Changes Ahead for Xcel's Time-of-Use Rates
Changes are coming to Time-of-Use electric rates in Xcel Energy territory. The rates were originally proposed by environmental groups and the solar industry to charge more accurately for what energy costs at different times of day, and to encourage use of renewables. Regulators at the Colorado Public Utilities Commission made the rates the default method of charging for electricity when new meters were installed over the past few years and now want to evaluate whether they are working as well as possible. Properly designed Time-of-Use rates could help minimize the purchase of new gas turbines.
Xcel has asked regulators to expand the On-Peak (most expensive) period for most rates from 3-7pm year- round to 3-9pm in the summer (June through September) and 5-9pm in the rest of the year.
The state's largest utility is also asking to eliminate the shoulder (medium price) periods from residential and commercial rates and reduce the price ratios between Peak and Off-Peak periods for residential customers.
Among groups that plan to intervene before the Colorado Public Utilities Commission is the Colorado Renewable Energy Society. CRES wants to examine whether the proposed changes will help reduce energy demand during peak periods and whether they will match energy patterns as more solar, wind and storage projects come online.
Intervenors are also expected to question whether the longer peak period is too much of an inconvenience for residential customers.
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