Rising Electricity Costs in Colorado: A Consequence of Green Policies and Failed Economic Strategies
As Coloradans struggle to cope with the rising cost of living, the burden on their pocketbooks is further intensified by escalating electricity prices. This situation is compounded by Governor Polis' green policies, which are driving costs higher, and the failure of Bidenomics, impacting Americans and Coloradans alike. Let us explore the factors contributing to the increasing energy rates in Colorado.
Electricity Rate Hike
Xcel Energy, Colorado's largest electricity provider, is imposing an average rate increase of $4 per household, effective this month. This development follows the approval of a $96 million rate hike in 2022, even though Xcel Energy had originally requested a staggering $312 million increase.
The Consequences of Governor Polis' Green Policies
While embracing renewable energy sources is a commendable goal, the aggressive pursuit of green policies championed by Governor Polis is taking its toll on Colorado's electricity consumers. Approximately a quarter of the recent rate hike will go towards decommissioning five coal-fired power plants, a move driven by the governor's vision. Consequently, Coloradans will bear the cost of transitioning to alternative energy sources, despite the availability of cheaper options.
Missed Opportunity for Cost Management
The state Office of Utility Consumer Advocate presented a proposal to defer $48 million in costs associated with closing the coal-fired plants until the final closing date in 2031. This plan allowed for the consolidation of closure costs into a securitized bond, providing a more affordable approach to paying off the expenses. However, the Public Utilities Commission opposed this mechanism, arguing that it burdened future ratepayers without sufficient financial analysis. The commission's decision demonstrates the missed opportunity to mitigate the growing financial strain on Coloradans.
The Impact on Coloradans
With inflation already plaguing Colorado, this latest electricity rate increase exacerbates the cost-of-living burdens for the state's 1.6 million customers. The combination of rising electricity costs and persistent inflation further squeezes the budgets of hardworking families, leaving them with fewer resources for other necessary expenditures.
Failed Bidenomics
Beyond the state's specific policies, the failure of Bidenomics at the national level compounds the economic challenges faced by Coloradans. The current administration's approach, including excessive government spending and burdensome regulations, undermines economic growth and hampers job creation, directly impacting working families in Colorado. The consequences of misguided policies are felt in rising costs, including electricity bills.