Proposed rates meant to make data centers pay own way, Xcel Energy says: Utility submits proposal to regulators for large data centers, other big users of electricity — The #Denver Post

Xcel Energy has submitted a proposal to the Colorado Public Utilities Commission (PUC) for a new rate class specifically targeting data centers and other large electricity users. The utility states its intention is to ensure these energy-intensive facilities cover their costs, thereby preventing residential and small-business customers from subsidizing them. The proposal mandates that data centers consuming at least 50 megawatts of electricity must sign 15-year contracts, provide financial assurance such as cash or credit, and pay substantial exit fees if they terminate service early. Potential large customers would also need to finalize service and interconnection agreements before being included in the utility's planning forecasts. Jack Ihle, Xcel’s vice president of data centers and large loads, indicated that the company aims to protect other customers from rate increases driven by large energy consumers. The Colorado General Assembly is simultaneously reviewing its own data center legislation, including bills for sales and use tax incentives and regulations for the industry. The PUC is expected to conduct months of hearings to gather public input on Xcel’s plan, which also incorporates a 'clean transition tariff' designed to incentivize data centers to invest in carbon-free technologies through credits for power generation.