Prepare for power outages today

mission needs to think in the long term, she said.

While the base rates only accounted for 16% of the December increase, both Gilman and Commission Chairman Eric Blank said that the commission should focus on those rates — which they must approve. Blank said the doubling of gas base rates since 2011 didn’t significantly impact consumers when gas prices were low.

“Now the combination of higher commodity prices and the doubling of base rates really puts us in a different world and creates much more affordability pressure,” Blank said.

More attention should be paid to what investments utilities make before the companies come to the commission to add them to the rates customers pay.

Another concern that commissioners expressed is Xcel Energy’s lack of incentive. Blank said there ought to be an alignment of interests between the company and its customers.

“When customers lose, utilities should share some of the pain,” he said.

Gilman said that the mechanism that just passes the cost of natural gas, high or low, on to consumers is also a problem.

“Since it’s a direct pass-through, they do not have an incentive to get you more expensive gas,” Gilman said. “They also don’t have an obvious economic incentive to get the cheapest gas they can. So we need to ensure that they have some skin in the game.”

While 60% of the bill increase was driven by factors the commission can’t control — gas rates and weather — PUC can still have an impact, according to Cindy Schonhaut, director of the Colorado Office of the Utility Consumer Advocate.

“What they can focus on,” she said, “is the 40% of bills beyond the fuel charges,” such as base rates, fixed-use charges and add-ons for specific projects, like pipeline safety.

This story is from The Colorado Sun, a journalist-owned news outlet based in Denver and covering the state. For more, and to support The Colorado Sun, visit coloradosun.com. The Colorado Sun is a partner in the Colorado News Conservancy, owner of Colorado Community Media.