Utility Accountability FAQ
Xcel Energy is Colorado’s largest investor-owned utility. Other investor-owned utilities include Atmos Energy, Black Hills Energy, and Colorado Natural Gas. Colorado also has several electric co-ops and municipal utilities like Colorado Springs Utilities.
The main type of utilities in Colorado are:
- Investor Owned: for profit, shareholder corporations
- Municipal: Publicly owned, not for profits operated directly by local city governments
- Cooperatives: Non-profit entities owned by members and customers they serve
The PUC is a state-level regulatory agency responsible for ensuring that residents receive clean, safe, reliable, and reasonably priced utility services from regulated investor-owned monopoly utilities, in line with Colorado’s clean energy laws and other applicable requirements. It is meant to ensure utilities service the public interest, not just shareholders.
We engage at the PUC to secure tangible wins and encourage participation in local action works on decarbonization and accountability. Generally, the agency only hears from technical experts and attorneys, and having everyday people show up is critical to ensure that our interests are being represented.
How much profit a utility is allowed to preserve for its shareholders vs. what it is investing into infrastructure or maintenance to serve ratepayers.
- Profit: what occurs when the utility pushes costs down below what has been deemed the annual “revenue requirement” and pushes sales up above what is projected in the most recent rate case
- Earnings: what the utility is allowed to include (as a percent of capital invested) into the revenue requirement (what is deemed a reasonable return on its investment)
Alternative options for utilities to consider rather than expanding or replacing old gas pipelines, generally focused on electrification projects.
Utility appreciation: refers to the steady increase in the price of essential services (electricity, natural gas, water) over time, often outpacing general inflation
Utility depreciation: the systematic recovery of capital investment costs (plant infrastructure, new pipelines, etc.) over their useful life
We have just the blog for you! Check it out here: https://www.sierraclub.org/articles/2026/06/how-we-are-moving-buildings-beyond-gas-colorado.
We want to connect local, volunteer-led groups with technical experts, policy support, and experienced organizers. We’re ready to collaborate with local elected officials, city sustainability councils, and ambitious businesses to bring proven model policies, education, and community support. Ultimately, we are focused on:
- Stopping new fossil gas investments that increase long-term costs
- Exposing how utility profits are tied to rising bills
- Building pressure in key decision-making spaces like the PUC
- Creating real pathways for everyday people to engage and influence outcomes
Yes! Fill out this survey to let us know more about you and how you want to be involved.
If you have any questions feel free to email us at colorado.chapter@sierraclub.org.
NW Energy Coalition Acronyms: https://nwenergy.org/energy-101/nwec-acronyms/
NW Energy Coalition 101 resources: https://nwenergy.org/category/energy-101/