PSCo “Tiered” Rates

We have a two-tiered rate structure for our residential customers where the cost for 0-500 kilowatt hours (kWh) used during a month is 4.6 cents per kilowatt hour (kWh). For use that exceeds 500 kWh per month, the cost is 9 cents per kWh. 

Tiered rates are in effect during the summer months from June 1 through September 30.

The two-tiered summer rate structure was implemented in 2010 at the request of the Colorado Public Utilities Commission (PUC). The rationale for tiered rates is that they more accurately reflect the higher cost of providing summer electricity service to our customers. It also sends a better price signal to our customers when making energy efficiency decisions.

The lower tier rate of 4.6 cents is charged for all your energy use for the eight non-summer months (October 1 through May 31) when tiered rates are not in effect.

Not necessarily. If you use up to 820 kilowatt-hours per month from June through September, you would pay less under the tiered rates structure than you would pay in the absence of tiered rates. In fact, more than 70 percent of our customers pay less under the summer plan than if we didn’t use two tiers and charged a flat summer rate.

No. The rates are designed to collect no more and no less than our cost of service as approved by the PUC. Additional revenue generated from the higher summer rate applied to usage above 500 kWh will be offset by the lower rate applied to both summer usage below 500 kWh and all usage during the other eight non-summer months.

On the June and October bills only, three new line items under the “Residential General” portion of your bill will reflect the implementation of tiered rates. 

The first line shows non-summer (before June 1) electricity use. The next two lines show June use charged at each of the two tiered rates.

On July through September bills, there will only be two new lines – Summer Tier 1 and Summer Tier 2 – since, unlike in June and October, there is no non-summer electricity use.

Because most customers’ billing periods don’t coincide with a calendar month, your June and October bills will be prorated. This means your June bill could show May electricity charges at just the lower tier of 4.6 cents and June electricity charges at both 4.6 cents and the higher rate of 9.0 cents. In October, the reverse is true. Your October bill could show the two tiers reflecting electricity used in September and also the single lower tier for use starting Oct. 1. We want to be sure you’re correctly charged for your energy as we transition on and off tiered rates.

See the company's Tiered Rates Proration Methodology.

Only residential customers are charged tiered rates, but businesses are subject to other rate structures that include increased charges for summer use.

Your energy use is the single biggest factor affecting your electricity bill. Conservation is the easiest way to manage your energy budget. We have a variety of energy-savings tips, no-cost and low-cost solutions and rebate programs to help you conserve on our website. You also can call us at 1-800-895-4999 to speak with one of our customer service representatives or send an email to inquire@xcelenergy.com. 

You also can compare your current electricity use with last summer’s and estimate what this summer’s use might be by signing up for My Account on xcelenergy.com.

If you anticipate or are having a difficult time paying your energy bill – or know someone who is – please call us right away at 1-800-895-4999. We can create a payment plan to help you catch up on your bill plus provide information about our energy assistance programs and about state and non-profit energy assistance funds.

Customers interested in looking at their electricity use last year and tracking their current energy use can sign up for My Account. Learn about the variety of energy-saving tips, no-cost and low-cost solutions and rebate programs we offer on our website, or call us at 1-800-895-4999.