysis by the consumer advocacy organization PowerLines, as utilities continue seeking billions for grid upgrades, reliability improvements and growing electricity demand.

The filings would affect more than 56 million customers and push this year’s total requested rate increases to $18.6 billion, the consumer advocacy group said.

Colorado was largely absent from the report’s tally of second-quarter rate requests because Xcel Energy’s major electric rate case was already pending before the Colorado Public Utilities Commission.

The utility originally sought $356 million in additional annual revenue, but a June settlement reduced the request to about $225 million. If approved, the settlement would increase residential electric bills by an estimated 5.86%, or about $6.13 per month.

Colorado’s other major investor-owned utilities did not announce comparable new base-rate filings during the second quarter.

Southern utilities accounted for $4.5 billion of the nationwide requests, affecting about 26.1 million customers, according to the PowerLines analysis.

Investor-owned utilities nationally plan at least $1.4 trillion in capital expenditures by 2030, the report said.

PowerLines’ first-quarter report documented an additional $9.4 billion in requested rate increases affecting more than 81 million customers.

PowerLines said utilities have accelerated rate requests in recent years as they replace aging infrastructure, improve system reliability and meet growing electricity demand, including from large data centers.

Rate cases often take months or longer to resolve. When regulators approve rates with an earlier effective date, utilities may later recover the difference between the old and new rates through a one-time adjustment on customer bills.

In Colorado, the Public Utilities Commission evaluates proposed utility investments, requested returns and customer bill impacts before determining whether requested increases are justified.

The proposed Xcel settlement includes bill credits, expanded assistance for income-qualified customers and additional performance accountability measures.

The commission is expected to issue a final decision on the settlement during the third quarter.