Utility makes near-record profits from its electric and gas operations in Colorado even as it seeks to raise rates
by Allen Best
Xcel Energy took in record profits last year across its eight-state service territory. In its Colorado operations, it would have been a record year if not for getting dinged for $294 million to settle litigation provoked by the Marshall Fire of December 2021.
As it was, Xcel’s Colorado gas and electric operations, which is Xcel’s largest and most lucrative subsidiary, according to critics, produced $678 million in profits for shareholders. Only the profits of 2024 were greater.
That much profit, say a handful of environmental organizations, is too much. They have called on the Colorado Public Utilities Commission to rein in Xcel. The utility currently has applications for two rate increases. Those electricity rate hikes would yield the company $356 million. Proposed gas rate increases would deliver $190 million.
The numbers were delivered by a handful of environmental organizations after scrutinizing a new filing with the Securities and Exchange Commission and other documents.
“We are outraged that Xcel Energy is celebrating massive profits in 2025 while Colorado moms sit at their kitchen tables wondering how they’ll afford their next energy bill,” said Sara Kuntzler, director of Mountain Mamas. “Families across our state are already stretched thin by rising costs, and now Xcel is seeking two more rate increases.”
“Enough is enough,” said Sarah Tresedder, a senior climate and energy organizer with the Sierra Club.
On the electric side, the utility has forecast in its Just Transition Solicitation that residential rates could increase by 50% in the next five years, mostly due to infrastructure Xcel spending, much of it required because of speculative demand from potential data centers.
On the gas side, Xcel’s Gas Infrastructure Plan proposal includes $2.85 billion in gas infrastructure investment between 2025-2029. The company projects gas rates increasing 60% by 2040 as compared to 2025.
A recent analysis from a group founded by former Consumer Financial Protection Bureau officials found more than 27,000 households in Colorado were behind on their utility bills, with an average debt of $626 in overdue charges. Xcel provides gas and electric to over half of Coloradans.
Xcel CEO Bob Frenzel was awarded more than $34 million in salary and benefits in 2023 and 2024. The company’s top five executives cleared more than $68 million combined over those two years, the groups said, citing Xcel Energy proxy statements for 2023 and 2024. Executive compensation data for 2025 have not yet been filed.
“Xcel’s profits in Colorado have skyrocketed over the past 20 years, while the amount of electricity they provide has remained the same,” said Heidi Leathwood of 350 Colorado. “It’s time to hold them accountable and make sure we pass laws and rules to keep costs low and take advantage of low-cost clean energy.”
Leathwood was among several individuals who protested behind a sign in front of Xcel Energy’s new Colorado headquarters in Denver’s RiNo district on Thursday morning.
Xcel has rapidly moved from coal generation in its Colorado operations. In 2025, just 18% of its electricity came from coal. Natural gas and wind were the largest sources of electricity, 36% and 35% respectively. Solar delivered 10%.
Altogether, 46% of Xcel Energy’s electricity delivered to its Colorado customers came from carbon-free sources.
The Securities and Exchange Commission filing also noted that the PUC in November approved Xcel’s plans that assume 3% compound annual sales growth through 2031 and needed additional generation capacity of approximately 5,400 megawatts.
The PUC in February approved procurement of up to 4,100 megawatts. The PUC in coming weeks or months will approve additional generating capacity as part of the Just Transition Solicitation.
Xcel, in its federal filing, also highlighted completion of two segments of its five-leg Colorado Power Pathway. The 550-mile transmission line will eventually loop broadly around eastern Colorado to deliver electricity from wind and solar generation to its customers, who are primarily in metropolitan Denver.
The route of the fifth and final leg, between Colorado Springs and metropolitan Denver, has been contested by local jurisdictions, El Paso and Elbert counties. The PUC is scheduled to issue a decision about that final leg in early April.
As for the Marshall fire, the SEC filings said that Xcel had become aware of 3,078 complaints on behalf of at least 4,087 plaintiffs. An initial trail on liability was scheduled to begin in September 2025. Prior to the trial, Xcel Energy, Qwest Corporation and Teleport Communications American reached settlement agreements.
The settlement requires Public Service Co., the Xcel subsidiary, to make settlement payments of $640 million. Approximately $350 million was funded by insurance coverage, leaving Xcel on the hook for $294 million.
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I am 100%in agreement and on board with this article. XCel is ripping off us Coloradoans and getting away with it is outrageous. The PUC is shamefully not doing their job. It looks like corruption to me. We, the ‘captive ‘customers, can not afford this abuse.
If data /AI Centers want to come to Colorado and will increase the need for Energy, and make XCel even richer, then THESE Companies should pay for XCel’s expansion to accommodate them, OR let XCel pay for it out of the outrageous profit and CEO salaries they have already grifted from Coloradoans.
If the AI/data centers don’t want to pay for XCel’s exorbitant expansion here, then they can go somewhere else where energy and cost of living is a lot more reasonable, or build their own Energy and water sources here and offer some competition to XCel.
Are there not laws against monopolies to prevent this kind of abuse of the public?