Colorado utility regulators to decide whether Xcel's data center tariff proposal protects customers
The Colorado Public Utilities Commission is beginning hearings on Xcel Energy’s proposed tariff for data centers and other customers requiring at least 50 megawatts of power. Consumer and environmental advocates want stronger protections against rate increases, grid stress and fossil-fuel use, while business and data center groups are seeking greater flexibility.
The Colorado Public Utilities Commission is set to consider Xcel Energy’s proposed large-load tariff, which would establish fees, long-term electricity commitments and cost protections for new data centers and other customers requiring at least 50 megawatts. Xcel estimates data centers could require 2 gigawatts of generating capacity by 2030, and its proposal would require projects to cover the grid costs they create, maintain minimum electricity payments and provide credit guarantees.
Consumer and environmental advocates, including the Western Clean Energy Campaign and Western Resource Advocates, are urging the commission to strengthen the proposal and limit reliance on natural gas generation. Xcel and business groups support more flexible confidential contracts, including a proposed speed-to-market pathway, while the Colorado Office of the Utility Consumer Advocate and community groups have raised concerns that the process could shift costs and risks to existing customers. Hearings are expected to continue for several days as Colorado communities also debate moratoriums and caps on data center development.