By Nico Brambila | Colorado Politics
Xcel Energy’s slogan makes this promise: “Our energy. Your power.”
Denver voters will have the power in November when they decide whether to approve a new 20-year franchise agreement with the utility. But even if they say no, they will continue paying the 3% franchise fee on their electric and natural gas bills.
The reason?
A provision on page 22 of Denver’s existing 20-year agreement with Xcel says that, if the franchise is not renewed, the utility must continue paying the city an amount equal to the franchise fee as long as Xcel continues using Denver’s public rights-of-way to provide service. The agreement expires Dec. 31.
Colorado law requires the Public Utilities Commission (PUC) to order utilities to recover municipal franchise payments from customers in that municipality through a PUC-approved surcharge.
So, while the franchise agreement requires Xcel to pay Denver 3% of its gross revenues, Xcel recovers that payment from Denver customers. Economically, the cost is borne by ratepayers — not the utility.
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