In a recent episode of Independence Institute’s* PowerGab energy podcast, hosts Amy Cooke and Jake Fogleman look at Xcel Energy’s request for a massive electricity price hike in Colorado (originally $355 million, now pared down to roughly $245 million). The duo zero in on why utility bills keep rising, and how decisions made years ago are now hitting ratepayers hard.
Cooke argues that rate hikes are “lagging indicators,” the result of layers of policy choices, regulatory approvals, and energy mandates dating back more than a decade. She points specifically to the Colorado Energy Plan and the decision to accelerate retirement of coal-fired power plants, with the Public Utilities Commission (PUC) prioritizing emissions reductions over affordability.
The two discuss the relationship between regulated monopoly utilities, policymakers, and regulators, pointing out that Xcel’s incentives have aligned with state environmental goals. Xcel gets guaranteed returns on approved build-outs, while progressive policymakers get “green” energy and emissions reductions targets. According to Fogleman and Cooke, ratepayers are now absorbing the costs of that arrangement through higher energy prices.
The hosts also push back on claims that new electricity demand from data centers is responsible for current rate hikes, arguing today’s increases are tied to past policy and investment decisions, not future growth.
You can see the entire episode on You Tube, or watch it below.
