The Colorado Public Utilities Commission is the state body that sets what Xcel Energy may charge its customers. On October 21, 2026, it began hearings on Xcel’s proposed rules for very large new customers. The hearing runs October 21, 22, 26, 27 and 28, and the commission has not set a date for its decision. PUC A tariff is a utility’s filed list of prices and service terms. Under the commission’s rules, a suspended tariff does not take effect while the hearing and decision are pending. PUC tariff rules
What Xcel asked the commission to approve
Xcel filed its proposal on April 2, 2026. The filing would create a new customer class, called Schedule TL, for new or expanded sites that draw 50 megawatts or more. Customers using between 20 and 50 megawatts may also be covered. A megawatt measures how much power a site draws at one time. One 100 megawatt site running around the clock uses about as much electricity as 65,000 homes. EDCC panel Under the proposal, these customers would pay for the power lines, connection upgrades and new power plants needed to serve them. Daily Energy Insider
What a large customer would have to commit to
The commission’s staff summarized the main terms of the filing. A customer would sign a contract of at least 15 years and pay a minimum monthly bill set at 80 percent of its contracted capacity. It would also owe exit fees if it leaves and post a financial guarantee. PUC staff letter A minimum bill means the customer pays that amount every month even if it uses less power. Xcel’s own example is a 500 megawatt AI data center whose minimum monthly bill could be $22 million. The guarantee could equal 60 months of minimum bills. A customer that leaves early would owe the sum of the monthly bills left on its contract. Colorado Sun
Costs also start before any power flows. Xcel proposes a new $120,000 application fee and would raise the price of a system impact study to $250,000. A customer would also pay up front for equipment built only for its site. PUC staff letter A system impact study is Xcel’s engineering review of which grid upgrades a new customer would need. PUC staff report
| Term | Current tariff | Under Xcel’s proposal |
|---|---|---|
| Who is covered | Large users billed in existing customer classes | New class for 50 megawatts or more, possibly 20 and up |
| Application fee | No large customer application fee | $120,000 per request |
| System impact study | Lower study price | $250,000 per study |
| Contract length | No minimum term in the tariff | At least 15 years |
| Minimum bill | No minimum bill in the tariff | 80 percent of contracted capacity |
| Leaving early | No exit fee in the tariff | All monthly bills left on the contract |
Who pays for upgrades to the shared grid?
Commission staff protested that the proposal gives a new customer no up front price signal about where it builds. Xcel’s own study found up to $1.24 billion in added upgrades to the shared grid caused by new customers concentrated in the Denver metro area. Staff asked the commission to order surcharges or credits that depend on whether a large customer connects inside or outside the Denver area. Xcel had proposed handling location later, in a separate process with outside groups. PUC staff letter
The parties also disagree on contract length. Commission staff recommends 20 years, and the Data Center Coalition, an industry group, proposed 10 years. Colorado Sun Google’s expert testified that Xcel’s cost method would make large customers overpay by $517 million over six years in one growth scenario, with the extra lowering other customers’ rates. Walmart supported the 15 year term and asked for a longer notice period before a customer can end its contract. Rocky Mountain Voice
Can a developer skip the standard terms?
Xcel also proposes custom contracts, which are confidential deals negotiated between Xcel and one developer outside the standard tariff. Xcel first called this the speed to market pathway. The commission and other parties would have 120 days to review each custom contract. Xcel’s regulatory policy director testified that a custom contract would keep the core terms, including cost responsibility and minimum commitments. The state’s consumer advocate office said the short window and the confidential details would limit outside review. Colorado Sun Elected officials and members of the public criticized the pathway at the commission’s August public comment hearing. RTO Insider
The commission suspended Xcel’s requested May 3 effective date in April. PUC decision So none of these terms applies yet to a developer seeking service in Xcel’s territory. The tariff the commission finally approves may differ from the version Xcel filed. Law firm analysis
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