It’s clear why families nationwide are increasingly anxious about their monthly power bill. Residential retail electricity prices rose by roughly 40% between 2021 and 2025. Nationally, electricity bills are rising faster than inflation and are also among the biggest drivers of inflation. The Trump administration has even promised to decrease power bills (with mixed results).
Colorado, at least so far, has largely been spared from the stratospheric increases seen elsewhere. In 2024, the state had the third-lowest average residential monthly electricity bill in the U.S., at around $101. Xcel Energy, Colorado’s largest utility, and Gov. Jared Polis often tout the state’s comparatively low power costs.
But the beginnings of a price spike may already be here. Between March 2021 and March 2026, the average Colorado residential energy bill has increased by around 30%, according to the Electricity Price Hub. Tens of thousands of Coloradans owe utilities like Xcel Energy millions of dollars after falling behind on their bills.
Recent investments in the power grid could push up costs over the coming decades. State regulators at the Colorado Public Utilities Commission estimate that average residential electricity rates — the actual price of power — could increase by 55% in 2029, compared to 2024 levels, and potentially much more.
The Blame Game
This situation has led to finger-pointing among politicians, regulators, pundits, scientists and utility leaders. The back-and-forth is often derided as an unproductive “blame game” because there’s no single factor pushing up energy bills.
But what if the “blame game” had some clear rules and snazzy graphics? In other words, what if it was an actual game?
Enter Colorado Public Radio’s “Energy Bill Blame Game.” The goal is to help readers explore the factors behind their rising power bills.
Here’s how it works: When you select your top three reasons for rising bills in our interactive game below, your results will be recorded to help inform our future coverage. When you scroll down the page, you’ll then have a chance to learn more about each factor and tell us how high energy costs are impacting you. Your answers will inform CPR’s future coverage.
Xcel Energy cites modernizing its grid to prepare for extreme weather as a top reason for why it plans to spend billions over the next five years. Much of that cost will be passed down to ratepayers. Weather events outside Colorado can also boost local electricity bills. A leading example is Winter Storm Uri, which sent temperatures plummeting across Texas in the winter of 2021. Colorado ratepayers paid for the resulting spike in natural gas prices for months afterwards.
Data centers are the energy-hungry facilities behind the AI boom. Capable of gobbling up more power than entire cities, utilities may be forced to build additional power plants and transmission lines to meet demand, and pass those costs down to ratepayers. At the same time, adding deep-pocketed tech companies to the grid could also help spread out the cost of electricity, potentially cutting residential prices. Policymakers are considering options to limit the impact, such as charging different rates to large power users or requiring tech companies to build their own renewables.
It’s the most unglamous part of the sprawling energy grid: the aging grid of poles and wires connecting homes and businesses across the continent. That infrastructure, however, is a leading factor behind rising energy bills. Much of it is decades old, and over the last two decades, the price of maintaining poles, wires and other equipment has skyrocketed due to extreme weather and rising supply costs. Some researchers cite the trend as the leading factor pushing up electricity costs nationwide.
While Colorado is rapidly shifting to renewables, fossil fuels accounted for 59% of the state’s electricity generation in 2024. That’s why swings in natural gas prices still impact energy bills. In addition, the Trump administration has ordered utilities such as Tri-State Generation and Transmission to keep operating coal plants past their retirement dates. Since power providers haven’t planned for those costs, ratepayers could end up getting stuck with the tab.
It’s now often cheaper to add solar and wind to the grid than fossil fuels. Colorado, however, has ambitious climate targets, part of the reason Xcel Energy has pledged to spend close to $12 billion on new renewable projects and power lines between now and 2030. Depending on how regulators handle those costs, households and businesses will inevitably pick up some of the tab. That’s why some studies have found that states with strict renewable energy targets — like Colorado — can expect a steady rise in power prices. Advocates argue, however, that the shift will also improve air quality, slow climate change and insulate consumers from volatile fossil fuel costs.
Catastrophic wildfires — plus the litigation and claims that follow — have already driven some utilities to bankruptcy. It’s one reason why many utilities are spending billions of dollars to prevent blazes and protect their equipment. Last year, Colorado state regulators approved Xcel’s nearly $2 billion plan to prevent its equipment from sparking fires. That includes funds to buy AI cameras, bury powerlines, clear dry vegetation and replace aging equipment. Customers are already paying for some of those activities through a separate charge on their bills. Ratepayers also help utilities brace for wildfires by paying for their rapidly increasing insurance coverage.
Most U.S. residents get their electricity from investor-owned utilities like Xcel — monopolies that raise money by promising profits for shareholders. Over the past few years, Xcel’s profit margins have been steadily increasing, and its parent company raked in more than $2 billion in profit in 2025. Some advocacy groups argue that utility profits are pushing up rates and should be reined in by regulators. Xcel and trade groups representing investor-owned utilities vehemently disagree.
Electrification is a catch-all term for consumers moving from fossil fuels to electricity. Under Gov. Jared Polis, Colorado has put the transition at the center of its climate plans, offering incentives for electric vehicles, induction stoves and to all-electric home heat pumps. That might cut or eliminate natural gas bills. But homeowners also often end up paying for more electricity. And utilities like Xcel could end up spending more to bolster the power grid to guarantee increased electricity for its customers. Some states are exploring creative solutions, like a separate electricity rate for homes heated and cooled with heat pumps.
Worried? Curious? Annoyed? We want to hear from you!
