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Colorado's Xcel Energy Proposes Large-Load Tariff to Shield Residential Ratepayers from Data Center Costs
CO
Data Centers / Utility Regulation
April 14, 2026
Source: Axios
Xcel Energy submitted a proposal to the Colorado Public Utilities Commission for a large-load tariff — a rate structure requiring large electricity users like data centers to pay rates and infrastructure costs proportional to their demand, rather than spreading those costs across all customers. According to the Smart Electric Power Alliance, 60 electric utilities in 36 states now have or are developing large-load tariffs.
The proposal comes amid significant public opposition to data centers in Denver and Colorado Springs. Denver's City Council may approve a one-year moratorium on new data centers as soon as next week. Colorado Springs Utility has already approved a large-load tariff, and Black Hills Energy in southern Colorado is considering another.
Ann Collier of SEPA described the tariff as “a seat belt with extra safety provisions.” The Colorado PUC has not set a timeline for consideration.
Community Takeaway
Large-load tariffs are emerging as the single most concrete mechanism for ensuring residential ratepayers don't subsidize industrial-scale electricity users. Cheyenne, Wyoming already operates one that protects residents from Microsoft's data center costs ([see today's Cheyenne story →]). Communities negotiating with data center developers should ask whether their local utility has or is considering a large-load tariff. If not, Colorado's filing and Wyoming's working model provide templates to bring to your public utility commission. A large-load tariff sets separate rates, terms, and conditions for customers whose electricity demand is equivalent to powering thousands of homes.
Source: Axios, April 14, 2026.