There is a line on your Xcel bill called the “Electric Commodity Adjustment”. Today, it is a little over 30% of your electric bill. This is where Xcel passes their coal and natural gas costs onto you. If the prices of natural gas and coal skyrocketed tomorrow, your bill would go up but it wouldn’t affect their bottom line at all. This creates perverse incentives for Xcel to rely on fuel based generation, while we bare the risk of increasing fuel prices.
We think that Xcel should have some skin in the game.
That’s why we’ve been educating citizens of Colorado about this split-incentive. Clean Energy Action has been focused on the electric commodity adjustment ever since we realized that a price on carbon, which we believe is vital for Coloradans’ future, could be passed on directly to rate-payers through the electric commodity adjustment without making Xcel shift their generation towards renewable sources.
Citizen Power Trainings
We have started holding trainings with community members in order to breakdown these energy market issues, empower folks to engage in making change, and teach you how to inspire others with your story. We want people to feel empowered to make change – whether that means going to talk with your local representative or your friends and neighbors – we want you to have the tools to effect change.
Request a Training for Your Community
Face the Risk Resources
Read our explanation of the electric commodity adjustment and how it affects your bill.
Or explore the Electric Commodity Adjustment through our new video genre, folksy wonk: